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Hydropower replaces diesel in Eastern Indonesia, cutting costs by over 85%

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Energy Minister Bahlil Lahadalia attends a micro-hydropower plant inauguration. (Photo: ESDM)

Indonesia is ramping up efforts to replace diesel-fired generators with small hydropower facilities. On Oct. 30, two new power plants in East Nusa Tenggara and West Papua were inaugurated, while another broke ground on the same day. The projects are expected to help local communities move away from high-carbon power generation and cut household energy expenses.

PLN’s de-dieselization program drives renewable shift

In many parts of Indonesia, communities remain heavily reliant on diesel power. Under the state utility PLN’s de-dieselization program, the country is gradually phasing out diesel power plants and replacing them with renewable sources such as hydropower, solar, and battery storage systems — aiming to expand electrification while promoting clean energy development.

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