Energy Transition in the Midst of Coal Mining Siege

Samarinda, 7 September 2023 – The energy transition is an unavoidable inevitability. Current world trends show that the earth is getting hotter and to limit the rise in earth’s temperature, structured solutions are needed, including the energy transition, which involves various sectors and multi-stakeholders.

Society and communities are one of the key actors in the energy transition who can initiate the development of renewable energy to answer their energy needs. 

The Institute for Essential Services Reform (IESR) in collaboration with the Clean Affordable and Secure Energy for Southeast Asia (CASE) project and the Department of Energy and Mineral Resources (ESDM) of East Kalimantan Province held the ‘Jelajah Energi Kaltim’ activity to see directly and closer to the development of various initiatives for using renewable energy in East Kalimantan Province.

This series of activity began with a workshop, followed by visits to a number of places. On the first day of the visit, the group saw PV installation at the Pertamina Hulu Mahakam office, TPAS Manggar, and Kariangau Coal plants in Teluk Balikpapan.

The “Jelajah Energi Kaltim” trip continued on the second day starting with a visit to Mulawarman Village to see how the community uses livestock manure to make biogas. The biogas in Mulawarman village is home-sized biogas digester aid from the East Kalimantan Province Energy and Mineral Resources Service.

Mulawarman Village is in Tenggarong Seberang District, Kutai Kertanegara Regency, East Kalimantan. Coal mines surround Mulawarman Village. This condition made the residents of Mulawarman village ask to be relocated.

The East Kalimantan Regional Government is starting to pay attention to Mulawarman village to help the economy of Mulawarman village residents, one of which is by developing livestock groups and providing assistance with biogas installations.

In 2021, the East Kalimantan ESDM Service provided biogas installation assistance to stock farmer group (which had been surveyed) in the village, totaling 20 farmers. This means that people do not have to pay monthly fees for using this biogas.

People who use biogas immediately feel positive impacts, such as savings in costs for cooking fuel. Zaenal Abidin, a resident of Mulawarman Village, who is also a beneficiary of the biogas installation assistance, said that previously, to meet their cooking needs, their family could use up to 4 pieces of 3 kg LPG in one month. Now, he can cut his LPG needs to just 1 piece of 3 kg LPG.

“For everyday cooking (biogas, ed.) is enough. But if there are social events such as recitations, we still have to use LPG gas,” said Zaenal Abidin.

Zaenal also added that the cooking process using biogas fuel takes a little longer than using LPG. This biogas installation assistance is also accompanied by the transfer of knowledge about technology to the stock farmers. So that they can detect technical obstacles that could potentially arise from using this home biogas installation.

The Group continued their journey to Menamang Kanan Village, Muara Kaman District, Kutai Kartanegara Regency. The journey to Menamang Kanan Village takes almost 3 hours with heavy dusty road conditions which result in very limited visibility.

In the past year, residents of Menamang Kanan Village have succeeded in enjoying electricity from a centralized PV installation assisted by the East Kalimantan Energy and Mineral Office with a capacity of 87 kWp. This solar PV supplies basic electricity needs for 600 families in Menamang Kanan Village.

Previously, the residents of Menamang Kanan Village depended on the electricity supply from the diesel generator provided by one of the company’s CSR programs operating around the village. For the operation of this diesel generator, 70 liters of fuel is needed every day to provide electricity for 4 hours.

Zapir, Village Secretary of Menamang Kanan, explained that although electricity from solar PV has increased access to electricity in Menamang Kanan Village, its utilization is still limited to lighting and basic electronic equipment.

“So, it’s just for lighting, and maximumly a fan. It’s still not possible for TVs or refrigerators,” said Zapir.

Zapir hopes that the capacity of this communal solar PV can be increased in the future so that village residents can use electricity for productive activities that have the potential to bring economic value. Not limited to just lighting.

Assessing Solar Market in ASEAN Member State

Jakarta, 25 July 2023 – Southeast Asia has emerged as a focal point for both economic development, and energy growth. The increasing energy demand within the ASEAN region is to be expected to be met through the expansion of renewable energy. Notably, certain ASEAN countries have achieved noteworthy progress in renewable energy development, exemplified by Vietnam’s exponential growth in solar energy over recent years. 

Fabby Tumiwa, the Executive Director of Institute for Essentials Services Reform and the Chairman of The Indonesia Solar Energy Association said that ASEAN must establish strong cooperation in developing solar PV manufacturing capability.

“Southeast Asia countries must ensure affordable access to this technology by establishing a solar PV manufacturing and supply chain that includes silicon ingots, wafers, cells, and other components such as low-tempered iron glass, as well as the balance of system components such as inverters and controllers,” he said.

