Industry In East Java Absorbs 70,000 REC Units Owned By PLN

Illustration. (Photo: Doc. Antara)

JAKARTA - PT PLN (Persero) signed a cooperation to fulfill electricity power from new and renewable energy plants (EBT) through the purchase of around 70,000 units of Renewable Energy Certificate (REC) or equivalent to 70,000 megawatt-hours (MWh) with PT Otsuka Indonesia, PT Widatra Bhakti, and 6 factories of PT HM Sampoerna in East Java on April 13, 2022.

EVP Retail Regional Java Madura Bali PLN, Abdul Farid explained with this REC purchase contract as a form of collaboration between PLN and industry to achieve the carbon neutral target by 2060. It is also in line with supporting the energy mix target of 23 percent by 2025.

"REC is the most important instrument in reducing emissions. This collaboration is clear evidence that the industrial sector plays an extraordinary role in the transition to renewable energy," said Abdul Farid in a statement received by VOI, Monday, April 18.

General Manager of PLN UID East Java, Lasiran explained that REC products are in great demand, as of March this year 30,000 MWh of renewable energy from the Kamojang PLTP has been used by enterprise customers in East Java.

"One of the benefits that customers get with REC is that they get a procurement option to meet the target of 100 percent use of NRE that is transparent and internationally recognized and without incurring investment costs for infrastructure development," explained Lasiran.

Not only that, customers also prove their existence in contributing to reducing carbon emissions by using energy from renewable energy plants in Indonesia in running their business.

The REC purchase contract also has an impact on the government, which is pushing the energy transition towards carbon neutral 2060. It is hoped that the massive REC purchase contract in the industrial sector can encourage the growth of the national renewable energy market so as to accelerate the achievement of the energy mix target.

Deputy PT Otsuka Indonesia, Yasutaka Emoto said that his company was paying full attention to environmental issues. According to him, as a company in the pharmaceutical sector, environmental issues are a major issue for the company.

"Because environmental issues have a big impact on human health. So on this occasion, we are very happy to be able to sign a contract through REC as an effort to reduce carbon emissions," said Yasutaka.

In line with the Otsuka Group, East Engineering Manager of PT HM Sampoerna, Johanes Tanumihardja said that as a multinational company, Sampoerna prioritizes the sustainability aspect in its work operations. The purchase of REC is also in line with the company's grand strategy in realizing 100 percent carbon-neutral certified factories worldwide.

"We are always trying to increase the pace of our initiatives related to carbon neutrality. The signing of the REC for 6 factories in East Java is a very good first step in accelerating our efforts," added Johanes.

To note, REC is a certificate for the production of electrical energy produced by renewable energy generators. Through REC, PLN provides procurement options for customers to meet the target of using renewable energy that is transparent, accountable and internationally recognized in its business activities. One REC unit is equivalent to 1 Mega Watt hour (MWh).