PT PLN's Darmawan Prasodjo Outlines Challenges and Progress in Renewable Energy Transition

PT PLN (Persero) has made substantial progress in accelerating the transition to renewable energy in Indonesia, with a notable positive trend in 2023. Director Darmawan Prasodjo emphasized that while building power plants in high-demand areas like West Java is feasible, renewable energy sources such as hydroelectric power present unique challenges.

Indonesia's transition to renewable energy has significant implications for the country's efforts to reduce its carbon footprint and mitigate the impacts of climate change. Successful implementation of PLN's renewable energy plans could lead to a reduction in greenhouse gas emissions and improved air quality, contributing to a more sustainable future.

In 2023, PLN increased the installed capacity of renewable energy power plants to 8,786 MW, a growth of 261 MW compared to 2022. Hydroelectric power contributed the largest portion, with a capacity of 5,777 MW, followed by geothermal power at 2,519 MW. The remaining capacity came from solar, wind, and biomass sources.

Darmawan acknowledged the technical, strategic, operational, and financial challenges PLN faces in the transition to renewable energy. To address these obstacles, PLN has mapped out each challenge and is actively working to mitigate and manage them.

Financial sustainability has been a key achievement for PLN, with a cash balance of Rp55.92 trillion in 2023. The company also reduced its long-term debt by Rp4.24 trillion and short-term debt by Rp8.53 trillion.

PLN's biomass and co-firing programs have seen significant progress, with 43 power plants using over 990,000 tons of co-firing, an increase of 69% compared to 2022. This initiative produced over 1 million MWh of electricity in 2023, nearly double the amount in 2022.

The demand for Renewable Energy Certificates (REC) has also surged, with 3,378 transactions in 2023, marking a 69.67% increase compared to the previous year. This reflects strong public support for PLN's commitment to renewable energy.

Looking ahead, PLN plans to implement co-firing in 52 power plants by 2025. Darmawan highlighted the benefits of co-firing technology, stating that it not only reduces emissions and fossil fuel usage but also involves local communities in biomass development. "Teknologi co-firing merupakan sebuah terobosan dalam transisi energi di tanah air. Sebab, dengan teknologi ini, banyak manfaat yang didapatkan, selain pengurangan emisi juga akan mengurangi penggunaan energi fosil. Lebih dari itu, co-firing juga mendorong perekonomian kerakyatan lewat keterlibatan langsung masyarakat dalam pengembangan biomassa."

The investment needed to accelerate the development of new and renewable energy (EBT) in Indonesia is estimated at around $110 billion. By 2040, Indonesia aims to add 80 gigawatts (GW) of installed electricity capacity, with 75% coming from new and renewable energy and 25% from gas.

To support this transition, a transmission network of 47,000 kilometers is required, costing approximately $25 billion (IDR 300 trillion). The private sector will be given a 60% share in increasing new and renewable energy electricity capacity, while PLN will handle the rest.

Darmawan stressed the importance of collaboration with various entities to reduce the burden on PLN and to find solutions to challenges like mismatch of EBT sources with load centers and intermittency in EBT. *"Challenges such as mismatch of EBT sources with load centers and intermittency in EBT can be resolved and resolved. "*

PLN's commitment to renewable energy and financial sustainability, coupled with strategic investments and collaboration, positions Indonesia to make significant progress in its energy transition goals. The ongoing efforts to increase renewable energy capacity and reduce fossil fuel dependency are essential for addressing climate change impacts.

Key Takeaways

• PLN increases renewable energy capacity to 8,786 MW in 2023, up 261 MW from 2022.
• Hydroelectric power contributes 5,777 MW, followed by geothermal power at 2,519 MW.
• PLN reduces long-term debt by Rp4.24 trillion and short-term debt by Rp8.53 trillion in 2023.
• Co-firing program sees 69% growth, producing over 1 million MWh of electricity in 2023.
• Indonesia aims to add 80 GW of installed electricity capacity by 2040, with 75% from new and renewable energy.