Freeport Gresik Smelters Use PLN Green Electricity Until 2025

PT PLN (Persero) supplies the green energy needs of the PT Freeport Indonesia (PTFI) smelter through the Renewable Energy Certificate (REC) of 1,009,000 units or the equivalent of 1,009 GWh until 2025.

The cooperation between the two parties was marked by the signing of the Green Energy As Services REC Cooperation Agreement (PKS) in Surabaya, Friday, March 8. This is a follow-up collaboration between the two parties where since September 2023 PLN has started supplying electric power for PTFI smelters in the Special Economic Zone (KEK) Gresik, East Java.

General Manager of PLN East Java Distribution Main Unit, Agus Kuswardoyo explained that REC is a form of PLN's service to make it easier for customers to get international recognition for the use of New and Renewable Energy (EBT) which is transparent, accountable, and recognized globally.

Each REC certificate proves that electricity per megawatt hour (MWh) used by customers comes from EBT or non-fosil generators.

"We positively welcome this collaboration with PT Freeport Indonesia. Furthermore, we are ready to supply REC of 1,009 GWh to PT Freeport Indonesia until 2025," Agus said in a statement to Medi, Wednesday, March 13.

Agus said the REC PLN is a collaboration product with the Clean Energy Investment Accelerator (CEIA). This REC is equipped with an electronic tracking system from APX TIGRs located in California, United States. Therefore, every certificate issued cannot be purchased or sold by other people.

"PLN is ready to fully support stakeholders in the industrial and business sector who want to participate in supporting decarbonization using the PLN REC," said Agus.

Meanwhile, Horst-Dieter Garz as Executive Vice President of Corporate Strategy PT Freeport Indonesia appreciated the cooperation that was established. He also hopes that this collaboration can be continued in the future.

"We are very honored to be here and we are very happy to be a long-term customer of PLN," said Horst-Dieter.

In East Java itself, throughout 2023 PLN has sold REC to 28 customers, namely 863,724 REC units which are equivalent to Rp30.3 billion. Customers can purchase REC, both for individuals and corporations, through the PLN website.