JakartaPost-Sept 11
On the sidelines of last week’s ASEAN Indo-Pacific Forum, PLN chief executive Darmawan Prasodjo revealed the firm’s plans to add 32 gigawatts of clean power generation capacity and reduce its reliance on coal. Under that proposal, 75 percent of the company’s additional capacity would be based on renewable sources, a massive step up from the current target of 51.6 percent. The new target is under discussion to be included in a new long-term electricity procurement plan (RUPTL) for the period of 2023 to 2032, which is set to replace the current RUPTL that lays out the state-owned utility’s plans for the 2021-2030 decade. Analysts say that the target is a necessity and ambitious enough to meet Indonesia’s target of reaching net-zero carbon emissions by 2060. However, they also stress that its implementation will face many challenges, especially if the government remains reluctant to disincentivize the coal industry and to subsidize renewable energy investment. Greenpeace Indonesia climate and energy campaigner Adila Isfandiari hailed PLN’s plan as “very good progress” compared with the current RUPTL published in 2021, which only aims for 10.6 GW in additional electricity-generating capacity from renewables by 2025 and 20.9 GW by 2030. Adila stressed that it was a must-achieve target in order to meet a requirement for the Just Energy Transition Partnership, which is to have renewable energy account for at least 34 percent of nationwide power generation by 2030. However, Adila expressed doubt that PLN would reach the target as the historical trend showed that growth of clean power generation capacity had been slow over the past decade due to a lack of financing interest. Pushing renewable energy requires more government incentives for the sector, and disincentives for the coal business. “The energy transition is a zero-sum game. We cannot keep the coal while adding renewable energy. We need to stop the former so that the latter can come in,” she said. Read more at: https://www.thejakartapost.com/business/2023/09/11/plns-ambitious-renewables-target-lacks-govt-support-analysts.html
