Supporting Energy Acceleration, PLN Signs Partnership With USAID

JAKARTA - PT PLN (Persero) and the United States Agency for International Development (USAID) have agreed to accelerate the energy transition to make it more sustainable in the long term. This is done by expanding access to renewable energy and modernizing the system

This commitment is contained in a memorandum of understanding (MoU) signed by PLN President Director Darmawan Prasodjo and USAID Indonesia Director Jeff Cohen in Jakarta, Wednesday 3 August. The partnership is part of USAID's assistance to Indonesia under the coordination of the Ministry of Energy and Mineral Resources (ESDM).

PLN President Director Darmawan Prasodjo said PLN has a goal of achieving Net Zero Emissions by 2060 to support the government's vision of reducing carbon emissions. Darmawan explained that the roadmap, goals and strategies had been developed, but he realized that there were still many challenges.

"PLN is among the 6th Asian service providers to commit to carbon neutral. We have prepared in great detail a roadmap and strategy that includes large-scale renewable energy development, discontinuation of coal-fired power plants, conversion of diesel to renewable power plants, and co-firing uses biomass," he said.

Through this MoU, USAID will further assist Indonesia in developing decarbonization scenarios in the electricity sector, such as no longer operating coal-fired power plants, and identify incentives that can increase renewable energy investment to achieve the Indonesia Just Energy Transition Partnership (IJETP) under the leadership of United States and Japan along with other international partners.

Darmawan explained that the two have collaborated on the technical development of NRE, especially feasibility studies, impact studies, technical studies, as well as calculating owner estimates for several projects. These include the Dominanga Microhydro Power Plant (PLTMH), Lau Gunung PLTMH, Toru Hilir Hydro Power Plant (PLTA), Asahan-5 Hydropower Plant, Lubu-3 PLTMH, and Sebelat PLTMH.

“We support the government's commitment to achieve net zero emissions by 2060 or earlier. Currently we have replaced 1.1 GWh of coal energy with renewable energy. Is that enough? Not. We are trying to reduce again around 2.4 GWh, which is currently in progress,” he said.

USAID Indonesia Director Jeff Cohen said, in the fight against climate change, Indonesia's clean energy transformation is critical to ensuring a livable future for everyone.

“USAID is committed to supporting PLN in Indonesia's energy transition. The MoU we are signing today will bring Indonesia closer to realizing its full energy potential while reducing dependence on coal and increasing NRE. Through this collaboration, USAID and PLN will expand access to reliable and affordable energy services for the community," he said.

Among the various activities outlined in the MoU, PLN and USAID plan to accelerate the spread of modern energy, increase knowledge exchange between Indonesian and American clean energy experts, provide technical expertise and knowledge for policy makers who seek to reduce greenhouse gas emissions from the electricity sector in Indonesia. Indonesia.

"We will accelerate the energy transition in Indonesia with various collaborative programs between the government and the international community. In the fight against climate change, Indonesia's energy transition plays a vital role in ensuring a better future for everyone on earth," concluded Cohen.