PLN receives Rp 15 billion grant to support NRE in Eastern Indonesia

Jakarta – PT PLN (Persero) has received a grant agreement worth USD 1 million from the United States Trade and Development Agency (USTDA) to support the development of new and renewable energy (NRE) infrastructure in five outermost, frontier and disadvantaged (3T) areas in eastern Indonesia.

The grant will provide the impetus for the technical and economic feasibility study of the NRE mini-grid project, which details the technical design, economic impact evaluation, and environmental and social impacts of the planned NRE power plant.

PLN Finance Director Sinthya Roesly said that the grant will be used to finance services related to the preparation of the technical and economic feasibility study of the NRE mini-grid project, which includes the design of detailed engineering solutions, evaluation of the economic, environmental, and other impacts of the NRE power plant when it is commissioned.

“This activity is important to analyse and support PLN’s implementation in preparing NRE projects in the 3T region in the future,” she said in an official statement.

The collaboration between PLN and USTDA was marked by the exchange of Grant Agreement documents signed by both parties as a symbol of mutual commitment at PLN Headquarters on Monday, February 12, 2024. USTDA Director Enoh Titilayo Ebong stated that this collaboration aligns with USTDA’s global vision of promoting sustainable growth in developing countries.

“The transformation in the use of renewable energy will have implications for climate crisis mitigation, especially through the provision of reliable access to electricity,” she said.

PLN has emphasised its commitment to implementing an energy transition roadmap based on the energy trilemma: energy security, energy equity, and environmental sustainability. Through quality studies and development, PLN is optimistic that the distribution of NRE can be carried out fairly, affordably, reliably and with quality.

This step also aligns with the global vision to support the Enhanced-Nationally Determined Contribution (E-NDC) target in 2030 and Net Zero Emissions (NZE) in 2060, announced by the Government of Indonesia. PLN also said they plan to develop hybrid power plants by collaborating with diesel power plants (PLTD), solar PV, and battery storage in five potential 3T locations in Eastern Indonesia.

“Through this collaboration, we want to increase electricity access in five 3T areas to 24 hours through green energy support. I hope this collaboration is the first step that can have a big impact on the people of Indonesia,” added Roesly. (Hartatik)

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