Ongoing Efforts to Support Indonesia’s Energy Transition
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On April 18, Indonesian state-owned electricity company PT PLN (Persero) signed a memorandum of understanding (MoU) with the International Energy Agency (IEA) to further cooperation in helping Indonesia meet its carbon emission reduction targets. The two organizations will work together to finalize the Just Energy Transition Partnership Investment and Policy Plan (JETP IPP) to accelerate Indonesia’s energy transition.
Under the Electricity Business Plan (RUPTL) 2021-2030, PLN has committed to reduce coal power plants from 27.1 GW to 13.8 GW through the use of biomass co-firing and greater use of renewable energy and natural gas. PLN plans to utilize co-firing at 52 different coal-fired power plants by 2025. Through substituting coal with biomass, PLN’s co-firing program has produced over 575.4 GWh of clean energy, reducing carbon emissions by an estimated 570,000 tons of carbon dioxide emissions.
PLN has recently opened collaboration in the development of nine geothermal work areas, with a total estimated capacity of 260 MW. Indonesia is estimated to have 29,000 MW in potential geothermal energy resources, making Indonesia’s natural geothermal energy reserves the largest in the world. The nine work areas have a total estimated capacity of 260 MW. PLN is seeking strategic partners for the geothermal work areas, including international investors and foreign companies, to develop the geothermal work areas. By 2030, Indonesia seeks to reach 8,007.6 MW in installed capacity of electricity from geothermal resources by 2030.