IEEFA: Funding, power purchase agreements are serious causes of not achieving the realisation of the NRE mix

Jakarta – The Institute for Energy Economics and Financial Analysis (IEEFA) has highlighted some issues that have prevented the 2025 new and renewable energy (NRE) generation mix target from being fully achieved. One of the causes is the delay in the commercial operation (COD) deadline in the electricity supply plan by PT Perusahaan Listrik Negara (PLN).

The Ministry of Energy and Mineral Resources (EMR) recently confirmed that the NRE mix target of 23% by 2025 will not be achieved. EMR Director General of New Renewable Energy and Energy Conservation Yudo Dwinanda Priaadi said that the realisation of the NRE mix until the first half of 2023 had only reached 12.5%, far below the 17.9% target set.

He also said that the projected addition to the NRE mix until the end of 2023 only reached 115 MW from the set target of 2,029 MW. Priaadi emphasised that the realisation of the NRE mix this year has considered the new capacity of the Cirata Floating Solar Power Plant (PLTS), which has a capacity of 145 MWac or the equivalent of 192 MWp.

IEEFA Energy Analyst Putra Adhiguna revealed that funding constraints, power purchase agreements (PPAs), and technical obstacles in the field are the leading causes of this lag. According to him, geothermal power plants (PLTP) and hydropower plants (PLTA) in the composition of renewable energy, as stated in the 2021-2030 Electricity Supply Business Plan (RUPTL), often face obstacles in PPA negotiations with PLN. There are also technical and non-technical complexities that include social and environmental aspects.

“In the RUPTL plan, many projects were not realised as expected, which is a serious concern. The problem involves funding constraints, PPAs, and technical and non-technical complexities such as social and environmental aspects,” Adhiguna said. (Hartatik)

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