Indonesia to add 41 GW of electricity in 10 years

According to Director General of Electricity Rida Mulyana, the Indonesian government is aiming for an additional this year, including 5 GW of power plants at the mouth of the mine, 3 GW of gas-fired power plants, 22 MW of diesel power plants and 737 MW of new and renewable energies. plants.

Of the 41 GW of new generation capacity in the next 10 years, 35 GW has been discussed with the national electricity utility PLN, with 6 GW still to be planned.

When drafting the RUPTL for the next 10 years, the Indonesian government will continue to prioritize the development of fossil fuel power plants over new renewable energy power plants at a rate of 52% to 48%.

PLN earlier pledged to stop building coal-fired power plants by 2023 after completing the 35GW of ongoing projects. It aims to phase out coal-fired power as Indonesia rolls out its ambitions of carbon neutrality through 2050. Reuters reported that Indonesia plans to introduce carbon taxes to reduce gas emissions to greenhouse effect.

Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “For developing countries with high economic growth and low affordability, net zero liabilities under the Paris Agreement present the dilemma of balancing this growth with obligations to decarbonize. In this context, it is not surprising that Indonesia still relies heavily on fossil fuels for the time being.

“However, Indonesia’s energy policy shift of moving away from carbon-intensive forms of power generation in the long term is consistent with the policy shift that is sweeping much of the region. ASEAN and beyond,” he said.

“Replacing existing coal-fired power plants and meeting new demand with renewable energy will present multiple challenges, including understanding the priority of carbon-intensive power plants to be decommissioned before the end of their economic life. Considerations here will include not only economic and environmental considerations, but also regulatory and contractual considerations given that many plants have been developed under an Independent Power Producer (IPP) model. An energy transition plan will need to be put in place so that a clear roadmap to net zero can be established with all considerations taken into account. We can anticipate not only Indonesia but other countries heavily dependent on carbon-intensive production to implement such energy transition plans in due time to achieve their net zero goals,” he said. -he declares.

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