Fabby added that Southeast Asia has the potential to become a solar PV manufacturing hub, supplying both domestic and global demand. Currently, seven Southeast Asia countries already have manufacturing capacity in various stages, with a total annual capacity of 70 GW of solar module production, with Vietnam supplying half of this capacity. 

Monika Merdekawati, research analyst for sustainable renewable energy development, ASEAN Centre for Energy (ACE) during the ASEAN Solar Summit 2023 explained that while solar energy adoption in ASEAN is on the rise, the pace of progress is insufficient to accelerate the energy transition. Vietnam’s remarkable strides in augmenting its solar capacity have been associated by diversification efforts in its renewable energy development plan in its PDP8 (Vietnam’s energy planning).

“It’s similar to Thailand who started to look for biomass development in its priority program plan,” said Monika.

She further highlighted the necessity for Indonesia to devise innovative strategies to attain its goal of achieving a 23% renewable energy mix in 2025.

Within the context of Indonesia, the state-owned utility company PT PLN heavily relies on the 2021-2030 RUPTL (Electricity Supply Business Plan) famously recognized as “green RUPTL” to expedite its renewable energy endeavors. Warsono, the EVP for electricity System Planning, PT PLN on the same occasion said that PLN aims to incorporate5 GW of renewables by 2030.

“The main challenge to deploy renewables, particularly solar, is the fulfillment of local content requirements of the PV component. It means we need to grow the local industry for solar PV components,” he said. Furthermore, PLN is committed to ensuring equilibrium between energy supply and demand of energy.

Mohammad Nazri bin Mizayauddin, Chief Strategy Officer Sustainable Energy Development Authority, Malaysia shared his view on Malaysia strategy to enhance renewable energy penetration.

“People usually look at the large-scale ground mounted solar PV, but now let’s realize the other potential in the solar rooftop. The rooftop itself is an asset,” he said.

According to Nazri, Malaysia has been facing issues related with the energy subsidy therefore the Government must make sure that the market is mature enough to slowly detach the subsidy.

Eka Satria, Director and CEO of Medco Power Indonesia presented the indispensable correlation between growth of the solar PV component industry and expanding market demand. He stressed the importance of compiling and implementing a comprehensive roster of potential projects to instill investor confidence. 

“To accelerate solar energy deployment, we need a strong PV industry in Indonesia. To grow the PV industry a long list of committed projects to guarantee the investors that their money wouldn’t be lost,” Eka explained.

Eko Agus Nugroho Director of Machinery and Agricultural Machinery Industry, Ministry of Industry agreed that the solar cell technology is advancing rapidly, urging Indonesia to accelerate its pace in keeping up with the advancement.

“There are 21 local producers making solar modules currently and the total capacity is still below 500 WP. The ministry wants to map the capability of the (solar) industries to fulfill the need from the PLN and other developers,” he said. 

Eko also revealed plans for the upcoming announcement of a consortium dedicated to local solar industry manufacture in the ensuing months.

Comparing Each Technology and Average Electricity Generation Cost Fairly

Jakarta, 24 March 2023 – The development of various renewable energy generation technologies continues to experience developments which have an impact on the price of the electricity produced. Apart from technology, several types of power plants are also influenced by various factors, including fuel commodity prices, as well as the geopolitical situation.

In opening remarks for the launch of the report and tool for calculating the levelized cost of electricity (LCOE) and levelized cost of storage (LCOS), Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) said that there are two contradictory conditions between renewables and fossil generators.

“Almost all renewable energy generators have decreased prices. Solar PV decreased by 90% and wind decreased by around 80%. Until now, the price of fuel or fossil fuels continues to be influenced not only by costs, but also by geopolitical conditions. Renewable energy power plants will not be affected by fuel prices, because they do not use fuel,” he said.

The author of the report “A 2023’s Update on The Levelized Cost of Electricity and Levelized Cost of Storage in Indonesia” His Muhammad Bintang explained similar findings. According to him, in Indonesia, electricity from coal-fired power plants is believed to be cheaper than electricity from renewable energy plants, even though there are many factors that cause this to happen.

“The price of coal electricity is cheap because of the Domestic Market Obligation (DMO) policy. This policy makes the PLTU have a relatively cheap and stable generation cost,” said Bintang.

Bintang added that without the DMO policy, the price of electricity from coal-fired power plants could increase up to three times when global coal prices rise.

Another policy that will affect the cost of energy generation is the implementation of carbon economic values such as carbon caps and carbon taxes. The application of carbon economic value needs to be ensured to be effective by ensuring a competitive carbon quota (cap) or price. Determining the appropriate carbon economic value is expected to reduce the use of fossil energy and encourage the development of renewable energy.

