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PLN promotes renewable energy, NZE 2060 target at South Korea RE Invest Indonesia 2023
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PLN executive vice president of Corporate Strategic Planning, Harlen En (right), joins ADB country director for Indonesia Jiro Tominaga (center), moderator and Tenggara Strategics executive director Riyadi Suparno (left) and PT Sarana Multi Infrastruktur director Pradana Murti (not pictured) in a panel discussion on energy transition financing through the Just Energy Transition Partnership (JETP) and the Energy Transition Mechanism (ETM) at the South Korea Renewable Energy (RE) Invest Indonesia 2023-Business Forum on 50 Years of Indonesia-Korea Relations. (Courtesy of the Embassy of the Republic of Indonesia in Seoul)
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ndonesia’s efforts to reach its ambitious 2060 Net-Zero Emission (NZE) target are steadily underway, with state-owned electricity company PT PLN carrying out work toward decarbonizing its fossil fuel-based power plants, expanding renewables capacity and supporting systems and developing green ecosystems.
According to PLN executive vice president of Corporate Strategic Planning, Harlen En, the company expected to reduce the country’s CO2 emissions by more than 98 million tonnes by 2030, with efforts thus far including cancelling 13.3 gigawatts (GW) worth of new coal-fired power plants, adding new and renewable energy generators and biomass cofiring at 36 coal-fired power plants.
With energy transition a path toward reaching the NZE 2060 target, developing 20.9 GW worth of renewable energy projects by 2030 is PLN’s main pillar for this transition. Based on the company’s 2021-2030 long-term electricity procurement plan (RUPTL), the renewable energy projects will consist of hydro, geothermal and variable renewable energy (VRE) power plants in addition to bioenergy.
Harlen further noted that one of PLN’s notable strategies to decrease carbon emissions is the early retirement of coal-fired power plants, which, according to PLN’s data, requires an estimated US$4.2 billion in funding. According to Harlen, international funding assistance would aid the feasibility of this early retirement program.
“We need support from international funding to achieve this target. If we can do this retirement [of coal-fired power plants], it means we can reduce our emission [to net-zero] by 2060”, said Harlen at the South Korea RE Invest Indonesia 2023-Business Forum on 50 Years of Indonesia-Korea Relations, hosted by Tenggara Strategics, the Centre for Strategic and International Studies (CSIS) in Indonesia and the Indonesian Embassy in Korea.
Speaking at the event’s session on energy transition financing through the Just Energy Transition Partnership (JETP) and Energy Transition Mechanism (ETM) in Indonesia, Harlen elaborated on other energy transition initiatives targeted by PLN.
Under the company’s short-term goals, the initiatives include de-dieselization projects, biomass cofiring and gas expansion, while other initiatives such as hydrogen co-firing and carbon capture utilization and storage (CCUS) are listed as PLN’s long-term goals. Additionally, developing supporting technologies and businesses, including electric vehicles (EVs), solar rooftops and reduction emission certificates, is essential to support the advancement of energy transition in Indonesia.
However, to reach these targets and thus achieve the NZE 2060 target, a whopping total investment of over US$724 billion is required.
Sticking to PLN’s four strategic goals of lean, green, innovative and customer focused, Harlen also shed light on the company’s ongoing renewable energy projects. For example, in Jatigede, West Java, PLN is developing a 110-megawatt (MW) hydroelectric power plant slated for a commercial operation date of January 2024. A 145 MW floating solar power plant, Terapung Cirata, is also in development in West Java.
Furthermore, PLN is on track to develop the Arun Lhokseumawe Special Economic Zone (SEZ) in Aceh as a green industrial cluster (park). With a total land area of 2,600 hectares, a pilot project will first be developed in its 120 hectares Iskandar Muda Industrial Area. Harlen mentioned that other green industrial clusters will follow this cluster.
“We will also map other regions for the development of a green cluster industry, especially in Sulawesi”, said Harlen.
Aside from that, PLN, which holds a monopoly on the country’s electric power sector, will also develop electricity in new capital city of Nusantara in Kalimantan. Heralded as a smart forest city, PLN will support Nusantara Capital City’s (IKN) electricity development through business models that include a business-as-usual scheme and partnerships with the IKN Authority-Owned Enterprises (BUMO).
Held in a hybrid format on May 3, the South Korea RE Invest Indonesia 2023-Business Forum on 50 Years of Indonesia-Korea Relations was attended by around 100 offline participants in Incheon, South Korea, and 60 online participants hailing from energy companies and government agencies from Indonesia and South Korea.
The event received the support of PLN, PT Sarana Multi Infrastruktur (PT SMI), Indonesia’s Finance Ministry, the IKN Authority, Bank Indonesia (BI) and KB Kookmin Bank.
South Korea RE Invest Indonesia is also part of RE Invest Indonesia 2023, the third multistakeholder event of its kind jointly established by Tenggara Strategics and CSIS Indonesia with the aim to bring together renewable energy players from China, Japan and South Korea, as well as Indonesia, to invest in Indonesia’s renewable energy sector.
This article is written in partnership with Tenggara Strategics.
