Indonesia pushing for ‘more affordable’ renewable energy

Director for Electricity at the Energy and MIneral Resources Ministry Jisman P. Hutajulu (Photo: RambuEnergy/RK)

JAKARTA (RambuEnergy.com) – The Indonesian government is calling for industry players and investors to develop “more affordable” renewable energy resources in Indonesia as a move to accelerate the development of renewable energy in the country.

The development of renewable energy sector in Indonesia has been slow, partly due to higher price of renewable energy costs. Currently, the renewable energy resources in the country’s energy mixed remain low, blow 10%. Large chunk of the energy use come from coal, gas and fossil fuel.

The government is targeting to achieve 23% of renewable energy in the country’s energy mixed by 2025.

Jisman P Hutajulu said at Power-Gen Asia conference in ICE BSD on Sep. 18 that the Energy and Mineral Resources Ministry has called demanded the power developers to make renewable energy more affordable.

Power-Gen Asia Conference and Exhibition (Photo: RambuEnergy)

He said there are three things that power developers to make renewable energy prices are more affordable. First, improve efficiency on part of power plant operation as well as the distribution aspect. Second, the aspect of load and third competitive financing, therefore, the loan repayment is cheaper and ultimately the electricity price sold to consumers is cheaper.

“We expect more investment in the renewable sector in Indonesia as the government provide incentives to the renewable energy developers,” Hutajulu said, without elaborating.

Heru Dewanto, secretary general of the Indonesian Electricity Society (MKI), said at a media conference that he hopes there will be more collaboration between local and international power players. The collaboration is needed to create an “affordable and sustainability of power supply” in the country going forward.

Minister for Energy and MIneral Resources Ignasius Jonan visits exhibitors’ booth (3rd from right)

The Power-Gen Asia conference and exhibition, the first time held in Indonesia, is being held from Sept 18 to 20. The conference was opened by Indonesia’s Minister for Energy and Mineral Resources Ignasius Jonan.

Minister Jonan said that he expects the electricity consumption will continue to increase from 1,050 kWh per capita at present to 1,200 kWh per capita per annum in the years to come.

He added the government’s move to stimulate the development of electricity cars in the country would raise electricity consumption in the country.

The organizer said around 230 companies take part in the exhibition, including major players in the power industry such as from Japan, China, US and European Countries. A number of international companies also launched new products such as engines and others during the conference. (*)

Written by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

 

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