The energy and mineral resources (EMR) ministry has set the investment target for the renewable energy and conservation sector to reach US$20 billion form 2020 to 2024 - Photo by ICED

JAKARTA (TheInsiderStories) – The energy and mineral resources (EMR) ministry has set the investment target for the renewable energy and conservation sector to reach US$20 billion form 2020 to 2024. The investment is needed to help the government’ energy mix target by 23 percent in 2025.

In this year, the department targeting raises $2 billion of investment and in 2021 worth of $4 billion. Then in 2022 of $5 billion, 2023 of $4 billion, and $5 billion in 2024. The government is committed to increasing the addition of renewable energy capacity to 9,051 megawatts (MW) in five years.

For the first phase, the ministry targeting to realizes 687 MW in this year. It will be increased to 1,001 MW in 2021, 1,922 MW in 2022, 1,778 MW in 2023, and in 2024 the capacity reaches 3,664 MW.

In 2019, Indonesia government targets to raised an investment in renewable energy sectors US$1.79 billion. The amount smaller than previous year’ target worth of $2.01 billion.

The director general at EMR ministry, Rida Mulyana reported, in the third quarter (3Q) of 2018, the investment realization was only 40 percent of the target, or valued $804 million. The projects is still dominated by diesel, solar and air power plant. He said, there were around 60 megawatt of diesel power plant, which signed a purchase agreement in this year.

“For the definite project value this year, the power purchase agreement of $510 million will be in solar, water and others,” said the government official.

While, in the geothermal sector, the director Ida Nuryatin Finahari explained that in 2019 there are two geothermal power plant projects that will be operational, precisely in March.

“Hopefully the on time Lumut (South Sumatera) and Muara Laboh power plant (West Sumatera) will be operates. While the Sokoria power plant (Flores Island) is planned to be operational in the second semester of 2019,” said Mulyana.

In addition, the government also targets the installation of 1 million solar panels with total capacity 1 gigawatt over the next four years until 2023. This target is in line with the regulations related to Roof Solar issued by the government on Jan. 1, 2019 ago.

He explained that with these rules, the community and also government could start installing solar panels on the building. The hope, with the existence of these solar panels, the residents are no longer dependent on fossil energy sources alone.

The director is optimistic that this project can be easily realized considering that there are more than 40 million electricity customers. To reduce fossil energy use, the government also plans to implement green fuel and also B30, which will be discussed by the government in 2020.

Furthermore, said Muljana, the first refinery for green fuel was prepared at the Plaju Refinery in South Sumatra. Since the beginning of December 2018, the Plaju Refinery Unit III has been able to process crude palm oil into green fuel and green LPG.

After the Plaju Refinery, a commercial trial of the production of environmentally friendly fuels will also be conducted at the Cilacap Refinery Unit (Central Java), Balongan Refinery (West Java) and Dumai Refinery (Riau).

The products produced are not only environmentally friendly gasoline but also environmentally friendly diesel (green diesel) and environmentally friendly Avtur (green avtur). Trial is conducted until 2020 and is targeted to be able to produce sustainably in 2023.

Written by Staff Editor, Email: theinsiderstories@gmail.com