On the same occasion, Mustaba Ari Suryoko, Coordinator of Services and Oversight of Various NRE Businesses, Directorate General of EBTKE, Ministry of Energy and Mineral Resources, explained that changes in the movement of renewable energy prices at the global level actually occurred in Indonesia.

“We identified that the price reduction was relatively related to technology. For example in solar and wind, biomass is related to feedstock, and some are stagnant such as hydro,” Mustaba said.

Mustaba explained, the Ministry of Energy and Mineral Resources is currently drafting regulations equivalent to laws for the development of renewable energy. Previously in Presidential Decree No. 112/2022 is mandated to carry out price evaluations. The existence of LCOE and LCOS calculating devices will assist in carrying out this evaluation, of course by adjusting the assumptions used as parameters.

One of the key actors in the development of renewable energy and the energy transition in general is PLN, which acts as an offtaker of the electricity generated by the generator. The development of technology, which has an impact on the price of electricity, has not escaped PLN’s attention.

As stated by Cita Dewi, EVP of New and Renewable Energy at PT PLN, the trend of decreasing electricity prices from renewable energy plants is included in PLN’s monitoring.

“PLN welcomes this, because we realize that to make the energy transition we need a lot of EBT generators,” said Cita.

Apart from generators, PLN also has the mandate to build a renewable energy ecosystem and ensure that renewable energy development projects in the RUPTL are implemented properly.

Looking deeper into the technology side, the decline in solar energy prices is one of them influenced by the increase in the efficiency of solar modules.

“The increased efficiency of solar modules increases solar energy production without increasing costs. In addition, the development of mechanical technology such as nano cells can also reduce production costs or selling costs. This will significantly reduce the cost of solar modules,” explained Andhika Prastawa, Main Engineering Researcher at BRIN.

Evvy Kartini, founder of the National Battery Research Institute, also reminded about the important role of storage or battery technology in the energy transition ecosystem.

“The cost of this energy transition will depend on the battery. Take the example of an electric vehicle, 45% of the price of an electric vehicle is the price of the battery, so if the battery is cheap the price will go down.”

In addition to technological developments, the regularity of the auction schedule is also an important factor in ensuring the development of renewable energy.

“Regarding the risks of developing PLTS in Indonesia, there are certainly risks at every stage. At the development stage, we expect certainty, like providing information about auction schedule and capacity in one year as is done in other countries,” said Refi Kunaefi, Managing Director of Akuo Energy Indonesia.

Aligning the Electricity Supply to the Paris Agreement Pathway

Jakarta, 24 November 2022 – Electricity has become a primary need as well as an economic driver for everyone. The demand for electricity is predicted to continue to increase both from the industrial sector and from the residential sector. In order to meet this demand and reduce emissions in the energy sector, planning with greater use of renewable energy should be designed in the RUPTL (Electricity Supply Business Plan).

In the 2021-2030 RUPTL, PLN plans to increase renewable energy capacity by up to 51.6%. Unfortunately, the amount of this target is not enough to meet the target of the Paris Agreement, which is to limit emissions and global temperature rise at 1.5 degrees Celsius.

Akbar Bagaskara, IESR’s power system researcher, during the launching of the study report “Enabling High Share of Renewable Energy in Indonesia’s Power System by 2030” explained that as a country ranked in the top 10 largest emitters in the world, Indonesia has a responsibility to reduce its emissions systematically.

“Electrification in all sectors ranging from industry, transportation and other sectors as well as the maximum utilization of renewable energy is the main key to reducing Indonesia’s emissions and then pursuing the Paris Agreement target,” Akbar explained.

Akbar explained that the renewable energy capacity that can be added to the system reaches 129 GW consisting of 112.1 GW of solar energy, 9.2 GW of water energy, 5.2 GW of geothermal energy, 1.5 GW of wind energy, and biomass of 1 GW.

Akbar also added that this study was a follow-up of the “Deep Decarbonization of Indonesia’s Energy System” study launched by the IESR in 2021 which looked at the possibility of Indonesia’s energy system achieving net zero emission (NZE) status by using 100% renewable energy in 2050.

Kamia Handayani, PT PLN’s EVP Energy Transition and Sustainability, explained that the 2021-2030 RUPTL is indeed not suitable for pursuing the Paris Agreement target.

“RUPTL is indeed not fully aligned with the Paris agreement because there is still coal involved. We (PLN) have several scenarios to reach NZE, based on PLN’s NZE roadmap until 2060, CCS can be a technology that is utilized. Yet, we must see future technological developments to meet the NZE target,” said Kamia.

Elrika Hamdi, Energy Finance Analyst at IEEFA, added that in order to align with the Paris Agreement targets, there needs to be one agency that monitors the implementation and development of renewables.

