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IESR urges PLN to include more renewables in new electricity procurement plan
State-owned electricity utility PLN should focus on boosting renewable energy projects in its revised electricity procurement plan (RUPTL) to seize funding opportunities from the landmark Just Energy Transition Partnership (JETP) deal.
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President Joko "Jokowi" Widodo (center) speaks on Nov. 16, 2022, accompanied by Foreign Minister Retno LP Marsudi (left) and Finance Minister Sri Mulyani Indrawati (right), at the Bali International Convention Centre (BICC), during the G20 Summit in Bali. At the summit, Indonesia received a commitment from the Just Energy Transition Partnership (JETP) of US$20 billion. (Cabinet Secretariat of The Republic of Indonesia/Rahmat)
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tate-owned electricity company PLN should focus on boosting renewable energy projects in its proposed revision of the electricity procurement plan (RUPTL), according to the Institute for Essential Services Reform (IESR).
Raden Raditya Yudha Wiranegara, a senior researcher at IESR told The Jakarta Post on Monday that providing more renewable energy projects would allow the company to seize funding opportunities from the landmark Just Energy Transition Partnership (JETP) deal.
“Since there is not much time left, if PLN wants to finance sizeable renewable energy projects, including their transmission and distribution lines, the company needs to prioritize renewable projects,” he said.
PLN was negotiating to revise its 2021-2030 electricity procurement plan with the Energy and Mineral Resources Ministry, according to Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo on Aug. 30 during an interview with CNBC Indonesia.
Kartika said the revised RUPTL would allow PLN to be better equipped to lower emissions from the power sector, which it would do by introducing short-term solutions to reduce emissions from coal-fired power plants and push for the conversion of diesel power plants to natural gas plants in the next two to three years, as well as by opening more renewable energy projects.
PLN proposed the revision in less than two years after the most recent revision in 2021 that allowed renewable energy to comprise 51.6 percent of the upcoming procurement, up from at 29.6 percent in previous procurement plan.
Read also: New power plan projects slower demand growth, more renewables
