Boosting renewable power generation in Indonesia electricity sector: a policy action by the government

Abstract

Indonesia is committed to reducing Greenhouse Gas Emissions (GHG) by 29% against Business as Usual (BAU) projections in 2030 with its own efforts and 41% with international assistance as part of the Paris Agreement. In the management and utilization of electricity, the development of renewable energy (RE) power generation in Indonesia is carried out while taking into account the balance with other aspects, namely Energy Security, Energy Equity, and Energy Sustainability or called as Energy Trilemma. In accordance with PLN’s Electricity Supply and Demand Business Plan (RUPTL) 2018-2027 that has been approved by the Minister of Energy and Mineral Resources, the total capacity of RE power generation to be built up to 2025 is about of 14.3 GW consists of geothermal power generation (PLTP) of 4.6 GW; hydro power generation (including mini-hydro and pump storage): 7.7 GW; solar power generation (PLTS): 1.0 GW; wind power generation (PLTB): 0.6 GW; and biomass/waste power generation (PLTBm/PLTSa): 0.4 GW. The RE power generation to be developed is still dominated by "Non-Intermittent" RE power generation (89%). While the "Intermittent" RE power generation that will be developed is still relatively small, which is only about 11%. This is due to challenges in its development, namely PLN is the only "Off-Taker" in the electricity business, and not all RE power generation can be accepted by the electricity system. As an effort to improve the development of RE power generation, the policy actions that have been or will be implemented by the government are 1) Development of RE power generation should be consider the balancing between "supply and demand" and the readiness of the electricity system to tapping the RE power generation at the most competitive costs; 2) Development of Distributed Generation or Micro-Grid; 3) Revision of the Grid Code to accommodate the Intermittent RE power generator; 4) Development of Smart-Grid; and 5) Acceleration of the Electric Vehicle Program.