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Indonesia’s state-owned power utility Perusahaan Listrik Negara (PLN) plans to continue to increase its installed renewable energy capacity by 32 gigawatts (GW), while investing in upgrading grid infrastructure to support more renewable energy connections. The plan is aimed at accelerating the construction of renewable energy projects and their connection to the grid, as well as reducing the country’s reliance on coal, which currently accounts for about half of the total installed capacity in Indonesia.
PLN is in the process of revising its power master development plan to meet the future demand for a large number of renewable energy installations to be connected to the grid, PLN managing director Darmawan Prasodjo said. Under the existing power development plan for 2021-2030, the company plans to increase its installed renewable energy capacity by 20.9GW, accounting for 51% of the new power generation capacity to be installed during the period.
With the accelerated development of renewable energy, 75% of the PLN’s additional installed power generation will come from renewable energy sources, with the remaining 25% coming from natural gas power. Currently, about 14% of Indonesia’s installed power comes from renewable energy sources.
PLN also plans to upgrade its grid infrastructure to facilitate the integration of more renewable energy sources into its power network. This will give PLN the ability to increase its installed renewable power capacity from the current 5GW to 28GW.
As publicly stated by the Indonesian government’s senior cabinet minister (Luhut Pandjaitan), the Indonesian government hopes that the funds committed under the Fair Energy Transition (JETP) program will help finance PLN’s grid construction efforts.