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Painstakingly slow progress on renewable energy infrastructure
The energy ministry expects investment in the sector to total US$1.44 billion by the end of the year, well below the targeted $2.04 billion.
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Trying to catch up: A worker inspects solar panels on top of the building housing the Energy and Mineral Resources Ministry’s Electricity Directorate General in Jakarta in this undated photograph. (JP/Dhoni Setiawan)
T
he Energy and Mineral Resources Ministry expects investment in the new and renewable energy (NRE) sector to miss the target set for this year.
The ministry’s director general in charge of renewables, Dadan Kusdiana, said several NRE projects had been delayed by the pandemic.
“We may not reach the [investment] target set for 2021,” Dadan said during a virtual press conference on Friday. He added that, given the wide discrepancy from the target at this time, the energy ministry predicted investment in the NRE sector would reach US$1.44 billion by the end of the year.
So far, NRE investment in 2021 totals $1.12 billion, or 54 percent of the $2.04 billion full-year target, ministry data show.
The $1.12 billion is dominated by investment in geothermal energy, various NRE projects and bioenergy at $540 million, $350 million and $200 million, respectively.
Read also: PLN, Masdar begin building biggest floating solar plant in Southeast Asia
Institute for Essential Services Reform (IESR) executive director Fabby Tumiwa said several factors, including uncertainty surrounding state-owned electricity company PLN’s auction schedule and lengthy power purchase agreement (PPA) discussions, were detrimental to the renewable energy investment climate in Indonesia.
