Indonesia Plans Additional 31.6 GW Renewable Power Capacity in 2024-2033

Indonesia’s national utility company, Perusahaan Listrik Negara (PLN), has outlined plans to construct an additional 31.6 gigawatts of renewable energy capacity between 2024 and 2033, constituting 75% of the total additional generation during this period. The remaining capacity is anticipated to come from gas power plants, as indicated by PLN’s Chief Executive, Darmawan Prasodjo, referencing a preliminary power supply plan presented to the parliament.

The most recent activity is the inauguration of the Cirata Floating Solar Power Plant (PLTS) in Purwakarta, West Java, on Thursday, November 9, 2023, by President “Jokowi” Widodo.

The Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, mentioned that the maximum potential of this PLTS Cirata could reach 1.2 GWp if utilizing 20 percent of the total scale of the Cirata Dam.

In the previous 2021-2030 plan, PLN had proposed the development of 20.9 gigawatts of renewable capacity and nearly 20 gigawatts of gas and coal power capacity. As of September, 8.6 gigawatts of the total additional capacity planned for 2021-2030 has already been implemented. This new initiative is designed to expedite the adoption of cleaner energy in alignment with Indonesia’s goal to achieve net-zero emissions before 2060.

Furthermore, PLN intends to establish transmission infrastructure to connect hydropower and other renewable energy sources to high-demand areas such as Java, and to Sulawesi, where energy consumption is projected to increase in the future. Notably, the proposed power supply plan does not assume an accelerated shutdown of coal-fired power plants. Despite Indonesia being a significant coal producer and exporter, contributing to approximately half of the country’s electricity grid, Darmawan clarified to the parliament that the strategy is a “coal phase-down” rather than a complete phase-out. Most coal power plants will remain operational until the expiration of their contracts, and PLN plans to implement carbon capture and storage technology when it becomes available.

Although Indonesia had sought financial support from global lenders to expedite the closure of coal power plants for emission reduction, concerns among banks regarding potential negative perceptions from environmental groups have impeded such financing. Banks, having already pledged to cease funding new coal projects, are cautious about providing loans for the early shutdown of existing coal facilities.

As part of the Just Energy Transition Partnership (JETP) scheme, where affluent nations and global lenders committed $20 billion in funding to enhance Indonesia’s power sector, two power plants with a combined capacity of 1.7 gigawatts are slated for closure by 2040.

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