Jakarta – Nusa Penida Island, Bali, requires an investment of approximately USD 100 million to transition to renewable energy by 2030. This commitment is part of a joint initiative between the Institute for Essential Services Reform (IESR) and the Bali Provincial Government supporting the Bali Net-Zero Emission 2045 target. IESR and strategic partners have developed an integrated roadmap to achieve this target, emphasising the importance of synergy between the government, private sector, and PLN.
IESR Executive Director Fabby Tumiwa said that the Nusa Penida 100 per cent renewable energy project requires concrete steps and collaboration of various parties.
“This project helps the national energy transition and makes Nusa Penida an iconic island that fully uses renewable energy. Utilising the island’s abundant renewable energy sources will increase the attractiveness of tourism, preserve Bali’s environment, and improve the welfare of the local community,” Fabby said during the signing of the MoU at the Indonesia International Sustainability Forum (ISF) 2024, Thursday, September 5.
The construction of solar power plants (PLTS), biomass, wind, and energy storage systems is an important part of the infrastructure that will replace the Diesel Power Plant (PLTD) in Nusa Penida. According to Fabby, this large investment is needed so that the development of renewable energy can meet the increasing electricity demand on the island before 2030.
“We are targeting to replace PLTD completely with renewable energy. This is only possible if there is a strong partnership between PLN, Indonesia Power, and renewable energy sector investors,” he added.
Based on analysis by IESR and Udayana University’s Center of Excellence Community-Based Renewable Energy (CORE), Nusa Penida has enormous renewable energy potential, with a more than 3,219 MW capacity. This potential includes 3,200 MW of ground-mounted solar PV, 11 MW of rooftop solar PV, and 8 MW from biomass, not including the potential for wind, ocean currents, and biodiesel. Fabby added that the project will be implemented in three phases, starting from the construction of solar power plants to network strengthening and system management.
Support from PLN is also key in this project. Dewanto, Vice President of Various Renewable Energy at PLN, stated that PLN continues to support the energy transition by reducing dependence on fossil energy, especially in areas that still rely on PLTD.
“We are committed to reducing the use of fossil energy and supporting steps towards Net Zero Emission (NZE),” Dewanto said.
On the business side, KADIN Indonesia’s Deputy Chairman for Energy and Mineral Resources, Solihin J. Kalla, highlighted that the renewable energy sector could attract investment in Indonesia.
“Implementing this roadmap is a great model for a collaborative energy transition. We hope that cooperation with PLN and renewable energy associations can attract investors to invest in the renewable energy sector,” Solihin said.
In addition to PLTS, Andhika Prastawa, Chairman II of the Indonesian Renewable Energy Society (METI), emphasised that hybrid PLTS in Nusa Penida is important in achieving Bali NZE 2045.
“We will continue to support the stability of hybrid PLTS as the backbone of renewable energy in Bali,” he said.
The Indonesian Wind Energy Association (AEAI) is also examining the potential of wind energy in Nusa Penida. Agung Hernawan, Chairman of AEAI, says that wind energy development on the island is promising.
“We are ready to support wind energy development and act as a bridge between the government and energy developers,” Agung said.
PT Bali Kerthi Development Fund Ventura (BDF), established to support Bali’s economic transformation, will also fund the project. BDF President Director I Made Gunawirawan stated that the fund will act as a financial intermediary. “We play a role in providing financing for the procurement of solar power plants for the Nusa Penida community as part of implementing the renewable energy roadmap,” he said.
The initiative also received support from several philanthropic organizations and coalitions focusing on clean energy, including ViriyaENB and the Bali Coalition of Net Zero Emissions, consisting of WRI Indonesia, Nexus Indonesia, CAST Foundation, and IESR. With this collaboration, it is hoped that Nusa Penida can become a successful example of energy transition that can be applied in other parts of Indonesia. (Hartatik)
Banner photo: Top down view of solar power station in the field for renewable energy resources in Bali, Indonesia. Creativa Images/shutterstock.com
