BPK criticises energy transition scenario: Potential power shortage, high cost

Jakarta – The Supreme Audit Agency (BPK) revealed serious problems related to risk mitigation in the energy transition scenario towards net zero emission (NZE) by 2060, including the immediate cessation of coal-fired power plants. These findings could impact Indonesia’s electricity supply, resulting in potential energy shortages.

The head of BPK, Isma Yatun, presented these findings in the Overview of Audit Results for Semester I-2023 (IHPS). The examination covers the performance of coal, natural gas and renewable energy management in the development of the electricity sector, focusing on energy availability, affordability and sustainability from the 2020 fiscal year to the first semester of 2022.

She said the Government had developed a roadmap towards NZE 2060 and secured coal and natural gas supplies for domestic interests. However, she highlighted that risk mitigation against energy transition scenarios has not been fully implemented.

In addition, the progress of the Electricity Supply Business Plan (RUPTL) project is considered low. Thus, it can cause supply shortages in most national electricity systems.

“In the IHPS, it is stated that the government’s policy to achieve a 23% new and renewable energy mix will increase the generation Cost of Supply (BPP) by 118.15%, which greatly affects the amount of subsidies and compensation that the government must bear,” said Isma Yatun in an official statement.

BPK’s criticism of the cessation of coal-fired power plant policy highlights the serious challenges in achieving clean energy targets, with potential impacts on the sustainability of electricity supply and a higher financial burden for the government. (Hartatik)

Banner photo: Chairman of BPK RI Isma Yatun presents IHPS I Year 2023 to the leadership of the House of Representatives in Jakarta. (Source: BPK RI)

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