Perusahaan Listrik Negara (PLN), Indonesia’s state utility company, seeks a $700-million investment to deploy a 200 MW solar panel that will replace diesel power generators to reduce carbon emissions, the company announced on May 27.
The plan is part of PLN's target to achieve net-zero carbon emissions by 2060. The company aims to install 4.68 GW of solar panels between 2021 and 2030.
The 200-MW solar installation is the initial phase of a broader plan to replace 1 GW of diesel power plants with solar power, according to PLN’s director, Evy Haryadi. However, he didn’t provide specific details regarding the timeline for the initial phase.
PLN is seeking support from the Just Energy Transition Partnership (JETP) agreement signed last November at the Group of 20 Summit with the United States and Japan to help Indonesia shift away from fossil fuels.
A coalition of countries has pledged $20 billion of public and private financing to facilitate Indonesia's transition to cleaner energy under the JETP.
Indonesia plans to finalize a comprehensive plan for JETP fund allocation by August, while PLN's plan to replace diesel power with renewables will serve as a pilot program in JETP, said Edo Mahendra, head of Indonesia's JETP Secretariat.