Indonesia’s state utility company, Perusahaan Listrik Negara (PLN) [PLN:IJ], has announced its intention to secure a USD700m investment for the installation of a 200 mega-watts (MW) solar panel system, with the goal of replacing diesel generators and reducing carbon emissions, as reported by Reuters on May 28. This initiative aligns with PLN’s overall objective of achieving net zero carbon emissions by 2060, and the company plans to install a total of 4.68 GW of solar panels between 2021 and 2030. According to PLN’s director, Evy Haryadi, the 200 MW solar panel project represents the initial phase of a larger plan to replace 1 GW of diesel power plants with solar energy, although no specific timeline has been provided for this initial phase. Indonesia has received commitments of USD20bn in financing from a coalition of countries through the Just Energy Transition Partnership (JETP), which aims to support Indonesia’s transition to cleaner energy. The head of Indonesia’s JETP Secretariat, Edo Mahendra, has stated that a detailed plan for the allocation of JETP funds is expected to be finalized by August, and PLN’s shift from diesel power to renewables will serve as a pilot program within the JETP framework.

The solar panel project undertaken by PLN not only contributes to reducing carbon emissions and improving air quality but also aligns with Indonesia’s renewable energy targets and government support. With a growing demand for electricity and an emphasis on sustainability, the installation of solar panels addresses the country’s energy needs while promoting job creation and economic growth. This ambitious initiative, supported JETP and its USD20bn commitment, highlights the collaborative efforts between Indonesia and its international partners.

Sources:

https://www.reuters.com/business/energy/indonesia-seeks-700-million-install-200-mw-solar-power-2023-05-28/

https://www.iisd.org/publications/report/getting-23-cent-strategies-scale-renewables-indonesia