“There needs to be an agency that ensures development targets and renewable procurement which, for example, is issued by the government in the electricity system so that curtailment can be anticipated,” said Elrika.

Ikhsan Asa’ad, Chairman of the Executive Board of PJCI, highlighted the importance of building a strong domestic renewable energy industry such as solar to meet ambitious renewable energy targets.

“Currently, the price of renewables is still relatively more expensive than PLN’s electricity, but the more massive the use, the more competitive the price is expected to be. Local industry must begin to be prepared to meet the increasing demand for renewable energy components in the country,” he emphasized.

Eko Adhi Setiyawan, Lecturer, University of Indonesia, said that there is a need for demand management to mobilize customers. In addition, it is necessary to translate the Paris Agreement terminology into more concrete targets.

Coal-Fired Power Plants Retirement Commitment Needs to be Followed Up Immediately

press release

Raditya Wiranegara (right), IESR Senior Researcher, explained the findings of the “Financing Indonesia’s coal phase-out report” at the Indonesia Sustainable Energy Week (ISEW) 2022

Jakarta, 11 October 2022 – The government’s decision in Presidential Regulation (Perpres) 112/2022 to no longer build new coal-fired power plants, and to limit the operation of all coal-fired power plants to 2050 at the latest, needs to be supported by political, financial, and social readiness.

A study by the Institute for Essential Services Reform (IESR) together with the University of Maryland, to comply with the Paris Agreement to limit the increase in average temperature below 1.5 degrees Celsius, Indonesia can immediately retire 4.5 GW of coal-fired power plants within a period 2022-2023.

“The benefits that can be achieved from the early retirement scenario of the coal-fired power plants are about 2-4 times greater than the costs incurred to retire the coal-fired power plants,” said Raditya Wiranegara, Senior Researcher at IESR at Indonesia Sustainable Energy Week (ISEW) 2022.

In addition, he also explained that the accelerated retirement of coal-fired power plants could prevent deaths from reaching 168 thousand people by 2050, and the total health cost savings that could be obtained would be around USD 60 billion by 2050.

Furthermore, Raditya explained that most of the costs needed for coal-fired power plants retirement include the cost of abandoned assets with two-thirds related to the retirement of IPP’s coal-fired power plants.

While waiting for all coal-fired power plants to be fully retired in 2045, Raditya continued, the government can carry out flexible coal-fired power plant operations to make room for renewable energy to enter Indonesia’s energy system.

Koben Calhoun, Principal Carbon Free Electricity, Global South Program, RMI added by citing an IESR study which states that the decarbonization of the energy sector in Indonesia in 2050 will take as much as USD 25 billion/year until 2030 and USD 60 billion/year until 2050 for investment into renewable energy, electrification, and supporting infrastructure.

“Three pillars approach to financing coal transition, recovering capital from the assisting asset and other entities, and refining the existing assets there will be an opportunity to reinvest in clean energy and other tech allowing low carbon power systems and finding support for just energy transition.,” explained Calhoun.

According to him, Indonesia can lead an ambitious energy transition and demonstrate financial mobilization with ambitious government commitments, and leadership towards energy transition platforms and funds has a clear early retirement roadmap preceded by the implementation of pilot projects and has a blended financial structure. finance) to lower capital costs and mobilize finance for the energy transition. Ensuring funding needs as well as the interests and goals of potential investors, who tend to finance renewable energy and no longer want to finance coal projects, are important to be able to open the funding faucet.

Architrandi Priambodo, Senior Energy Specialist at the Asian Development Bank also revealed that early retirement of coal-fired power plants, in addition to significantly reducing greenhouse gas emissions, will also reduce overall generation costs in the long term.

He explained that this is one of the goals of the Energy Transition Mechanism (ETM) program to accelerate the termination or repurposing of coal-fired power plants, especially parts of the power plant assets that can be utilized further, such as transmission and substations.

“In the ongoing ETM feasibility study, financial analysis and transaction structures are also discussed, which include commercial and legal structures to efficiently terminate the coal-fired power plants assets,” said Architrandi.

Melli Darsa, Senior Partner at PwC Indonesia, on the same occasion said that if political conditions are favourable, early retirement plans for coal-fired power plants need to be followed by implementing regulations related to the technical aspects of early retirement for coal-fired power plants to provide higher legal certainty.

“The government has gone in the right direction, in terms of making it very clear that the international commitment is based on strong high-level regulation being on the president’s regulation, the ministers are supposed to go and do a follow up on this. However there is still reluctance of the board to take risks to decide because it might be the right thing, but if there are no clear roles, instead it is assigned,” explained Melli.

