Some of Interesting Facts:
INDONESIA STUMBLES ON MEGA POWER PROJECT
The government’s plan to develop an additional 35,000 megawatts (MW) of electricity capacity by 2019 has hit a couple of speed bumps since it was announced last year, prompting President Joko “Jokowi” Widodo to order a review of the feasibility of the ambitious project. In mid-2015, President Jokowi announced a target of installing 35,000 MW of capacity before 2019, as electricity demand is predicted to increase by 7,000 MW per year. (thejakartapost.com)
An Introduction to Indonesia’s Renewable Energy Industry
The Indonesian government has prioritized the development of its renewable energy sector in order to bolster low supply and to meet growing consumption of energy head on. One of its strategies has been to adopt regulations to promote the domestic renewable industry. This can be seen in the government’s 2014 National Energy Policy (NEP14). NEP14 attempts to transform Indonesia’s energy sector by reducing oil consumption and expanding renewable resources by over eleven times by 2025. The plan targets a minimum of 23 percent renewable energy consumption by 2025 and 31 percent in 2050 (indonesiabriefing.com)
PLN has allocated Rp 3 trillion to accelerate the development of transmission lines in West Java align with the completion of new power plants within the next few years.
Minister of Energy and Mineral Resources Ignatius Jonan and President Director of Perusahaan Listrik Negara (PLN) Sofyan Basir have witnessed the signing of 11 power purchase agreements (PPA) for new renewable energy between state-owned PLN and independent power producers (IPP) on Friday (9/8/2017). The total capacity of the 11 PPAs reaches 291.4 megawatts (MW).
The signing of PPA today is a continuation of new renewable energy PPA signing on August 2, 2017, with a capacity of 257.17 MW. With the addition of today’s PPA, the total capacity from the PPAs touches 548.57 MW
The potential for new renewable energy power plant development will continue to be improved, given its wider affordability and reaching Indonesia’s remote areas. This is in line with RUPTL 2017 – 2026, where new renewable energy power plant reaches 23 percent by 2025 with a capacity of 45 GW. (www.en.netralnews.com)
Director General of Electricity Jarman said the company and PLN is completing the draft for General Plan of Power Supply (2017-2026).
Pertamina Geothermal Energy (PGE) will drill 14 geothermal wells this year to pursue additional capacity of 65 MW of the total capacity 532 MW to 617 MW. 85 MW of geothermal power plant capacity will be in operating this year comprised of Ulubelu unit 4 with capacity of 55 MW and Karaha unit 4 with capacity of 30 MW.
Indonesia to Auction off Geothermal Power Projects Worth $1b
The government will auction off six geothermal projects worth $1.02 billion in September to expand Indonesia’s renewable energy capacity as part of its plan to become the world’s largest geothermal producer. Local companies and foreign investors from the United States, Italy, Japan, South Korea, Turkey and China have expressed interest in the projects, which will have a combined capacity of 255 megawatts.
The government aims for Indonesia, which is now the world’s third-largest geothermal producer, to become the world’s largest by 2021, overtaking current number one, the United States. Indonesia expects to have a total geothermal capacity of 3,559.5 MW within the next four years. The country’s total geothermal capacity amounted to 1,643.5 MW last year.(electricindonesia.com)
Investment in Indonesia’s Electricity Sector; Sparks of Life
Indonesia aims to achieve nearly complete electrification of the country by 2020. During the APEC CEO Summit in Beijing, President Widodo therefore announced his crucial goal: to boost Indonesia’s electricity production and distribution to facilitate economic growth. He laid out his ambitious infrastructure project plans and pledged to allocate most of his resources in the immediate term to facilitate infrastructure development. Currently, the government has a nationwide target of 53 MW installed power capacity, and annual electricity sales of 220 TWH. For the electricity ratio, the Indonesian government plans to increase the ratio to 97.2% by 2019 from the current 87.5%. (gbgindonesia.com)
Whatever Happened to Indonesia’s Mighty Oil and Gas Industry?
Indonesia’s Energy and Mineral Resources Minister Ignasius Jonanwas planning for expansion and aimed to lure as much as $200 billion in investment over the next decade, offering incentives such as tax-free import of drilling equipment and simpler cost recovery. It is also revising the tax structure. He said state-owned oil giant PT Pertamina is spending billions of dollars to boost production and refining capacity and Indonesia’s crude output is expected to top 1 million barrels a day by 2019, from about 800,000 barrels now. (bloomberg.com)