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12 Mar 2024

PLN opens door to collaboration at PLN Investment Days 2024

PLN opens door to collaboration at PLN Investment Days 2024

which was attended by various stakeholders ranging from government, business, banking, academics, to domestic and foreign investors, was an effort to build collaboration in accelerating the clean energy transition in the country.

The Director General of Electricity at the Ministry of Energy and Mineral Resources (ESDM), Jisman P Hutajulu, said that the Government continues to be committed in carrying out the energy transition by reducing dependence on fossil energy and encouraging the use of new, renewable energy (EBT).

"We have ratified the Paris Agreement, establishing the NDC (Nationally Determined Contribution),” said Jisman. "In the future, we will reduce fossil power plants, provided that electricity remains sufficient, reliable and affordable.”

For this reason, he said, the Government will boost the mix of EBT as a substitute for fossil energy in achieving the target of reducing carbon emissions by 32% by 2030. However, Jisman noted that there are at least three big challenges that must be solved in the big energy transition agenda:

  • The mismatch between EBT sources, the majority of which are in Sumatra, Kalimantan and Papua, and the load center in Java.
  • Indonesia as an archipelagic country has its own challenges in building an electricity network capable of supplying remote areas.
  • There is intermittency in EBT generators such as solar and wind, which makes electricity unstable.

According to him, this challenge cannot be carried out by the Government or PLN alone, but must be carried out through collaboration.

"We as the government invite all parties to collaborate, which means mutual benefit. From this event there must be very principled input to the government," stressed Jisman.

PLN President Director Darmawan Prasodjo explained that PLN recognizes that the energy transition cannot be carried out alone. As a catalyst for the energy transition, PLN must build collaboration with various parties to find solutions to existing challenges. Through the Road to PLN Investment Days 2024 discussion forum, PLN wants to convey plans for future electricity development and capture the aspirations of stakeholders. Later, when PLN Investment Days 2024 is held, PLN is ready to expand collaboration with various parties in developing electricity infrastructure in Indonesia.

“This is the spirit of PLN Investment Day 2024. This is a symbol of big change. From PLN which was previously closed, it became very open and collaborative. From PLN, which was previously only an operator with limited development space, it has become the center of value creation," said Darmawan.

Darmawan believes, through collaboration, challenges such as mismatch between EBT sources and load centers and intermittency in EBT can be resolved and resolved. PLN has developed the Accelerated Renewable Energy Development (ARED) programme.

With ARED, PLN is building national electricity distribution through the Green Enabling Super Grid. Making Indonesia's electricity system, which was previously separated between islands, connected to each other and the potential for large-scale renewable energy that has not been exploited so far can be maximized. EBT-based electricity supply will increase from 22 GW to 61 GW.

Then, to overcome the intermittency challenge of NRE sources, PLN is also building a smart grid with smart power plants and flexible generation equipped with smart transmission, smart distribution, smart control center and smart meters. Through ARED, 75 percent of the additional electricity capacity comes from EBT, while 25 percent comes from natural gas.

Through this agenda, Darmawan also openly invites policy makers in the energy sector to collaborate in aspects of technology, innovation and investment. Specifically for investment, he said his crucial role was to ensure that EBT development was commercially viable and affordable for the community.

"The spirit is fairness, where if you work together with us, we want to ensure that investment can recover. If there are risks, we will map them one by one and handle them carefully," concluded Darmawan.

This forum is a series of activities to welcome PLN Investment Days 2024 which will be held soon. Through PLN Investment Days 2024, PLN will open opportunities for collaboration with various parties in developing electricity infrastructure in Indonesia.

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