Indonesia's Shift to Independent Power Plants: Private Investment in Renewable Energy
Key Ideas
  • Indonesia plans to expand power capacity by 71 GW over the next decade, relying more on private investors and focusing on transmission for renewable generation.
  • State utility PLN's 2025-2034 power supply plan includes 71 GW of new capacity and 48,000 circuit-km of transmission lines, aiming for 70% of new plants to use renewable energy sources like nuclear and hydrogen.
  • President Prabowo aims to retire all fossil-fuel-fired power plants, including coal, within 15 years, prioritizing domestic gas sales for electricity to meet growing demand and achieve energy self-sufficiency within five years.
  • The shift towards independent power plants marks Indonesia's move towards energy diversification and sustainability, with a positive outlook on renewable energy investment and future growth.
Indonesia is set to take a significant step towards energy diversification and sustainability with its new energy plan that focuses on increasing power capacity by 71 GW over the next decade. The country's Energy Minister, Bahlil Lahadalia, highlighted the government's intention to rely more on private investors for this expansion, with a key emphasis on enhancing transmission infrastructure for renewable energy generation. The strategic plan includes the construction of 48,000 circuit-km of transmission lines to support the integration of 71 GW of new power capacity, with a majority of the new plants designated for the private sector. President Prabowo's ambitious goal to retire all fossil-fuel-fired power plants, including coal, within 15 years demonstrates Indonesia's commitment to transitioning towards cleaner energy sources. The plan envisions a future where 70% of the new power plants will utilize renewable energy, potentially including hydrogen and nuclear power. This shift aligns with Indonesia's vision to prioritize domestic gas sales for electricity to meet the surging demand expected over the next decade. With renewables currently accounting for 15% of the energy mix, Indonesia aims to significantly boost this share through investments in renewable energy projects. Prabowo's optimism about achieving energy self-sufficiency within five years reflects the country's determination to reduce dependence on traditional fossil fuels and embrace sustainable energy solutions. The new energy paradigm not only sets the stage for a greener and more diverse energy portfolio but also signals Indonesia's readiness to attract substantial private investments in the renewable energy sector, fostering economic growth and environmental sustainability.
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