Indonesia Unveils its Greenest Procurement Plan for the Power Sector

Nov 2021

Indonesia has revealed the latest procurement plan, RUPTL 2021 – 30, created by the state utility Perusahaan Listrik Negara (PLN). It includes up to USD 35 billion for developing renewable energy-based power plants in the coming decade. The plan envisions a total of 40.6 GW of planned additional capacity, with renewables making up 51.6%. Hydropower represents around half of the total, while solar is looking at the most significant increase, more than tripling to 4.7 GW.

The country is aiming to reduce its reliance on coal power plants and plans to not have any new thermal power plants in 2028. From now to 2027, just 13.8 GW of new capacity from new coal-fired power plants will be added. PLN is also exploring partnerships with international financial institutions to tap a carbon reduction fund to be able to support early retirements of coal-fired power plants.

Looking strategically ahead, PLN is considering new technologies such as carbon capture, utilization and storage, hydrogen, nuclear and tidal power. On top of that, the entity will push for widespread usage of induction stoves, electric vehicles and rooftop solar development across the nation.

Currently, electricity tariffs from renewables are not as competitive as those from coal. However, to support its development, the Ministry of Energy is finalizing a draft for a new regulation to make renewables’ electricity tariffs more competitive.

(Source: Nikkei Asia)

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