Indonesia will require $172 billion renewables investment to add 60 GW power capacity
- September 11, 2023
- Posted by: Quatro Strategies
- Categories: Asia Pacific, ESG & Renewable Energy
Indonesian state utility company Perusahaan Listrik Negara (PLN) will require up to $172 billion in investment for renewable energy projects and grid upgrades to add 60 gigawatts (GW) of new renewable power capacity. PLN aims to build 32 GW of new renewable power capacity as a base load and construct new grids to connect an additional 28 GW of renewable power as variable load.
PLN Director Evy Haryadi announced this ambitious plan during an industry forum. He did not provide specific details on the investment amounts needed for renewable power generation, but he did mention that the $172 billion investment until 2040 would also include $5 billion for a smart grid. This smart grid investment is crucial to enable greater integration of variable renewable energy sources like solar and wind power into Indonesia’s electricity system.
Haryadi emphasized the importance of grid development, stating, “There is no transition without transmission.” He highlighted the challenge of transmitting power from remote locations to meet demand.
This initiative aligns with Indonesia’s commitment to reduce its reliance on coal-fired power plants, which currently constitute the majority of the country’s power generation.
As part of its efforts to combat climate change, Indonesia has pledged to achieve net-zero emissions by 2060. Expanding renewable energy capacity and improving the electricity grid are critical steps toward achieving this goal.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Iran conflict drive diesel spike, renewing fears over Europe’s energy security
The ongoing Iran conflict has triggered a sharp surge in global diesel prices, outpacing the rise in crude oil and exposing the fragility of Europe’s diesel-dependent energy system. While refiners in the region are temporarily benefitting from higher margins, the broader market outlook is increasingly volatile due to geopolitical tensions and a complex policy environment.
Since the outbreak of hostilities on June 13, Brent crude has climbed by over 10%, breaching $76 per barrel, as investors weigh the risk of Middle East supply disruptions—particularly in the Strait of Hormuz, a vital chokepoint for global oil flows. Around 20% of the world’s crude and refined products pass through this narrow waterway.
Europe’s methane law runs into U.S. hardball
Washington is pressing Brussels for a carve-out that would effectively keep U.S. oil and gas exports outside the practical reach of the European Union’s new methane import regime for most of the next decade.
A U.S. government paper circulated to EU governments ahead of an EU energy ministers’ meeting calls the EU’s methane import rules a non-tariff barrier and asks the bloc to postpone any requirement that U.S. exporters provide methane-emissions data until October 2035, while also seeking “equivalence” treatment for U.S. rules and an assurance that penalties would not be applied to U.S. cargoes that fail to meet EU requirements.
Canada expedites approval process for new nuclear projects
Canada is poised to expedite the approval process for new nuclear projects, aiming to bolster its nuclear energy sector while addressing environmental concerns. Energy and Natural Resources Minister Jonathan Wilkinson announced that while new major projects, including nuclear reactors…