Jakarta – Senior Advisor Programme Manager of the International Energy Agency (IEA), Michael Waldron, revealed that electricity system prices and investment costs for developing new renewable energy (NRE) are still above the prices set by the international market, making it less attractive for investors.
“I hope the Indonesian government lowers the price of (renewable) energy through contractual and operational reforms in the power system to attract more investment. In addition, building inter-island grid integration is also important for Indonesia so that renewable energy sources are connected to load centres or energy demand,” Waldron said at the Indonesia Energy Transition Dialogue 2023.
He added that contract and operational reforms must target conventional power plants, such as coal-fired, which can play a role in flexible electricity system operations.
Waldron said the advancement of interconnection in ASEAN and the operation of flexible energy systems in Indonesia will accelerate emission reduction and increase cost savings.
“Indonesia’s energy system can prepare for a greater share of renewable energy through implementing new contracts, providing incentives for investment in the grid, developing system flexibility strategies, as well as adapting grid planning and operations to maximise the share of renewable energy variations and setting a vision for a smart grid,” he said.
On that occasion, General Manager of PLN Unit Induk Pusat Pengatur Beban Java, Madura and Bali (PLN UIP2B Jamali), Munawwar Furqan, mentioned several challenges of operating an energy system that accommodates renewable energy variations, including the intermittency of renewable energy that affects the system, reliability and frequency changes.
“Some of the strategies to control the intermittency of renewable energy variations include revising the grid code to be applicable to grid users, forecasting and load reduction for system stability, and installing battery energy storage systems,” explained Furqan. (Hartatik)
Banner photo: Senior Advisor Programme Manager of the International Energy Agency (IEA), Michael Waldron, as a speaker at the Indonesia Energy Transition Dialogue 2023 held offline on Tuesday (19/9). (Hartatik)