ISEW is held in collaboration with the Indonesia Clean Energy Forum (ICEF), the Institute for Essential Services Reform (IESR), and Clean, Affordable, Secure Energy for Southeast Asia (CASE). CASE is a cooperation program between two countries: Indonesia – Germany (Directorate of Electricity, Telecommunications and Information Technology, Ministry of National Development Planning/Bappenas, and funded by the Ministry of Economy and Climate Action of the German Federation Government). Previously, discourse on energy transition in Indonesia was routinely held at the Indonesia Energy Transition Dialogue (IETD), which this year participated in ISEW 2022. First held in 2022, ISEW will last for 5 days from 10-14 October 2022 with the theme Reaching Indonesia’s Net Zero Energy System: Unite for Action and Strategy. All levels of society can participate in this activity for free on isew. live.

Learning from the US How to Seize the Climate Opportunity

Jakarta, 13 September 2022 – To combat the climate crisis, our action today will determine the economic, and sustainability of mankind in the long run. The IPCC report has already told us that the remaining time we have to hold the global temperature at 1.5 degree Celsius is limited. Global commitment to address climate change has been pushed through international forums. 

After rejoining the Paris Agreement during the Biden – Harris administration, the United States (US) is actively encouraging global citizens to tackle climate change through policies and strategic planning. Recently, the US just released new regulations i.e Inflation Reduction Act (IRA) to boost the utilization of clean energy technology. The US’s target is to reduce 50-52% of GHG emissions by 2030 and use 100% clean electricity by 2035 before being net-zero emission in 2050. 

Nathan Hultman, director of the Center for Global Sustainability University of Maryland, during a public lecture session in collaboration with the Office of the President of Indonesia, and the Institute for Essential Services Reform said that he believes that we can achieve the 1.5-degree level.

“We are surely making some progress and are still on the 1.5-degree track. But our work is not done. We have more work to do especially through policy,” Nathan said.

Nathan emphasizes the need for a multi-stakeholder approach in addressing climate emergencies through the energy transition. He explained that the national government is an important stakeholder in determining the energy transition. However, in energy transition we cannot rely solely on the national government since the idea of energy transition must be embraced by many actors including the sub-national level government and even the private sectors.

“For example, in the US during the Trump administration there are not so many things (climate policy) happening, but there is some progress at the sub-national level that pushes national policy in the upcoming administration,” he explained.

Realizing that most democratic countries have similar stakeholders, this ‘All in’ approach can be duplicated in other countries. Every country is different, but each of us has the opportunity to do more.

Playing a strategic role as a G20 leader this year, Indonesia has a critical point in achieving global climate goals. By proposing a more ambitious climate pledge, accelerating renewables into the system, and adopting EVs in massive numbers, Indonesia can inspire other countries to show concrete action in addressing the climate crisis.

Every country needs to figure out its strategic way to do the transition but learning from others is a need indeed. Global commitment to support funding for energy transition must be fulfilled to assist developing countries in running the transition smoothly.

Hageng Nugroho, the Executive Staff Office of the President of Indonesia emphasizes the role of global collaboration to achieve the net zero target.

“Indonesia pledge to be net zero on 2060, and in achieving it we encounter several obstacles from technology till funding. There are at least four things that must be done by a country to avoid the harsh effects of the climate crisis. First, comply the NDC target, encourage citizen and potential stakeholder to participate’, strengthen the global partnership, and boosting the green economy development,”

Hageng added that the most important point is ensuring that the commitment is manifested into action rather than staying at policy level only.

Welcoming the Gigawatt Order of Solar Energy with Readiness of Qualified Human Resources

Jakarta, 20 April 2022– One of the essential things in building a solar PV ecosystem in Indonesia is the readiness of its human resources. Measuring Indonesia’s readiness to enter the gigawatt order, the Institute for Essential Services Reform (IESR) in collaboration with the Ministry of Energy and Mineral Resources (ESDM) held a webinar entitled “Solar Energy Gigawatt Order, Is Indonesia Ready?” in the Indonesia Solar Summit 2022.

The General National Energy Plan (RUEN) targets a solar PV capacity of 6.5 GW in 2025. It opens up opportunities for high solar PV demand. RUEN also mandates the use of solar cells at a minimum of 30 percent of the roof area of ​​all government buildings, and 25 percent of the roof area of ​​luxury houses.

Anthony Utomo, Deputy Chairperson of the Indonesian Solar Energy Association (AESI), views that this opportunity needs to be met with the availability of local workers to provide, install, maintain and maintain solar PV. 

“AESI in the solarpreneur program collaborates with universities so that training (related to rooftop solar PV) is available to the community, the installation can be served properly, and in the end it can create new jobs,” explained Anthony.

Ratna Muntiowati, Marketing Director, TotalEnergies Renewables DG emphasized that seeing the development of solar PV getting more and more widespread in Southeast Asia, therefore, in the near future, the solar PV market will not only be in Indonesia. Moreover, she stated that the curriculum of renewable energy should be applied in all science majors.

