Use JETP Funds, PLN Acceleration 522 Green Projects Until 2030

PT PLN (Persero) has prepared 522 green projects to be collaborated on through the Just Energy Transition Partnership (JETP) scheme.

This number has increased sharply from 163 green projects currently run independently by PLN for the energy transition to reach the NZE target in 2060.

Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM), Dadan Kusdiana said, the Government has agreed with G20 member countries at the G20 Summit meeting in Bali, to encourage energy transition in Indonesia through mapping clean energy projects that will be financed through the JETP scheme.

For this reason, the Government together with PLN and the JETP Secretariat are working on the most appropriate technical and financial schemes to support national energy security.

"We have dealt, we have agreed, the joint statement has also been approved. I hope that the delivery will be a megawatt hour and a ton of CO2 reduction. So this output is what we are pursuing at the Ministry of Energy and Mineral Resources as a result of the G20 state agreement through joint statement for the implementation of JETP. That's what I want to invite to focus on today's discussion," said Dadan, quoted on Monday, June 26.

Dadan said the designed technical and financial design would lead directly to the construction of a domestic green energy supply chain. So that the financial assistance provided by JETP will be maximized to strengthen the green industry and local human resources.

"Later on, the CIPP that will be produced must be tactical and workable, must be executed both in terms of projects and policies. We encourage the supply chain of domestic green energy, the industry is in us, human resources are also absorbed," he concluded.

PLN President Director Darmawan Prasodjo responded that PLN had identified 4 scenarios of energy transition in the country within the framework of JETP and conducted technical analysis with the International Energy Agency and a joint financial analysis of the Asian Development Bank.

"PLN conducts technical and financial analysis to ensure that it can achieve energy transition goals with workable planning and maintain a healthy company's finances," Darmawan explained.

He said PLN's commitment to the energy transition had been concrete by carrying out 163 green projects for various places in the country through various funding sources. All of these new and renewable energy development projects (EBT) have a total capacity of 5.1 Gigawatts (GW) with a target of completion in 2030.

"We have a good planning and build a strong alliance to reduce emissions while maintaining financial strength. We want this energy transition to be sustainable to be able to improve the national industry," said Darmawan.

Furthermore, he said, PLN is currently consolidating all green programs that have not received funding to enter CIPP in the JETP scheme. In this case, PLN has prepared 522 potential green energy projects financed by JETP with a total capacity of 15.1 GW until 2030.

Head of JETP Secretariat Edo Mahendra added, in the G20 there has been a mutual agreement to encourage the 3 main targets of Indonesia's energy transition. Namely reducing carbon emissions in the electricity sector, increasing energy mixes from new and renewable energy, and achieving NZE targets.

"This commitment is joint. So that we can first start planning and projects. We want to gain input from this FGD, including the potential for pilot projects that will be produced later," he said.

Edo said, to support this commitment, JETP has provided assistance funds of 20 billion US dollars. However, Edo assessed the need for Government support, especially in terms of policy.

"We need the support of the Indonesian government in terms of policy. Our coordination and implementation need PLN and other institutions. JETP will be in the middle to help all roads," said Edo.