Jakarta – The Ministry of Energy and Mineral Resources (MEMR) reports that until June 2024, the installed capacity of new and renewable energy (NRE)-based power plants has increased by 217.73 megawatts (MW), which is dominated by hydropower plants (PLT Hidro) and solar power plants (PLTS).
This achievement is only about 66.6 per cent of this year’s target set at 326.91 MW.
Additional capacity from hydropower plants reached 127.56 MW or about 66.4 per cent of the target. While, PLTS added 75.17 MW, exceeding the target with an achievement of 147.02 per cent. On the other hand, capacity addition from bioenergy has only reached 15 MW or 43.2 per cent of the target.
Minister of Energy and Mineral Resources Arifin Tasrif revealed that green energy development in Indonesia still faces several major challenges, including limited infrastructure and regulations that are not fully supportive.
“That’s why we must carry out programs to encourage demand. For example, electric vehicles (EVs) continue to be accelerated and then solar power plants for industry and housing must be encouraged,” Arifin said, on Tuesday, August 6.
Until June 2024, there has been no additional capacity from geothermal power plants (PLTP), which is targeted at 49 MW for this year. The installed capacity increase of power plants is also accompanied by an increase in investment in the NRE sector.
As of June 2024, investment realization reached USD 0.565 billion or around 45.9 per cent of the annual target of USD 1.232 billion. Investment targets in the geothermal sector and various other types of EBT accounted for the largest share, with geothermal at USD 0.64 billion and various EBT at USD 0.512 billion. Investment in bioenergy was recorded at USD 0.064 billion, and energy conservation at USD 0.016 billion.
Arifin added that the increase in investment was driven by government policies that support the development of EBT, large market potential, and increasing public awareness of the importance of clean energy.
Despite the positive achievements, the contribution of EBT in the national energy mix is still relatively slow, estimated to be only around 13-14 per cent by 2025. Arifin estimates that the cause of the slow achievement is the existence of bottlenecks.
With ongoing efforts to overcome these bottlenecks, the government hopes to encourage more significant renewable energy growth in the future, to achieve the clean and sustainable energy targets that have been set. (Hartatik)
