PLN Finalizes A Series Of Energy Transition Projects Towards NZE 2060

PT PLN (Persero) has decided to build various New Renewable Energy (EBT)-based power plants and a de-dieselization program for fossil generators in order to realize the support of the Just Energy Transition Partnership (JETP) in accelerating the energy transition program in Indonesia.

Main Director of PLN, Darmawan Prasodjo, who was represented by the Director of Transmission and System Planning of PLN Evy Haryadi said, this was a follow-up to the agreement of state leaders at the G20 Summit (Summit) in Bali in 2022 with a commitment to energy transition funding.

“In last year’s G20 the Indonesian government signed an agreement with JETP for the energy transition in Indonesia. As already mentioned, JETP is committed to providing funds for various green programs in its member countries,” said Evy at the opening of the ‘Equitable Energy Transition Investment Forum’ at the Auditorium of the PLN Head Office, Jakarta.

Evy said that PLN had designed short-term and long-term programs to achieve the Net Zero Emission (NZE) target in 2060. One of the short-term programs currently being carried out is a 1 gigawatt (GW) fossil-fuel power plant de-dieselization project and replacing it with solar-powered generators (PLTS).

“PLN plays an important role in Indonesia’s energy transition to clean energy. One of the strategic initiatives carried out by PLN as a concrete step towards net zero emission is the implementation of the de-dieselization program,” said Evy.

He explained that the main challenge for the de-dieselization program was the large number of power plants spread across remote areas. Therefore, PLN needs the right strategy to transition the power plant, both from an economic and technological standpoint.

Evy said that for the first phase, PLN plans to build 0.2 GW PLTS in 94 different locations. The project is estimated to require an investment of USD 0.7 billion. He added that PLN, through its sub-holdings, namely PLN Nusantara Power and PLN Indonesia Power, is actively looking for strategic partners to collaborate with in order to make the de-dieselization program successful.

“PLN realizes that the implementation of the de-dieselization program requires a large investment both in terms of finance and technological resources. Thus, strong collaboration between PLN, developers, financial institutions and other strategic partners is very important for the success of the de-dieselization program,” he said.

Head of JETP Secretary Edo, Mahendra revealed that for the past 6 months from February to August 2023, JETP is in the process of deliberating in detail a plan to allocate a fund commitment of USD 20 billion. The hope is that various energy transition programs that have been designed by countries that are members of JETP can be implemented immediately.

“We have laid the foundation. We are very grateful for the support and commitment given by the international community in the energy transition,” said Edo.

Edo said the de-dieselization program and the construction of a replacement EBT generator as carried out by PLN was a pilot program in JETP. For this reason, his party will provide full support so that the de-dieselization program can be successful.

“Let’s make this program a success. Because only by working together this project can be realized. The success of this project will become a showcase and reference for more energy transition programs in the future,” said Edo.