With the support of competitive technology, we can emphasize the amount of investmentJakarta (ANTARA) - The potential and technologies for new and renewable energy will be the main capital for carrying out the energy transition program in Indonesia, Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, has said.
"Potential and technology for new renewable energy will be the main capital to implement the energy transition strategy towards net-zero emissions by 2060," the minister stated at the Indonesia Energy Transition Outlook 2022 event in Jakarta on Tuesday.
From the supply side, the energy transition strategy includes, among other things, the development of new renewable energy plants on a massive scale, with priority given to solar power plants (PLTS) and steam power plants (PLTU); the use of hydrogen; and the development of electricity storage technology, he informed.
Meanwhile, from the demand side, it includes the use of electric stoves, battery-based electric motor vehicles, the development of smart grid interconnections, smart meters, and natural gas networks, he said.
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The energy transition will require huge investment, Tasrif noted. The total investment in the electricity sector is projected to reach US$1 trillion by 2060, or US$25 billion per year, he said.
"With the support of competitive technology, we can emphasize the amount of investment," he added.
To encourage the energy transition, the Ministry of Energy and Mineral Resources has approved the PLN 2021-2030 Electricity Supply Business Plan (RUPTL), which supports greater renewable energy generation, he informed.
In the RUPTL, new and renewable energy generation capacity (EBT) has been pegged at 51.6 percent, or 20.923 MW, by 2030, he said.
Additionally, state-owned electricity giant PLN plans to retire 1.1 GW of steam power plants in Muara Karang, Tanjung Priok, Tambak Lorok, and Gresik by 2030 under the plan, he disclosed.
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PLN also plans to replace diesel-fired power plants (PLTD) with solar power stations (PLTS) to lower electricity production costs and bump up clean energy usage, he said.
The state firm will seek to conserve fossil fuels by co-firing biomass at PLTUs, the minister added.
Thus, the target for new renewable energy mix of 23 percent will be achieved by 2025, he said.
Minister Tasrif further said that the development of new renewable energy plants must take into account the supply and demand balance, system readiness, economy, and the country's ability to produce clean energy industries.
"The development of new renewable energy plants is projected to reduce emissions significantly, especially after 2040. It is also targeted that there will be no emissions from the fossil power plant after the contract completion in 2060," he added.
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Translator: Sugiharto, Azis Kurmala
Editor: Fardah Assegaf
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