Pertamina NRE Targets Clean Energy Power Plant Capacity To Reach 6 Gigawatts In 2029

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Pertamina New & Renewable Energy (Pertamina NRE) targets the installed capacity of clean energy-based power plants to reach 6 gigawatts (GW) by 2029, double the current capacity.

Director of Risk Management of Pertamina NRE Iin Febrian, in a discussion in Jakarta, Tuesday, August 20, said that Pertamina NRE is also targeting operating revenues of US$2.1 billion, a five-fold increase compared to current revenues.

The 6 GW targets will be contributed to the development of production of various clean energy sources, such as hydrogen, geothermal, gas, diesel, wind, and biomass.

Until 2029, Pertamina NRE plans to increase its hydrogen production capacity to 77.1 kilotons per year, 51.5 GWh of battery production capacity, and geothermal-based power generation capacity to 1.4 GW.

In addition, the company is also targeting an increase in electricity production from gas energy sources to 3.8 GW, solar 1.3 GW, wind 58 megawatts (MW), biomass 33 MW, and bioethanol production 840,000 kiloliters, as well as an increase in carbon credit sales of 19.2 million tons. CO2 equivalent in 2029.

Iin admits that there are still several challenges that must be overcome in developing renewable clean energy (EBT) in Indonesia, including access to funding, technology development, initial funding, the company's capacity development and capability in managing the EBT business, and supportive regulations.

"This initiation requires great resources. In addition, several existing EBT businesses are still in the early stages of developing and facing challenges in creating demand," he said, as reported by Antara.

Efforts to develop EBT in Indonesia face challenges because until now there is no specific law that regulates the development of renewable energy. In fact, the government has a 23 percent EBT mix target by 2025. The EBT achievement in 2023 will only reach 13.09 percent.

Even so, the government is currently intensively discussing and drafting the Draft Law on New Energy and Renewable Energy with the DPR, which is expected to be a comprehensive regulation to create a climate for sustainable and fair energy development of EBT.

Previously, the government had launched Presidential Regulation Number 112 of 2022 concerning the Acceleration of EBT Development for Electricity Supply as an effort to attract more investment in renewable energy development.

Not only regulating the use of renewable energy in terms of prices and procurement mechanisms, but also the energy transition in the electricity sector which includes roadmaps to accelerate the termination of PLTU and restrictions on the construction of new plants.