ReforMiner: Export Of EBT Electricity Solutions During Power Wheelin Polemic

JAKARTA - Executive Director of the ReferMiner Institute, Komaidi Notonegoro, assessed that the agreement regarding the export of clean electricity from Indonesia to Singapore with a capacity of 3.4 gigawatts (GW) until 2035 is a solution in the midst of power steering polemics in the country.

Power steering is a mechanism that allows private parties or Independent Power Producers (IPP) to build power plants and sell directly to the public through the PLN transmission network.

"In the midst of these problems (power steering), if there is an agreement with Singapore, this will automatically be an indirect solution for us. On the other hand, we have problems, on the other hand, we have the opportunity to become a market," said Komaidi when contacted in Jakarta, Saturday.

From within the country, he explained that PLN is still not willing to absorb electricity based on renewable new energy (EBT) as the price is relatively expensive.

Along with that, the basic electricity tariff (TDL) has been determined by the government which makes PLN not have the flexibility to determine the selling price of electricity.

Thus, PLN still tends to choose electricity from fossil energy (coal) which is much cheaper than EBT-based electricity, which will provide a large profit margin for PLN,

"In the midst of a power steering polemic where there is still no final agreement, because PLN is still not willing. Then this becomes an obstacle for EBT developers, because as business as friends at PLN must consider margins as the main thing, while if you buy expensive EBT ones," said Komaidi.

Furthermore, he does not deny that EBT-based electrical energy should be used domestically when referring to environmental aspects, technical aspects, and others.

However, according to him, there are problems related to the purchasing power aspect of people who have not been able to reach electricity at an expensive price, because they are used to subsidized electricity.

"If the EBT wants to be added, the price is expensive, if the price is expensive, it is constrained in our purchasing power which has not reached there. We are used to subsidized prices. If the subsidy is added, our fiscal capacity is limited," said Komaidi.

On Friday (13/6), Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia together with Minister of Manpower and Second Minister for Trade and Industry Singapore Tan See Leng signed a memorandum of understanding (MoU) related to net electricity exports to Singapore with a capacity of 3.4 gigawatts (GW) until 2035.

In addition, it was also agreed that the development of a sustainable industrial zone planned to be located in the Riau Islands, precisely in Bintan, Batam, and Karimun, by Singapore, and it was also agreed to cooperate in the capture and storage of carbon Capture and Storage (CCS) in Indonesia.

The potential investment absorbed from the deal amounted to USD 30-50 billion in solar panel plant investments, as well as USD 2.7 billion in solar and battery panel manufacturing, and also has the potential to open 418 thousand new jobs from manufacturing, construction, operation, and maintenance of solar panels and batteries.

On the other hand, previously, the Ministry of Energy and Mineral Resources emphasized that the Draft Law on New Energy and Renewable Energy (RUU EBET) remains a priority discussion between the government and the House of Representatives (DPR).

Although almost all articles of the bill have been agreed with the DPR, the Secretary of the Directorate General of New Energy, Renewable and Energy Conservation of the Ministry of Energy and Mineral Resources, Sahid Junaidi, said that discussions on the joint use of the transmission network (PBJT) or power steering are still being debated and require resolution.

"Formally, the government has submitted its response, then in the dynamics the need for PBJT is increasing. And internally the government agrees that this issue needs to be raised," said Sahid.