Multymeter.com – The Indonesian State Electricity Company (PLN) is committed to developing sources of electricity from New and Renewable Energy (EBT), although there are several challenges that power companies must face to implement them.
According to PT PLN’s Director of Project Management and EBT, Wiluyo Kusdwiharto, the first challenge faced by companies in developing EBT in Indonesia, as quoted from CNBC Indonesia, is related to the program to increase the implementation of the Domestic Component ( TKDN) level.
To boost the share of EBT generators, using TKDN with mastery of technology, according to him, support for strengthening Human Resources (HR) and technology is needed. Because the funds needed reach US$ 700 billion to achieve carbon neutrality from the power sector until 2060.
Wiluyo said in Webinar: Sustainable Investment (Renewable Energy), Wednesday (2/11/2022) : “We encourage its development so that the celebration of EBT in Indonesia, which has a value of US$ 700 billion, will not be enjoyed by outsiders but by the Indonesian people. For this reason, we need the support of the domestic industry for regulatory support so that local content will increase more and more.”
Regarding supply & demand, this is the second challenge. According to Wiluyo, power plant development also needs to consider the harmonization of supply and demand, economy, and reliability. Readiness is not only on the supply side of generators but also on the demand growth side.
And the third challenge is related to technology, tariffs and funding. Wiluyo assesses that the rapid pace of technological development has an impact on the economics of the project. In addition, there are several EBT generator rates that are still above fossil generators.
“To accelerate it, there needs to be some kind of concept of how to compensate for the difference in tariffs for EBT generators and fossil generators. For that, there needs to be government support, does it need its own agency to cover this difference, for example through carbon tax. So carbon tax, we collect the money to fund the difference in rates,” he said.
Then there is the issue of funding, with the need for funds reaching US$ 700 billion, support from various parties is needed. The reason is, it is not possible if the funding only relies on the state treasury or companies.
And the fourth challenge is project execution. Wiluyo views ease of licensing and land preparation as the main issues in project execution. Next, namely the matter of ease of access and project location. He also hopes that this issue can be resolved. “So that EBT development can be even better,” he concluded.***