The LoI was signed by the ministry's Acting Secretary General, Dadan Kusdiana, and Hitachi Energy's Regional Head South Asia, N. Venu, here on Monday.
In a statement, he noted that the agreement aims to accelerate energy transition in Indonesia.
"The agreement between both parties focuses on knowledge transfer and joint studies for technology development solutions, particularly in the field of electricity infrastructure," he remarked.
After witnessing the signing, Minister of Energy and Mineral Resources, Arifin Tasrif, stated that electricity demand in Indonesia is projected to reach 1,942 terawatt-hours (TWh) by 2060.
To meet this demand, he said that the government has outlined a roadmap for constructing renewable energy-based power plants, with a total capacity of 700 gigawatts (GW) by 2060.
"To achieve this, we require support in terms of technology, industry, and infrastructure from all stakeholders," Tasrif said.
According to the minister, the biggest challenge in the development of renewable energy-based electricity lies in power infrastructure, given Indonesia's archipelagic nature with different energy sources on each island.
Therefore, the government has initiated a national super grid program to interconnect islands, particularly the larger islands in Indonesia.
"We are currently working on connecting the northern part of Sumatra Island to the eastern part of Java Island," he remarked.
Tasrif emphasized the need for collaboration and cooperation with national and international stakeholders, including Hitachi Energy, to expedite the program's implementation.
He said that Hitachi Energy is one of the companies possessing the technology and digital transformation capabilities necessary to accelerate the energy transition process.
Hitachi Energy CEO Claudio Facchin said that the company would support Indonesia in achieving its set targets, where accelerating energy transition plays a crucial role in achieving net zero emissions and addressing the climate emergency.
"We are delighted to strengthen our long-term relationship in Indonesia and support the government in achieving its ambitious targets," stated Facchin.
He added that the technical collaboration would focus on areas such as renewable energy integration, interconnectors, power quality, grid edge technologies, and digital solutions to address the complexities of supply and demand in the new electricity landscape.
"This collaboration is an excellent example of working together to achieve a common goal of advancing a sustainable energy future for everyone," he remarked.
Hitachi Energy has been present in Indonesia since 1980, providing support for electricity infrastructure in the country.
The company has also been involved in several energy transition projects in Indonesia, including the connection of the 220-megawatt (MW) Rantau Dedap geothermal power plant (PLTP) in South Sumatra, which supplies carbon-free electricity to the Sumatra grid.
Another project involves the implementation of grid edge solutions in several areas, including microgrids on Semau Island, Selayar, and Nusa Penida, contributing to meeting 20 percent of the electricity demand.
Related news: Indonesia pushes ASEAN collaboration on energy transition
Related news: BRIN studies palm oil waste use as renewable energy source
Translator: Benardy Ferdiansyah, Sri Haryati
Editor: Anton Santoso
Copyright © ANTARA 2023
