Encouraging the Energy Transition in the Industrial Sector in South Sumatra

Jelajah Energi Sumatera Selatan

Palembang, 26 February 2024 – Energy is a basic need for individuals and communities with various purposes. Even though energy is something crucial in human life, not many people know or are critical of the energy sources (such as electricity) that they use every day.

On a larger scale such as the industrial sector, energy needs will be directly proportional to the productivity and economic contribution of the products produced. Somewhat different from energy use on a household scale, energy use in the industrial sector is relatively well monitored. In terms of awareness of energy sources, industry tends to better understand the energy sources they choose.

In an effort to promote the use of renewable energy, the Institute for Essential Services Reform (IESR) collaborates with the South Sumatra Province Energy and Mineral Resources Office to organize the South Sumatra Energy Exploration (Jelajah Energi Sumatera Selatan) activity for one week starting from Monday, February 26th, 2024 to Friday March 1st, 2024. This activity also embraces journalists as strategic partners in increasing public literacy regarding the energy transition.

The series of events began with an introductory workshop to provide participants with a basic understanding of energy and the energy landscape of South Sumatra, which acts as an “energy barn”. However, the dominant energy used is fossil energy i.e coal. Meanwhile, apart from fossil energy sources, South Sumatra Province also has a technical potential for renewable energy reaching 21,032 MW, yet only around 4.7% or 989 MW has been utilized.

Rizqi M. Prasetyo, IESR Sub-National Project Coordinator, explained that with the renewable energy potential of South Sumatra, projects can be utilized to bring benefits to the community.

“One of the (good practices, ed) that has been carried out in South Sumatra is the CSR initiative to use solar PV to drive land irrigation water pumps,” said Risky.

Secretary of the South Sumatra Province ESDM Service, Ahmad Gufran, said that his party was open to various ideas for greater use of renewable energy.

“We will continue to contribute to the development of the renewable energy sector to obtain clean, environmentally friendly energy. In the future, we hope that the use of clean energy can expand to all levels of society,” said Ahmad Gufan.

After receiving a general introductory workshop, the Energy Exploration journey began by visiting PT Pupuk Sriwidjaja (PUSRI). PT PUSRI is the first fertilizer producer in Indonesia and has been operating since the 1970s. Considering that the company’s operational period is quite long, production assets have also entered a period of revitalization. This moment is also used to switch to a cleaner type of technology for future operational periods.

VP of Environment at PUSRI Palembang, Yusuf Riza, explained that in an effort to be in line with the government’s agenda to reduce greenhouse gas (GHG) emissions, PT PUSRI is taking a number of steps, including implementing energy efficiency practices, using electric vehicles as operational vehicles in factory environments, and installing on-grid rooftop PV for office operations.

“Currently we have installed a rooftop PV of 110 kWp as an energy source in office buildings, and this year (2024, ed) we plan to increase our (PV) capacity by 100 kWp. So in total we will have around 210 kWp PV capacity,” said Yusuf.

When Geothermal Energy Illuminates the Land of Sriwijaya

Palembang, February 29, 2024 – On Thursday morning, the Jelajah Energi South Sumatra group arrived at the Geothermal Power Plant (PLTP) in Lumut Balai, Muara Enim, South Sumatra, owned by PT Pertamina Geothermal Energy Tbk (PGE), after a long and winding journey that took about 4 hours from Muara Enim City. The group was welcomed with cold weather due to the plant’s location on a hill. Despite challenging geographical conditions, PLTP Lumut Balai Unit I, located at least 2,055 meters above sea level, has become a silent witness to the wonders of geothermal energy.

Acting General Manager of PT Pertamina Geothermal Energy Tbk (PGE) Lumut Balai Area, Aris Kurniawan, explained that the company is committed to providing reliable, affordable, clean energy access to all Indonesian people. The Lumut Balai Unit 1 PLTP, which has an installed capacity of 55 MW, has been supplying electricity to around 55,000 homes in the PGE working area since 2019. Moreover, it has helped reduce greenhouse gas emissions by 300,000 tons of carbon dioxide (CO2).

“The Lumut Balai geothermal plant continues to move forward. By 2024, the target is to complete the construction of unit 2 of the Lumut Balai PLTP and proceed to the commissioning stage. Unit 2 has entered the EPCC (engineering, procurement, construction, commissioning) stage for the plant’s construction. In December 2024, it is expected to enter the commissioning phase until commercial operation (commercial on date). The project is still on track,” said Aris.

Aris stated that the Lumut Balai geothermal power plant is located in the Lumut Balai and Margabayur geothermal working areas (WKP), South Sumatra, with a mapped potential of 270 MW. With the development of the LMB Unit-2 Project, the installed capacity for the Lumut Balai Area will increase to 110 MW, equivalent to lighting 110,000 homes.

“Through our projects in Lumut Balai, we aim to mitigate climate change risks and support Indonesia in achieving 23% of the national grid mix from renewable energy sources by 2025. With a focus on innovation and efficiency, PGE is committed to reducing carbon emissions even further in the future to support Indonesia Net Zero Emission 2060,” said Aris.

Aris highlighted that, alongside the success of the energy transition through the optimization of geothermal development as a green energy source, PGE is also prepared to contribute to the carbon exchange initiative. This initiative serves as a tool that can encourage effective emission reductions and incentivize companies to participate in efforts to mitigate climate change.

“As of September 2023, PGE has contributed to the domestic carbon market by issuing 864,209 tons of CO2 equivalent (CO2eq), and this is the first geothermal carbon project on the carbon exchange,” Aris said.

Faricha Hidayati, Coordinator of the Industrial Decarbonization Project, Institute for Essential Services Reform (IESR) stated that among the geothermal working areas (WKP) established by the government, WKP Lumut Balai is one of the leading ones because it has geothermal potential of more than 300 MW, of which 55 MW has been operating since 2019 and other units are under construction and will be completed in December 2024. If this geothermal potential is properly utilized, Indonesia will be able to have 23.7 GW of clean energy and achieve net zero emissions by 2060, or sooner.

“Unfortunately, not many people are aware of this abundant potential, and many still choose energy from fossil fuels. Therefore, IESR in collaboration with the Energy and Mineral Resources Agency of South Sumatra held this Energy Tour to disseminate this information to the public. Hopefully, the Indonesian people will become wiser in using electricity and the like, and can then jointly oversee government policies in encouraging Indonesia’s energy transition to become greener and more sustainable,” Faricha explained.

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