“Tantangan yang kita hadapi dalam instalasi di atas bangunan ialah struktur bangunan tidak terlalu kuat. Hal ini bisa juga dimasukkan ke dalam kurikulum pendidikan.Bahkan saat ini, Standar Nasional Indonesia (SNI) untuk civil construction, sudah memasukkan ketentuan untuk instalasi solar panel. Ini yang bisa diimplementasikan oleh lembaga pendidikan. Sehingga saat ada instalasi atau desain pabrik baru (untuk PLTS atap), sudah diperhitungkan sesuai SNI,”ujarnya.

Daniel Pianka, Universitas Kristen Immanuel (UNKRIM), Yogyakarta sepakat bahwa pelatihan dan edukasi energi terbarukan memainkan peran penting dalam membangun SDM yang berkualitas. Berdasarkan pembelajaran dari pemasangan 10 kWp panel surya di universitasnya, Daniel mengungkapkan bahwa kemampuan SDM yang mumpuni dalam melakukan instalasi panel surya turut menentukan keawetan sistem panel surya yang digunakan.

“Instalasi yang belum baik misalnya menyambungkan kabel hanya dengan isolasi (perekat) akan membuat kabel mudah terbakar jika ada daya yang tinggi. Instalasi yang berkualitas akan membuat sistem surya panel bisa digunakan lebih lama,” tuturnya.

Lebih lanjut, Daniel menjelaskan UKRIM telah membangun program energi. Program ini bertujuan untuk melatih mahasiswa, yang dominan berasal dari daerah 3T (Terdepan, Terpencil dan Tertinggal) untuk menjadi teknisi, melakukan instalasi yang rumit dan merawat PLTS.

“Program ini diharapkan mampu menghasilkan SDM yang terlatih dan termotivasi untuk terjun dalam sektor energi terbarukan, menciptakan banyak proyek energi berkelanjutan, gaya hidup yang lebih baik dan emisi karbon yang rendah,” tukasnya.

Di sisi lain, Eng Purnomo Sejati, Kepala SMK Ora et Labora, BSD menuturkan pihaknya senantiasa beradaptasi terhadap dinamika sektor energi di Indonesia. Semula, sekolahnya dirancang untuk memenuhi kebutuhan SDM pembangunan PLTU 35 GW. Namun, penyesuaian target baru terkait energi terbarukan maupun rencana moratorium PLTU, mendorong lembaga pendidikan yang ia pimpin bertransformasi menuju energi terbarukan.

“Sejak tahun lalu, kami bermanuver untuk membuka area lain seperti energi terbarukan dan surya. Kami sudah melakukan penetrasi dan bermitra dengan perusahaan terkait. Kami juga ingin mengembangkan kendaraan listrik, industrial internet of things (IIOT), dan perawatan gedung dan fasilitas. Bidang ini kami lihat yang akan sustain ke depan,” papar Purnomo.***

“The challenge we often face is the improper rooftop structure that is weak for solar PV installation. This issue can also be included in the education curriculum. Now, the Indonesian National Standard (SNI) for civil construction has included provisions for the installation of solar panels. Educational institutions can take this opportunity to implement. So when there is an installation or a new factory design (for rooftop solar PV), it has been calculated according to SNI,” she said.

Daniel Pianka, Immanuel Christian University (UNKRIM), Yogyakarta agreed that training and education on renewable energy play a significant role in shaping the quality of human resources. Based on lessons learned from the installation of 10 kWp solar panels at his university, Daniel revealed that the ability of qualified human resources to install solar panels also determines the durability of the solar panel system used.

“Improper installation, for example connecting cables only with adhesive tape will lead to burning cable, as comes the high power. A quality installation will make the solar panel system last longer, “he said.

Furthermore, Daniel explained that UKRIM had built an energy program. This program aims to train students, who predominantly come from 3T areas (frontier, remote, and left behind area) to become technicians, perform complex installations and maintain solar PV.

“This program is expected to produce trained and motivated human resources to engage in the renewable energy sector, creating many sustainable energy projects, better lifestyles, and low carbon emissions,” he said.

On the other hand, Eng Purnomo Sejati, Principal of Ora et Labora Vocational School, BSD said that his party always adapts to the dynamics of the energy sector in Indonesia. Initially, the school was designed to meet the human resource needs of the 35 GW coal-fired power plants construction. However, the adjustment of new targets related to renewable energy, as well as, the plan for a PLTU moratorium, has encouraged the educational institutions he leads to transform into renewable energy.

