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SOEs vow to use solar energy
State-owned enterprises (SOEs) have promised to install solar panels at their offices and facilities as part of the government’s effort to generate renewable energy
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span>State-owned enterprises (SOEs) have promised to install solar panels at their offices and facilities as part of the government’s effort to generate renewable energy.
The SOEs’ solar power generation will contribute to national energy output, 23 percent of which is expected to come from renewable resources by 2025.
The SOE Ministry’s undersecretary for mining, strategic industries and media affairs, Fajar Harry Sampurno, confirmed on Wednesday that 30 SOEs had expressed a commitment to use solar energy.
“It’s still a commitment [from the SOEs]. We will identify the potential of each of the SOEs’ assets, to see whether [solar panels can be placed] on their buildings or other properties,” he said during a focus group discussion on solar power generation by SOEs.
Fajar said the equipment to produce solar energy could include rooftop solar panels, floating solar panels or other technology that would be supplied by state-owned electronic components makers PT LEN and PT Wika Industri Energi, a subsidiary of state-owned construction firm PT Wijaya Karya.
When asked about the investment amount and the deadline for the project, he did not provide detailed answers, saying that the project was still in its early phases.
The government has set a target to increase renewable energy production to 6,500 megawatts (MW) or 23 percent of the national energy mix by 2025. Of that percentage, 3 percent will be from solar energy. Currently, the country produces less than 1,000 MW from renewable energy sources.
Data from LEN shows there is the potential to generate 1,426 MW in solar energy from the facilities and assets of SOEs, classed in 10 categories, including toll roads, airports, fuel stations, train stations, factories, mine sites, ports and plantations.
“For example, PT Pos Indonesia [state postal service firm] has a lot of assets across the country. It [solar energy] will help them to reduce operational costs,” LEN president director Zakky Gamal Yasin said.
Zakky added that the company had proposed to SOE Minister Rini Soemarno to set up a special team to oversee the commitments of SOEs to install solar energy equipment.
State-owned energy giant Pertamina, state-owned coal producer PT Bukit Asam and state-owned airport operator PT Angkasa Pura II are among nine SOEs that have committed to using more solar energy and have installed LEN-made solar technology in their assets.
Energy and Mineral Resources Ministry New and Renewable Energy Director General FX Sutijastoto said the push for renewable energy generation through SOEs was crucial to increase the contribution of renewable energy to the energy sector.
He said of the 6,500 MW solar energy target, state-owned electricity firm PLN could supply only 15.38 percent, or 1,000 MW, as stipulated in its recent electricity procurement plan (RUPTL).
“We still have a gap of around 5,000 MW, but 1,200 MW could be generated from SOEs,” he said.Sutijastoto acknowledged that the SOEs’ commitments were not an obligation, but said he believed they would follow through to reap the benefits, namely saving around 30 percent on energy costs, according to a calculation from LEN.
“We hope there will be an additional 1,426 MW from SOEs by 2025,” he said, adding that the current contribution of renewable energy to the national energy mix was still below 10 percent.
A PLN representative in the discussion also promised to boost the use of solar energy, but noted that the government would need to help with covering the additional costs of implementing the technology.
PLN’s newly elected strategic procurement 1 director Sripeni Intan Cahyani said three new investments needed to be made to overcome the intermittency risks of clean energy, namely an automatic system, a backup facility and grid code enforcement.
“Several renewable energy power plants, which are intermittent in nature, will require increased investment, which will affect the economic feasibility of the project,” she said.
“Therefore, we have discussed with the government about how to share the costs [of investing in renewable energy] so that we don’t bear the burden alone.”
There are currently 13 clusters with solar power plant potential, but PLN has only focused on developing projects in two clusters, namely the RUPTL cluster and the solar rooftop cluster.
Solar power projects could also be developed in the fisheries, transportation, tourism, oil and gas and health sectors, as well as at old mining sites and with floating solar panels.
“The SOEs commitment will help boost the local solar panel market and subsequently reduce the costs of the technology, making it more affordable for most of society,” Fabby Tumiwa, the executive director of energy watchdog Institute for Essential Services Reform (IESR), told The Jakarta Post via text message on Wednesday.
The IESR estimated that at least 300 MW of solar energy could be generated from SOEs’ buildings and facilities in two years.
“Besides the benefits in the form of lower operational costs, the SOEs could also step into a new line of business as independent power producers of renewable energy,” Fabby said.
