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PLN to offer 1.2 GW worth of new and renewable energy projects
The state-owned electricity monopolist says investment opportunities in clean energy projects are wide open.
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The 5-megawatt Sambelia solar power plant is located on the island of Lombok, West Nusa Tenggara. Seven such plants on the island are expected to supply 8.5 percent of the island's daytime electricity needs, cutting residents' reliance on diesel-fired plants. (PLN/PLN)
State-owned electricity company PLN will tender 21 new and renewable (NRE) projects for the 2021-2022 procurement period.
Energy and Mineral Resources Minister Arifin Tasrif said on Monday that the projects on offer, which are estimated to have a combined generation capacity of 1.2 gigawatts, were part of the 2021-2030 long-term electricity procurement plan (RUPTL).
The projects offered include seven geothermal power plants and six hydroelectric power plants with a combined capacity of 660 megawatt and 235 MW, respectively. The minister also announced at the same event the signing of contracts worth US$3.9 billion for four NRE projects with a total capacity of 14.5 MW.
“The NRE sector is wide open for investments,” he said during the New, Renewable Energy and Energy Conservation Conference and Exhibition (EBTKE ConEx).
Read also: PLN, Masdar start building large-scale solar power plant
The energy ministry’s director for new and renewable energy, Chrisnawan Anditya, said monitoring the procurement process would be crucial to ensure its success. However, he also said that the planned 1.2 GW of installed capacity from the projects would still be insufficient to achieve the targeted 23 percent NRE share in the national energy mix by 2025.
In the last five years, the power-generation capacity of NRE plants has increased by 1,469 MW, or at an average annual growth rate of 4 percent. This figure is less than half of the 3,000 MW in annual capacity increase needed for NRE to make up 23 percent of the national energy mix by 2025, data from the Institute for Essential Services Reform (IESR) show.
