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Licensing, land acquisition issues hold back hydropower development
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An aerial photo shows the Serut hydroelectric power plant, with a capacity of 54 megawatts, in Blitar, East Java, on March 24, 2018. (Antara/Irfan Anshori)
H
ydroelectric power was once slated to spearhead Indonesia’s transition to renewable energy, but despite the abundant potential, industry players are reluctant to invest because of what analysts see as excessive bureaucratic hurdles.
The government’s 2021-2030 long-term electricity procurement plan (RUPTL) envisions hydroelectric power delivering the largest chunk of renewable energy at 15.56 gigawatts (GW) or 15 percent of nationwide electricity generation capacity by 2030, followed by geothermal power and solar power at 5.79 GW and 4.68 GW, respectively.
Paul Butarbutar, director of the Indonesia Research Institute for Decarbonization (IRID), said profitability for investors and easier licensing procedures for hydropower development and land acquisition were vital to encourage the sector's development in Indonesia.
“Hydroelectric power has much to contribute to [Indonesia’s energy transition], but there [are a number] of challenges [stakeholders] need to address,” he told The Jakarta Post on Monday.
Hydropower provides essential backup power during major electricity outages, because it can supply power to the grid immediately.
Indonesia’s technical hydropower potential is estimated at 75 GW, with untapped resources concentrated on the islands of Sumatra, Java and Sulawesi, according to data from the International Hydropower Association (IHA), which has members in dozens of countries.
But, the government’s push for more hydroelectric power infrastructure has run up against challenges, including land acquisition issues, licensing and environmental problems, risky cost overruns as well as delays in the start of commercial operations, the Energy and Mineral Resources Ministry’s renewables directorate general told the Post on Oct. 11.
