Renewable Indonesia 2018
Renewable Indonesia 2018 is a prime expo and conference focusing on the country enormous potential to derive electricity from its natural resources. With huge and still largely untapped potential, Indonesia benefits from enormous opportunities for deployment of renewables of all sizes across hydropower, solar, wind, geothermal and biomass/waste-t0-energy sectors.
The event will take place on 4/5 April 2018 in Jakarta, Indonesia.
Renewable Indonesia 2018 is a prime expo and conference will gather movers and shakers of the fast-growing Indonesian renewable energy sector, becoming the major networking platforms for investors, OEMs, developers and consultants. Participants will be advised on the whole spectrum of Indonesian renewable energy sector, exhausting and potential opportunities, tendering process as well as pitfalls and bottlenecks be watch out for.
The Directorate General of NREEC has high commitment to increase the utilization of clean and renewable energy in Indonesia, as stated by Indonesia’s law, namely Energy Conservation (to increase energy efficiency on supply and demand side) and Energy Diversification (to increase the share of new renewable energy use in the primary energy mix).
Through energy diversification, it is projected that in 2025, Indonesian NRE share in the National Energy Mix will be 23% (based on National Energy Policy).
To achieve this target, the government has set up various programs such as:
- The construction of 35,000MW additional power capacity, and 25% of it should be based on renewable energy power generation.
- The mandatory implementation of B20 on biofuel, which started in 2016 (particularly in the transportation and power plant sectors).
- Enhancing the development of NRE-based power plants by releasing FiT. So far, the Directorate General of NREEC has released FiT regulation for (mini and micro) hydropower plants, solar photovoltaic power plants, biomass and biogas power plants, and municipal solid waste power plants. The FiT regulation for wind and rooftop solar are currently still in progress, and hopefully will be released this year.
- The Directorate General of NREEC continues to develop rural energy and rural electricity based on renewable energy, particularly through the Bright Indonesia Program (Program Indonesia Terang).
- The DGNREEC is currently drafting the energy fund that will be allocated for renewable energy development.
Indonesia’s technical hydropower potential is estimated at around 75,000 MW, with untapped resources concentrated on the islands of Sumatra, Java and Sulawesi. It is estimated that there is currently about 8 GW of economically viable undeveloped hydropower potential, which would provide almost 33 TWh of electricity per year.
The electricity sector in Indonesia is dominated by the state-owned utility, PT Perusahaan Listrik Negara (PLN), which controls 74 per cent of the country’s 46 GW of installed electricity capacity, as well as the transmission and distribution infrastructure.
The involvement of independent power producers is regulated in accordance with the 2009 Electricity Law, which maintains PLN’s exclusive rights over the transmission, distribution and selling of electricity.
Total energy demand in Indonesia is expected to increase by 8.7 per cent each year up to 2024. According to PLN’s strategic plan (RUPTL), new capacity in the country will be delivered largely through new coal-fired stations (7.23 GW), gas installations (4 GW) and combined-cycle plant (6.3 GW). The plan also includes a proposed 1 GW of new hydropower capacity.
Hydropower development will be driven in part by the government’s target to increase the share of renewables in the country’s total energy use to 23 per cent by 2025; the figure is around 5.87 per cent for 2015. Nonetheless, investment in renewable technologies has been deterred by both subsidised fuel prices and a complex, rapidly changing legal and regulatory environment.
Despite these challenges, seven hydropower stations totalling 1,559 MW are currently under construction in the country. A further ten projects totalling 1,819 MW are subject to power purchase agreement (PPA) negotiations, while 19 projects totalling 2,131 MW are in the study or design phase.
The largest project currently under construction is the 1,040 MW Upper Cisokan plant, a pumped storage project located in western Java. The project is being built by South Korea’s Daelim and Italy’s Astaldi Group, in a joint venture with an Indonesian firm, Wika. The total project cost is estimated at USD 800 million, and will be supported by a USD 640 million specific investment loan from the World Bank.
According to the World Bank, the goal of this project is to increase the peaking capacity of the Java-Bali grid in an environmentally and socially sustainable way, while strengthening PLN’s institutional capacity to oversee hydropower planning, development and operations.
Indonesia is also now importing hydropower to the West Kalimantan province in Borneo, from the neighbouring state of Sarawak in Malaysia. A 275 kV transmission connection linking the two countries’ grids in Borneo was completed in January 2016, and imports from Malaysia are expected to reach 50 MW by the end of March 2016. 2015 saw Sarawak Energy Berhad commission the final three turbines at the 944 MW Murum dam.
Indonesia profile is featured in the 2016 Hydropower Status Report. You can download the full report here. This profile was last updated in May 2016.