PLN Collaborates With Norwegian And Japanese Partners To Encourage Cross-State Carbon Markets

Director of Technology, Engineering and Sustainability of PLN Evy Haryadi. (Photo: Doc. PLN)

JAKARTA - The Indonesian government through PT PLN (Persero) established two strategic partnerships at the Seller Meets Buyer forum at the Indonesian Pavilion at Conference of the Parties 30 (COP30) in Belem, Brazil.

PLN signed the Mutual Expression of Intent with the Government of Norway through the Global Green Growth Institute (GGGI), as well as the Memorandum of Understanding (MoU) with Carbon Ex Inc, a Japanese company.

This initiative is an important step for Indonesia in accelerating the development of low-carbon projects and strengthening the carbon market at the global level.

PLN's Director of Technology, Engineering and Sustainability, Evy Haryadi explained that PLN together with the Government are now taking on a new role as a catalyst and carbon market accelerator to accelerate energy transition and encourage cross-border collaboration in climate change mitigation.

The world is moving with firm steps towards the Net Zero Emissions target, and Indonesia is no exception. PLN has committed to achieving Net Zero Emissions by 2060, in line with national targets and the Paris Agreement. To achieve this ambition, collaboration is not an option but a must," said Evy, Friday, November 21.

Evy further said that the Government has launched the 2025-2034 Electric Power Supply Business Plan (RUPTL) which targets the addition of a power plant capacity of 69.5 gigawatts (GW), with 76 percent or 52.9 GW coming from EBT and storage.

These new assets are expected to generate more than 1,000 terawatt-hours of green electricity over the next ten years, opening up great opportunities for the development of clean energy.

Indonesia has a great opportunity to lead the clean energy transition that drives the transformation of the green economy through energy utilization in Indonesia. And we want to be a leader not only at the regional level, but also a global leader by providing an abundant supply of green energy and various supporting facilities for the sustainability targets that customers need in the future," Evy continued.

PLN offers two main products based on green attributes to support the company's decarbonization.

First, the Carbon Unit, which allows companies to offset their greenhouse gas emissions through an emission-reduction or absorption project through a credible domestic and international certification scheme.

Second, green energy as a service, including Renewable Energy Certificate (REC) and Dedicated Green Energy Sources, which provide direct access to clean and stable electricity from PLN infrastructure assets.

With these two products, the company can plan short-term and long-term strategies to achieve the NZE target effectively.

Our main products in the management of green attributes are the Carbon Unit and Renewable Energy Certificate. REC helps business actors have official and transparent recognition that the electricity used comes from new and renewable energy. This instrument not only functions as a compliance facility, but also opens up opportunities for accelerating decarbonization in various industrial sectors," Evy explained.

Selain itu, PLN juga menawarkan peluang forward offtake untuk tiga proyek bersertifikasi Gold Standard dengan penurunan emisi sekitar 1,5 juta ton karbon dioksida ekuivalen (CO2e), di antaranya dari Pembangkit Listrik Tenaga Surya (PLTS) ground-mounted berkapasitas 50 megawatt (MW) dengan baterai di Ibu Kota Nusantara.

“Peluang ini kami hadirkan sebagai bagian dari transformasi sektor ketenagalistrikan Indonesia menuju ekosistem energi yang lebih berkelanjutan, kompetitif, dan berdaya saing internasional. Dengan dukungan investor dan mitra teknologi, kita dapat mempercepat realisasi proyek-proyek strategis yang memberikan dampak nyata bagi pengurangan emisi,” pungkas Evy.

In addition, PLN also offers forward take opportunities for three Gold Standard-certified projects with an emission reduction of around 1.5 million tons of equivalent carbon dioxide (CO2e), including from ground-mounted Solar Power Plants (PLTS) with a capacity of 50 megawatts (MW) with batteries in the capital city of the archipelago.

"We present this opportunity as part of the transformation of Indonesia's electricity sector towards a more sustainable, competitive, and international competitive energy ecosystem. With the support of investors and technology partners, we can accelerate the realization of strategic projects that have a real impact on emission reduction," concluded Evy.