Looking Closer to the Renewable Energy Development in the Industrial and Community Sectors in Central Java

Central Java, November 11, 2022 –  The Central Java provincial government is committed to supporting and encouraging renewable energy development from the industrial sector to the community level. It can be seen in several companies and villages implementing renewable energy in their environment. Renewable energy is generated from natural processes that are continuously replenished. Renewable energy includes solar, geothermal heat, wind, tides, water, and biomass. 

The Central Java Energy and Mineral Resources Department and the Institute for Essential Service Reform (IESR) held the Central Java Energy Exploration for two days, November 10 and November 11, 2022, with the theme “Energy Transition to Build an Environmentally Friendly and Sustainable Industry.” Participants visited two companies and villages implementing renewable energy on the second day, PT. Sarihusada Generasi Mahardhika – Prambanan Factory, PT. Tirta Investama-Klaten Aqua Factory, and Ngesrep Balong Kendal Village PLTMH.

Utilization of Rice Husk as Energy

Sarihusada Generasi Mahardhika – Prambanan Factory inaugurated the construction of a rice husk-fired Biomass Boiler in June 2022. The biomass boiler will use 10,500 tons of rice husk annually and can produce up to 6 tons of steam per hour. With this ability, it’s no wonder this rice husk-fired industrial biomass boiler is claimed to be the first in Central Java.

Rice husk is an agricultural waste sourced from several areas in Central Java Province, including the surrounding agricultural land within this Biomass boiler facility, which is one of the most significant contributors to rice production nationally. Joko Yulianto, Plant Manager of Sarihusada Prambanan Factory, stated that the biomass boiler operated by Sarihusada could reduce carbon emissions by 8,300 tons of CO2 or the equivalent of carbon emissions absorbed through planting 120,000 trees. It also reduces the carbon footprint generated from the production process at the Prambanan Factory by up to 32%.

“Biomass boilers are an alternative to environmentally friendly technology. The energy produced comes from natural renewable sources. In the form of biological elements such as dead organisms or living plants, “explained Joko Yulianto.

The IESR Study 2021 assesses the potential for biomass in Indonesia to reach around 30.73 GW, but the efficiency is still in the range of 20-35 percent. The use of biomass in the industrial sector is becoming increasingly popular with the emergence of sustainable business targets. Therefore it must ensure a reliable supply chain to ensure the availability of biomass sources. Biomass feedstocks include crop residues and other plantation product wastes such as oil palm, coconut, and sugarcane.

Solar Power Plants in the AQUA factory in Klaten

Meanwhile, PT. Tirta Investama-Aqua Factory, Klaten, inaugurated a rooftop solar power plant (PLTS atap) in 2020. The rooftop solar PV installed at the AQUA factory in Klaten consists of 8,340 modules of solar panels in four roof buildings covering an area of ​​16,550m2, with a peak power of around 350 watts per unit.

“This solar power plants can generate 4 GWh (Gigawatt hour) electricity per year which can supply 15-20% of electricity needs for operations while reducing 3,340 tons of carbon emissions per year. It was built starting in August 2019 and required 187,200 working hours carried out by 130 workers with zero accidents,” said I Ketut Muwaranata, Plant Director AQUA Klaten. 

Based on the latest IESR report entitled Indonesia Solar Energy Outlook 2023, the industrial and commercial sectors are the biggest drivers of solar power plant use, reaching up to 23 MWp in October 2022. In addition to sustainable business targets, especially for companies that are members of the RE100 coalition, renewable energy also reduces production costs. Innovative financing schemes, such as the zero-CAPEX offered by many solar PV developers, increase the attractiveness of rooftop PV mini-grid for industrial customers.

In the last three years, the growth of rooftop solar PV users in the industrial sector has increased, and when the 10 to 15 percent limit of capacity currently imposed by PLN continues, this trend will change and even decrease. This is unfortunate and does not support the various energy transition commitments from the government and companies, who cooperate in realizing Indonesia’s net zero emission.

PLTMH Lights Ngesrepbalong Villages’s Road

Based on the 2021 IESR study, the technical potential for micro-mini hydropower in Indonesia reaches 28.1 GW in all Indonesian provinces. In Central Java, the technical potential of micro-mini hydropower comes to 730.3 MW. If this potential is utilized optimally, it will increase the productivity of rural communities, thereby encouraging access to quality and affordable energy and improving the economy and people’s welfare.

