Renewable Energy In Indonesia

The Jokowi's administration, through the Ministry of Energy and Mineral Resources (ESDM), has recently issued a Ministerial Decree No. 1415 K/20/MEM/2017 that officially approves the Business Plan of PT PLN (State Owned Electricity Corporation) on RUPTL for 2017-2026 or Electricity Power Supply Business Plan 2017-2026. This business plan provides PLN with clear directions and guidelines for developing the Indonesian power infrastructures and distribution systems.

The new RUPTL sets the Indonesian economic growth assumption at 6.2% per year, with electricity demand projected to grow by an average of 8.3% annually from 2017-2026. During the period, the government's PLN and private investors are expected to build 77.8 GW of power generation, 67,000 kilometers of the transmission network, 464 kilometers of distribution networks, and 222,000 MVA of substation transformers across the Indonesian archipelago.

Investment in Renewable Energy

Despite the domination of electricity production from coal, oil, and gas sources on the government's energy mix portfolio to reach the 35,000 MW programs, renewable energy has also received some serious attention from both the government and investors to promote and invest resources in this potential sector. For a quick note, the coal-fired power sector is still dominated by a state-owned corporations such as PT. Indonesia…