“Since last year, we have maneuvered to open up other areas such as renewable energy and solar. We have penetrated and partnered with related companies. We also want to develop electric vehicles, industrial internet of things (IIOT), and maintenance of buildings and facilities. We look at this field that will be sustainable in the future, “said Purnomo.

Showing Leadership in G20, Indonesia Needs to Increase Solar PV Development

JAKARTA, 20 April 2022 – Carrying the energy transition as the main topic of Indonesia’s presidency at the G20, Indonesia needs to show its leadership in pursuing a more massive renewable energy capacity, especially solar energy. Indonesia can also learn from the experiences of the G20 countries in encouraging the growth of solar energy and accelerating the spread of solar energy.

The Ministry of Energy and Mineral Resources of the Republic of Indonesia and the Institute of Essential Services Reform (IESR), in collaboration with BloombergNEF and the International Solar Alliance (ISA), held a workshop to take lessons from G20 countries in encouraging the application of solar power relevant to developing countries. The workshops were also not limited to policy frameworks, fiscal and financial instruments, market readiness, and human resource development.

Ali Izadi – Najafabadi, Head of Research APAC, BloombergNEF, expressed his optimism that Indonesia has the potential to accelerate the energy transition.

“Some analysts say Indonesia lags behind other G20 countries in renewable energy, especially solar power, but I believe Indonesia can catch up. Indonesia has many opportunities to reform policies or special regulatory measures focusing on improving the energy economy and the environment,” said Ali.

In line with Ali, Rohit Garde, Senior Associate for Solar Energy Financing at BloombergNEF, said that BloombergNEF measures state policies in the electricity sector and carbon policies. For example, Germany and England have 84% and 83%, respectively, which indicates that both countries have good procedures for PV mini-grid. Meanwhile, the Levelized Cost of Electricity (LCOE) of PV mini-grid in India, China, UAE, and Chile is the lowest due to high levels of solar radiation and large-scale PV mini-grid development. Meanwhile, the LCOE of PV mini-grid in Indonesia is the highest due to its small scale and high cost of capital.

“Indonesia must increase its ambitions by revising regulations and removing development barriers,” added Rohit Garde.

One of the important issues in Indonesia’s leadership in the G20 is the energy transition. Yudo Dwinanda Priadi, Expert Staff to the Minister for Strategic Planning at the Ministry of Energy and Mineral Resources, said that the power plant plan already has an Electric Power Supply Business Plan Electricity Supply Business Plan (RUPTL) 2021-2030. A greener RUPTL is a cornerstone of achieving zero carbon by 2060.

“Solar Power Plants (PLTS) have the largest optimization in Indonesia and will reach 4,680 MW by 2030. Therefore, solar energy has the most abundant potential. In addition, the cost continues to decline, and the rapid development of PV mini-grid technology has made solar power generation a priority. The development of rooftop PV mini-grid also includes better implementation and incentives for people who want to install rooftop PV mini-grid. The government has issued the Minister of Energy and Mineral Resources No.26/2021, and the rooftop PV roadmap is in the process as a National Strategic Program (PSN),” said Yudo.

On the other hand, Fabby Tumiwa, Executive Director of IESR and General Chair of the Indonesian Solar Energy Association (AESI), said solar energy development in Indonesia is relatively slow with several obstacles.

“In 2021, only 0.001 percent of its technical potential will be implemented. However, rooftop solar power generation has continued to increase in the last three years, and that is due to the support from government regulations. RUPTL 2021 is a signal to increase five times to 4.7 MW, and there are also other projects such as exports to Singapore, Riau Islands, and Batam. Therefore, this project has the potential for massive solar energy development,” said Fabby Tumiwa.

Fabby also added several reasons for the obstacles to the energy transition in Indonesia, such as the Domestic Component Level (TKDN).

“Problems in project development such as land and regulations on the Domestic Component Level (TKDN); existing projects require solar module devices from 40% to 60%, and this has not been met by industry in Indonesia and has not received financial assistance from the state; negotiations are quite long while other countries tend to be faster. The Vietnamese government has strong political will and commitment, regulation, implementation, and incentives for tariff policies related to net metering. What is also important is the policy certainty and transmission of the State Electricity Company (PLN),” said Fabby.

Kanaka Arifcandang Winoto, the Senior Business Developer from Mainstream Renewable Power, explained how Indonesia needs to accelerate to meet the renewable energy mix target of 23% in 2025.

“Indonesia is the largest energy consumer in ASEAN, accounting for almost 40 percent of ASEAN’s total energy use. With the significant potential of solar, geothermal, wind and hydropower resources, Indonesia is well-positioned to develop in a low-carbon energy system,” he said.

According to Kanaka, Indonesia is a key player in achieving 1.5℃, so cooperation with all stakeholders is needed to identify a national roadmap for realizing economic growth and climate security.