The Micro Hydro Power Plant (PLTMH), Ngesrepbalong Village, Kendal Regency, was developed by the youth around 2020 and used for electricity at the Pucue Kendal Coffee shop, which is located on the northern slope of Mount Ungaran. In the process, the village youth got the state-owned company, Indonesia Power, to look at and help their businesses realize independent energy.

The PLTMH in Ngesrepbalong Village, Kendal Regency, has a capacity of around 1,000 watts and can turn on dozens of lights to illuminate the 200-meter road to the coffee shop and turn on the coffee processing equipment in the shop.

The Central Java Energy Exploration event was held to raise the issue of energy transition in Central Java based on the green industry and the Climate Village program. It also disseminates information regarding the urgency of the energy transition to the public, increasing exposure to the green industry and the Climate Village program in Central Java.

ISEO 2023 Launch: Encourage The Use of Solar Energy in Indonesia

Jakarta, October 27, 2022 – The use of solar energy in Indonesia needs to be accelerated. Clear rules, support for the solar PV component production industry, and capacity building in response to human resources needs in the solar energy sector also need to be prepared.

According to data from Indonesia Solar Energy Outlook (ISEO) 2023, the installed capacity of Solar PV has increased from 43.9 MWp in 2021 to 63.5 MWp in September 2022. This number is relatively small compared to other ASEAN countries, especially Vietnam, which already belongs to the Gigawatt order.

Senda Hurmuzan Kanam, Chair of Electrical Survey and Testing Center, MEMR, measures that the installed capacity of PLTS in Indonesia is still in its early stages, around 200 MW-400 MW. He stated that Indonesia needs a closer look at Vietnam, which can install about 10 – 20 GW of solar panels annually.

“Compared to Vietnam, Indonesia is far behind. We need to look for demand opportunities for renewable energy, especially solar PV. Currently, we have an incentive program for rooftop solar systems under a Sustainable Energy Fund (SEF) grant to attract more electricity consumers to use rooftop PV mini-grid,” Senda said at the Advancing G20 Solar Leadership event and the launch of the ISEO 2023 report organized by the Institute for Essential Services Reform (IESR) with support from Bloomberg Philanthropies, and in collaboration with the International Solar Alliance, and the Indonesian Solar Energy Association.

Similarly, a member of the National Energy Council (DEN), Herman Darnel Ibrahim, mentioned that solar energy development in Indonesia is still running slowly and relatively stagnant. He argues that Indonesia needed a more transparent plan to achieve the target of 23% of the renewable energy mix by 2025 by utilizing solar power.

“At least the Electricity Supply Business Plan (RUPTL) needs to show the solar energy program, all renewable energy clearly, and mention its potential locations. Currently, the existing RUPTL only discusses all renewable energy nationally and does not mention its possible areas in detail. Moreover, the government can calculate the new economy by location and network costs. So it’s better to build a resource inventory first,” Herman stated.

Although there are several challenges to accelerating solar energy, Andhika Prastawa, Chairman of the Indonesian Solar Energy Association (AESI), said solar panel production continues to grow under certain conditions. For example, Indonesia provides a clear incentive for consumers to use domestic solar panels rather than abroad. In addition, Andhika stated that there are two ecosystems to accelerate solar energy: the utilization ecosystem and the industrial ecosystem. 

“Ecosystem utilization, namely solar power, can be used in large or isolated systems. So we can extend access to electricity to all rural communities in the country. Then, the growth of this industrial ecosystem is closely related to its utilization ecosystem. To grow the industrial ecosystem, a market that can absorb solar modules is needed,” Andhika explained.

Meanwhile, Anthony Utomo, Deputy Chairperson of the Indonesian Solar Energy Association (AESI), explained that solar PV is necessary because of the decarbonization movement and the net zero emissions (NZE) approach. However, there are several challenges to intensifying solar energy.

“There are two challenges facing Indonesia. The user’s (customers) readiness to use solar PV, so we need consistent and massive education. It aligns with the National Energy Master Plan (RUEN) 2017, which became a shared consensus. It mandates a reduction in energy intensity, containing 30% of government buildings being encouraged to use solar PV, 25% luxury homes, and industrial downstream. Second, the competencies of solar PVinstallation personnel to develop the electrical system installation of the solar power plant. There is a need to provide solar preneurs or green MSMEs so that they can welcome the phenomenon of using rooftop solar PV in all regions, ” Anthony said.

The Institute for Essential Services Reform has consistently noted the progress and challenges of developing solar energy in the energy transition framework in the Indonesia Energy Transition Outlook (IETO). However, in 2023, IESR launched a progress report on solar power in Indonesia separately in the Indonesia Solar Energy Outlook (ISEO) 2023.