Indonesia's state utility, Perusahaan Listrik Negara (PLN), plans to add 32 GW of renewable energy capacity and invest in grids that would be able to connect to more renewable energy.
The plan is part of the company's efforts to accelerate the adoption of renewables and reduce reliance on coal, which is currently accounts for about half of Indonesia's power output.
PLN’s Chief Executive, Darmawan Prasodjo, said that the company is revising power supply master plan to incorporate more renewables.
Under the current plan for 2021-2030, PLN aims to expand renewable power capacity by 20.9 GW, or 51% of its total new additional power generation capacity for the period.
"With this accelerated renewable energy development, 75% of our additional generation capacity will be based on renewables and 25% will be gas-based," he said on the sidelines of the ASEAN Indo-Pacific Forum on September 6.
Darmawan did not specify how the planned change would affect the country's power source mix. Currently, about 14% of power is generated from renewables.
The company is also planning to renew its grid to connect more renewable energy to its electricity networks, which will allow PLN to increase its variable power load from renewables to 28GW from currently 5GW, he mentioned.
Indonesia’s Minister of Investment Affairs, Luhut Pandjaitan, said on the same day that the government hopes funds pledged under the Just Energy Transition (JETP) would help finance PLN's planned grid installation.
Fabby Tumiwa, executive director at think tank Institute for Essential Services Reform and part of JETP working group, said the country needs to overhaul power tariffs policy to allow wider adoption of renewables.
Meanwhile, Indonesia has revised local content rules for solar panels to encourage more investment. The government had previously required that 60% of the components of a solar panel be made in Indonesia, but now this requirement has been postponed until 2025.