Accelerating Renewables Investment in Indonesia - Shared Use of the Transmission Network_page-0001

Accelerating Renewables Investment in Indonesia – Shared Use of the Transmission Network

This publication underlines the urgency of accelerating renewable energy development in Indonesia in response to climate change, global targets, and the vision of Indonesia Emas 2045. The assessment study conducted by IESR shows a great opportunity for the domestic manufacturing industry to develop the production of solar modules, wind turbines, and batteries, which are essential to support the increase in national renewable energy capacity. The development of the domestic renewable energy manufacturing industry and supply chain is considered crucial to achieving economic growth, creating jobs, increasing energy security, and reducing the cost of renewable energy adoption.

The summary of the second text highlights that accelerating renewable energy development in Indonesia is essential for the cessation of coal-fired power plants, the net zero emission target, and green economic growth towards Indonesia Emas 2045. Although the target of adding 75GW of renewable energy capacity by 2040 requires private investment, there are major obstacles in the form of limited procurement options and geographical challenges. Joint Utilization of Transmission Networks (PBJT) or power wheeling offers a solution to open up private investment, especially from international companies that are members of RE100. With the right regulation, PBJT can be a win-win solution for all parties, helping companies achieve their renewable energy targets and providing long-term revenue for PLN.

Also check the RE100 Website at: LINK