Dyah Roro Esti, Member of the DPR, Commission VII, explained that his party is open to public input, especially on renewable energy policies that are being discussed in the DPR RI.

 “Data from DEN, Indonesia must optimize 2.5 GW, and each area has potential, both solar and wind. Therefore, it is necessary to have the motivation and political will to cooperate with local governments in optimizing and realizing this potential. The House of Representatives (DPR) is working on the New Renewable Energy (EBT) Bill and will be open to suggestions. However, the EBT Bill (RUU) is still under discussion,” explained Dyah Roro.

On the other hand, regarding policies at the regional level, Ngurah Pasek, Head of the Sub-Division of Environment and Regional Development, Bappedalitbang Bali Province, added that Bali has implemented Perda 29 of 2020 concerning the General Plan of Regional Energy (RUED) whose derivative is Pergub 45 of 2019 about Bali Clean Energy.

“Installation to regencies and cities in Bali Province, which currently has reached 8.5 MW. The target of the Bali Provincial Government regarding budget refocusing is how the installation of solar rooftop solar panels in offices or companies can run well,” he said.

The development of rooftop solar power plants is also happening in Central Java. Nathan Setyawan, Sub-Coordinator of Natural Resources and Environment, Central Java Regional Development Planning Agency, explained some progress in supporting renewable energy in his area.

“Central Java is the only province that has developed and integrated economic recovery and the use of renewable energy. In 2021, we will encourage not only provincial governments but also regents and mayors and the private sector to implement rooftop solar power plants.”

He emphasized that increasing public awareness and support from the Ministry of Energy and Mineral Resources would encourage the use of communal solar power plants in remote areas. In addition, Nathan hopes that the availability of affordable clean energy supporting technology will help develop the local renewable energy industry.

“Hopefully, there will be a mini silicon valley to develop new renewable energy-oriented industries,” he added.***

Boosting Confidence for Solar Investors in Indonesia

Jakarta, 7 April 2022 – Located on the equator, Indonesia is blessed with abundant yet (unfortunately) untapped solar energy potentials. The Institute for Essentials Services Reform’s study titled, “Beyond 207 Gigawatts: Unleashing Indonesia’s Solar Potential” shows that based on land suitability there are 3 – 20 TWp solar potentials that may generate power up to 4,7 – 27 TWh annually. The huge potential is sadly not followed by proper utilization. The MEMR noted that until the end of 2021 total PV capacity in Indonesia is only around 200 MW. 

Fabby Tumiwa, the Chairman of Indonesia Solar Energy Association and the Executive Director of the Institute for Essential Services Reform, during the South Korea Renewable Energy Investment Forum, said that the solar market outlook looks promising especially since the end of 2021 when PLN announced its recent Business Plan (RUPTL) in which it gives spacious slot for renewable energy.

“Solar becomes government focus in RUPTL to reach the 23% RUEN target in 2025 as well the net-zero emissions in 2060 or sooner. Approaches on various types of PV i.e floating, and rooftop need to be done through the regulation improvement,” Fabby said.

Eka Satria, CEO of Medco Power Indonesia, shares his perspective on the current energy transition happening in Indonesia. He believes that the success of energy transition should be driven by policy. 

“Energy transition needs a different environment. We cannot just leave it to the market mechanism where people choose what kind of energy they want to have. Especially in the beginning, policy-driven action is needed,” Eka explained.

Eka added that the best practice in countries that have started the energy transition early is always initiated by the Government that sets up a policy to drive both energy providers and energy consumers to shift to renewable energy.

Byeongwoo Jeon, Managing Director of Global Business Department KEPCO KDN, shares his appreciation that renewable energy development in Indonesia is gaining traction yet a set of challenges still follow. 

“Land acquisition is our number one challenge. In the area where energy demand is high, we usually experience land shortages to install solar PV,” he said.

Jeon also highlighted the complex process to get financing for renewable energy projects. The current regulation such as the required local content and the process to get PPA (power purchase agreement)happening in the lengthy process makes renewable projects hard to get financing.

Fabby Tumiwa added that besides the PPA process that should be shortened, consistent regulation is also important to give investors and the business sector confidence in planting their capital in Indonesia’s renewable energy projects. 

“PLN must also implement the recent Ministerial Regulation number 26/2021 about rooftop solar customers to accelerate rooftop PV adoption,” he said.

The current MEMR’s regulation no 26/2021 about rooftop solar PV contains some improvements from the previous MEMR regulation no 49/2018 such as the 1:1 export-import tariffs, a longer reset period, and a shorter period to obtain approval for construction, but is not yet implemented by PLN though it is officially released by the Ministry of Energy and Mineral Resources as per January 2022.