Indonesia Promotes Renewable Energy Growth

The Ministry of Energy and Mineral Resources has instructed PLN to continue to encourage the development of renewable energy and the target of generating electricity from green energy to increase 1.8 MW to 16,714 MW.

The Minister of Energy and Mineral Resources (ESDM) of the Jokowi-JK Cabinet, Ignasius Jonan, assumed that the business plan for electricity demand growth averaged 6-7% per year.

In the PT PLN RUPTL 2019-2028, the additional electricity infrastructure planned to be built up to 2028 is a power plant of 56,395 MW, a transmission network of 57,293 kms, a substation of 124,341 MVA, a distribution network of 472,795 kms, and a distribution substation of 33,730 MVA . Specifically for power plants, some projects have experienced a change in scope or capacity, and a shift in the Commercial Operation Date (COD). This is done to adjust the electricity growth needs. However, in an effort to improve system reliability, the RUPTL also added a number of new projects.

The Ministry of Energy and Mineral Resources also instructed PLN to keep the energy mix from gas maintained at a minimum of 23% in 2025 and so on, to support the ntegration of intermittent EBT plants (Variable Renewable Energy). The government is also committed that the use of gas for power plants prioritizes gas in the wellhead. Regarding the use of BBM for electricity generation, the maximum limit is 0.4% starting in 2025, which is only used for rural areas.