Renewable Power Plants for Large-Scale Industries

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 272.Pers/04/SJI/2020

Date: 26 September 2020

Renewable Power Plants for Large-Scale Industries

The high demand for electricity in the future has pushed the government to accelerate the utilization of new and renewable energy-based sources, including hydro power plants. The government's serious attention is shown in its plan to develop Renewable Energy Based Industry (REBID) program for large-scale hydroelectric power plants (PLTA).

"This (concept) will integrate the supply side and the usage side. It will accelerate the use of large-scale hydro power plants to be absorbed in large industrial markets, such as done at PLTA Kayan," explained Director of Various New, Renewable Energy of Directorate General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources (EMR), Harris, in a virtual discussion held on Thursday (24/9).

Harris said that both large hydro and mini hydro power plants (PLTM) will continue to be developed according to the regulations. "We hope we can develop them with the current regulations. We will accommodate all (developer inputs). In particular, (capacity) which is below or up to 5 Mega Watt (MW), development is done through direct appointment and Feed in Tariff," he said.

If the generating capacity is above 5 MW, the sales and purchase price will be decided on a Business to Business (B-to-B) scheme. "The concept is already in the draft Presidential Regulation," Harris continued.

Ministry of EMR is also cooperating with Ministry of Public Works and Public Housing to utilize existing and new dams. With a potential capacity of 302 MW, these dams are located in East Kalimantan (Arsari/Sepaku Dam 20 MW), Lembakan Dam 20 MW, and Wamboja Dam 18 MW), Papua (PLTM Kalibumi 6.3 MW), South Kalimantan (PLTA Kusan 65 MW), Southeast Sulawesi (PLTA Konawe/Pelosika Dam 10 MW), and Jambi (PLTA Merangin 90-228 MW) .

Especially in North Kalimantan, the government is cascading (aligning) 5 hydro power plants with a total capacity of 6,000-9,000 MW and PLTA Mentarang with a capacity of 1,375 MW. Both power plants are intended to support industrial activities in East Kalimantan.

According to Harris, the Australian Fortescue Metals Group (FMG) is eyeing the large hydro potential in Papua. The company plans to invest in a 20 Giga Watt hydro power plant and in industrial areas in Memberamo, Urumuka, Idenberg, Balein, and Derewo. "We hope they will bring along their industry so that Indonesia will get even higher benefits," he stated.

Finally, Ministry of EMR has continued to optimize projects that have been registered in PLN's List of Selected Providers (DPT) but which have stopped due to a number of reasons. These projects will instead be developed under a pure IPP/mandatory scheme by PLN subsidiaries with a potential of 1,000 to 5,425 MW. (IY)

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