JAKARTA (TheInsiderStories) - The energy and mineral resources (EMR) ministry confirmed that the presidential decree on the purchase of renewable energy by state-owned power producer, PT Perusahaan Listrik Negara (PLN) soon to be issued, said the government official in this week.
Director general at the ministry, Dadan Kusdiana, said in a virtual hearing with the parliament on Tuesday, the draft had been submitted to President Joko Widodo. He explained, there are three formulations of new and renewable energy electricity prices which are planned to be regulated in the decree.
First, feed in tariff will be implementation in stages. Second, the highest benchmark price for the electricity capacities above 5 megawatt (MW) and third the pricing scheme is in accordance with the mutual agreement between the developer and PLN.
The design of the renewable energy price will apply to various types of power plants, including hydroelectric power plants and micro-hydro or mini-hydro power plants. The price scheme also applies to small-scale power plants that utilize the potential of biomass or biogas energy, photovoltaic solar power plants, and wind power plants.
Realization of New and Renewable Investment
The ministry also reported that the realization of renewable energy investment by the end of September 2020 had reached US$965 million, near to this year’ target of around $1 billion. The investment realization included energy conservation of $8 million, bio energy amounting to $7 million, various renewable energy worth of $450 million, and geothermal of $505 million.
According to Kusdiana, the geothermal investment consists of drilling exploration wells, drilling exploitation, and reworking wells in several production wells. Then, one of the bio energy investments is the construction of a biofuel factory.
The Indonesian government is also trying to encourage the use of renewable energy in order to pursue the 2025′ targets of 23 percent of total energy needs. He adds, the potential for renewable energy in Indonesia reaches 442 gigawatt (GW). Currently Indonesia only utilize 10.4 GW or only 2.4 percent of the total potential.
For background, in the Paris Agreement, the government has committed to reduce carbon dioxide emissions or greenhouse gas emissions by 26 percent with their own resources and up to 42 percent reduction with international support.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
