- Indonesia’s PT PLN has released its electricity supply business plan for 2021 and 2030
- According to this plan, it will aim to add 4.68 GW of new solar energy capacity over the next 10 years
- Government wants to increase the share of renewables in its energy mix to 23% by 2025, up from 14% at the end of 2020
- Renewables will support the country’s efforts to achieve dedieselization and 100% electrification by 2022
Between 2021 and 2030, Indonesia aims to install 4.68 GW of solar power capacity, out of 20.92 GW renewable energy capacity the country aims as part of its new and renewable energy (EBT) development roadmap. The roadmap is part of the PT PLN’s (PERSERO) Electricity Supply Business Plan (RUPTL) for 2021-2030.
According to the plan, state-owned utility PT PLN will target to install 60 MW in 2021, and add additional capacity every year till 2030, with highest annual capacity of 1.631 GW to be deployed in 2025, post which annual capacity additions will range between 127 MW to 157 MW.
By 2030, Indonesia is expected to need around 40.575 GW of additional power generation capacity under the new plan, and will be achieved in the form of 20.923 GW of renewables and 19.652 GW of fossil fueled power.
Around 14.7 GW additional power generation capacity is scheduled to come online over the next 2 years, mostly from coal fired power plants.
If and when achieved, the renewable energy roadmap will lead to the additional renewables capacity accounting for 51.6% share of the total energy mix, larger than the 48.4% of additional fossil fueled plants.
Indonesia is targeting 23% share of renewables in its total energy mix by 2025, but till the end of 2020 it had only gone up to around 14%. The country’s Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif called this a serious concern as it is not enough to meet Indonesia’s pledge to reduce its GHG emissions by 29% by 2030 under Nationally Determined Contributions (NDC) from Business as Usual (BAU) with its own capabilities and 41% with international support.
Hence, the Southeast Asian nation is betting on renewables due to their declining prices and the ability to come online faster. In addition, the roadmap will also rely on renewables to reach isolated and off-grid regions as Indonesia targets 100% electrification by 2022. Arifin shared Indonesia having reached 99.37% national average electrification ratio as at the end of June 2021.
Part of the plans is also a ‘De-dieselization Program’ under which rural communities served hitherto by diesel power plants, will get renewable energy, basis the local renewable energy potential. Rooftop solar adoption will also be encouraged.