The power sector will have a central role in contributing to Indonesia’s target of cutting greenhouse gas emissions by at least 26 percent with business-as-usual approach and by as much as 41 percent with enhanced international support by 2030, and of reaching carbon neutrality by 2060. Phasing down coal and scaling up renewable energy will be central to meeting Indonesia’s low carbon transition targets.
Read More
DNV served as the Lender’s Technical Advisor during the development phase of Indonesia’s first-ever floating solar PV project at Cirata Reservoir in West Java. Masdar and PLN, Indonesia’s state-owned electricity company, have now partnered to form PMSE. The 145 MWac Cirata floating PV project will be one of the largest in Southeast Asia once it is operational.
Read More
Green awareness in the industry is poor, according to market participants. Because of the regulation, some people have started to have green portfolios. Investors were also found to have little knowledge about or experience with renewable energy. Many market participants feel that there aren’t enough profitable renewable projects in the pipeline for municipal governments and that the Indonesian financial services authority may demand the underlying project to run first, even before the bond is issued, to ensure that the project is real.
Read More
IEEFA believes that a focused effort to prioritize particular regions could be more viable than chasing the dream of an ambitious nation-wide deployment plan. A targeted deployment plan focused on demonstrating commercial viability and PLN’s willingness to support long-term purchase agreements would send a stronger positive signal to attract major investments for the biomass industry. Indonesia has the potential to become a powerhouse for the biomass industry, and the cofiring ambition could be a starting point to spark its development.
Read More
If Indonesia can adopt international best practice for renewable energy (RE) planning, procurement, contracting, and risk mitigation, then the financial costs of RE development will decline accordingly. Until now the government has not adequately taken into account the dependency of RE costs on the broader regulatory and commercial environment. The implementation of an appropriate subsidy mechanism should therefore be part of a broader inter ministerial electricity policy reform program.
Read More