Jakarta—The Institute for Essential Services Reform (IESR) encourages the implementation of a “power wheeling” scheme or joint utilisation of transmission networks in the New Energy and Renewable Energy Bill (EBET Bill). This scheme is considered an important step in expanding access to clean energy, especially renewable energy, for Indonesian industries.
The Energy System Transformation Program Manager at IESR, Deon Arinaldo, explained that the industry’s need for renewable energy is increasing, along with the tightening of international policies related to carbon emissions. Therefore, the government must immediately respond to this need by providing solutions that facilitate access to renewable energy.
“The demand for renewable energy in the industrial sector continues to grow. To answer this challenge, the government must provide certainty of access, either through power wheeling or other mechanisms,” Deon said in a webinar themed *Urgency and Acceleration of Renewable Energy Development through Power Wheeling* held by IESR, Wednesday, September 25.
The proposed power wheeling scheme allows renewable energy providers to use PT Perusahaan Listrik Negara (PLN)’s electricity grid to distribute electricity to end consumers, such as multinational companies that are members of RE100, a group committed to using 100 per cent renewable energy. According to Deon, this mechanism will help companies achieve their decarbonisation targets and encourage sustainable investment in Indonesia.
“Ensuring access to renewable energy is crucial for companies committed to green energy. With power wheeling, industries will be more interested in investing in Indonesia, as they can meet international market demands for green-labelled products,” Deon added.
Network infrastructure optimisation
The coordinator of the Energy and Electricity Resources Research Group at IESR, His Muhammad Bintang, emphasised that the power wheeling scheme can also accelerate renewable energy development through private sector participation. This scheme opens up opportunities for the private sector to access the existing power grid, so renewable energy projects can be realised faster than the current centralised system.
“With market and private participation, the cost of electricity from renewable energy can be more competitive. In addition, the development of renewable energy technology in the country will accelerate,” said Bintang.
“The government must ensure that this scheme is following the needs of the industry, including considering wheeling charges and strengthening the electricity network. Thus, power wheeling can help the industry improve the competitiveness of its export products,” he added.
IESR also emphasizes the importance of more detailed regulations on the power wheeling scheme, and limiting the scheme to renewable energy only. Bintang suggested that the scheme be implemented in stages to test its effectiveness before it is widely implemented. (Hartatik)
