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As per the estimates of the Indonesian government, to develop new renewable energy power plants an investment of $1,043 billion would be required in order to achieve the target of carbon neutrality by 2060.
The new investment would produce 707.7 GW capacity of electricity. Currently, Southeast Asian countries rely on coal for generating power.
Dadan Kusdiana, Director-General of New Renewable Energy (NRE) at the Energy and Mineral Resources (ESDM) Ministry said that most of the investment would be spent on developing new renewable energy projects.
In order to achieve carbon neutrality by 2060, more private investment is needed in renewable energy in the country. Indonesia is the biggest exporter of thermal coal and one of the top emitters of greenhouse gases.
Only 12% of Indonesia’s energy sources are renewables, and 60% are coal. The use of RE has only reached 0.3% of the total capacity of Indonesia.
The clean energy capacity of the country is 3685 GW which includes 24 GW geothermal energy, 57 GW bioenergy, 60 GW marine energy, 95 GW hydropower, 155 GW wind power, and 3,295 GW of solar energy.
But clean energy of 10,889 MW only has been utilized which comprises 154 MW wind power, 194 MW of solar energy, 1,923 MW bioenergy, 2,186 MW geothermal energy, and 6,432 MW hydro energy.
In addition to renewable energy, a variety of new energy potentials are still little known, such as nuclear and hydrogen power.