Towards NZE 2060, PLN Has Finalized A Series Of Energy Transition Projects

PT PLN (Persero) has finalized a series of energy transition projects, such as the construction of various New Renewable Energy-based power plants (EBT) and fossil power generation dedieselization programs to realize the support of Just Energy Transition Partnership (JETP).

PLN President Director, Darmawan Prasodjo represented by PLN's Director of Transmission and System Planning Evy Haryadi said this was a follow-up to the agreement between state leaders at the G20 Summit in Bali in 2022 and the commitment to energy transition funding.

"In last year's G20, the Indonesian government signed an agreement with JETP for the energy transition in Indonesia. As mentioned, JETP is committed to providing funds for various green programs of its member countries," he said in an official statement, Sunday, May 28.

Evy said PLN had designed a short-term and long-term program to achieve targets (Net Zero Emission (NZE) by 2060. One of the short-term programs currently being carried out is the fossil fuel power plant dedieselation project of 1 gigawatt (GW) and replacing it with a solar-powered power plant (PLTS).

PLN plays an important role in Indonesia's energy transition to clean energy. One of the strategic initiatives carried out by PLN as a concrete step towards net zero emissions is the implementation of the dedieselization program," he said.

Evy explained that the main challenge of the dedieselization program is the large number of power plants spread across remote areas. Therefore, PLN needs the right strategy to make the transfer of these plants, both from an economic and technological perspective.

"For the first phase, PLN plans to build 0.2 GW PLTS in 94 different locations. The project is estimated to require an investment of US$0.7 billion," he said.

Furthermore, Evy added, PLN through its subholding, namely PLN Nusantara Power and PLN Indonesia Power, actively continues to seek strategic partners in collaborating to make the dedieselization program a success.

PLN realizes that the implementation of the dedieselization program requires large investment both in terms of finance and technological resources. Thus, strong collaboration between PLN, developers, financial institutions, and other strategic partners is very important for the success of the dedieselization program," he said.

Head of JETP Secretary, Edo Mahendra, revealed that during these 6 months from February to August 2023, JETP was working on a detailed plan for the allocation of USD 20 billion in fund commitments. The hope is that various energy transition programs that have been designed by countries that are members of JETP can be implemented immediately.

"We have built the foundation. We are very grateful for the support and commitment given by the international community in the energy transition," explained Edo.

Edo said the dedieselization and construction program of his replacement EBT generator as carried out by PLN was a program pilot in JETP. For this reason, his party will provide full support so that this dedieselization program can be successful.

"Let's make this program a success. Because only with the joint work of this project can be realized. The success of this project will be a showcase and reference for more energy transition programs," concluded Edo.