DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY & ENERGY

CONSERVATION
MINISTRY OF ENERGY AND MINERAL
RESOURCES

New and Renewable Energy

Investment Policies and
Opportunities
Senda Hurmuzan Kanam
Head of Survey and Testing Center for Electricity, New, Renewable Energy and Energy
Conservation

Presented at:
Forum Energizing Indonesia Academy New Normal Series-10
Jakarta, 12 Juli 2023
GHG EMISSION REDUCTION IN ENERGY SECTOR
Enhanced NDC 2030 Achievement of Renewable Energy Mix & Emission Reduction
2010 GHG GHG Emission by 2030 Reduction
659.3
Emission 522.9
No Sector
(Million Ton BaU CM1 CM2 CM1 CM2 448.6
CO2e) 366.4

1. Energy 453.2 1,669 1,311 1,223 358

358 446
2. Waste 88 296 256 253 40 45.3
3. IPPU 36 70 63 61 7 9
4. Agriculture 111 120 110 108 10 12
5. FOLU 647 714 217 -15 500 729
TOTAL 1,334 2,869 1,953 1,632 915 1,240
Unit : million tons of CO2e

▪ By 2022, the energy sector was able to reduce GHG emissions by

91.5 million tonnes of CO2e.
▪ Energy sector mitigation actions in 2022 include (million tons CO2e):
implementation of renewable energy (36.61), application of energy
efficiency (20.54), application of low-carbon fuel (15.47), use of clean
generation technology (12.31), and other activities (6.57).
Directorate General of New, Renewable Energy & Energy Conservation @2023 2
INDONESIA’S ENERGY SECTOR ROADMAP TOWARDS NET ZERO EMISSION
2060
Emission Reduction Target Energy Sector Roadmap for NZE 2060 or
BaU
Unit : million tons of CO2e sooner
Supply: Supply: Supply:
NRE Development based on Green Hydrogen utilization begin Green Hydrogen utilization
RUPTL 2021-2030, cofiring in 2031 for transportation sector, begin to substitute natural gas,
on CFPP BESS in 2034 NRE dominate the energy mix

Demand: Demand: Demand:

Induction stove, gas Induction stove, gas network, Induction stove, gas network,
network, DME, B35 B40 mandatory, EV, energy B40 mandatory, EV, & hydrogen
mandatory, EV. management, & hydrogen for for industry.
transportation sector

2021-2025 2026-2030 2031-203 2036-2040 2041-2050 2051-2060

5
Implementation Strategies:
1. Electrification (EV, electric stove, etc) Supply: Supply: Supply:
NRE Development based on Nuclear PP starting 2039, All electricity are generated by
2. Renewable energy development acceleration (on grid,
RUPTL 2021-2030, pump massive Solar PV development, NRE PP. Remaining GHG
offgrid, biofuel) storage starts by 2025 along with onshore and offshore emission level: 129 million
3. Gradual retirement of coal-fired PP. wind PP. tons CO2.
Demand:
4. CCS/CCUS Induction stove, gas Demand: Demand:
5. Development of new energy (hydrogen, ammonia) network, B40 mandatory, Induction stove, gas network, B40 Induction stove, gas network,
EV, energy management. mandatory, EV, and CCS for EV, and CCS for industry
6. More efficient technology utilization. cement and steel industry

Directorate General of New, Renewable Energy & Energy Conservation @2023 3

 GREEN RUPTL PT PLN (PERSERO) 2021 – 2030 HYDRO PP
UPDATE STATUS AND INVESTMENT OPPORTUNITIES 01 Additional Capacity until 2030 : 104 GW
GHG Emission Reduction : 46.46 million tons
CO2e
Investment Required : 25.63 Billion USD
SOLAR PV PP
02 Additional Capacity until 2030 : 4.68 GW
GHG Emission Reduction : 6.97 million tons
NRE PP CO2e
NRE PP Investment Required : 3.2 Billion USD
2,261 MW
5,237 MW GEOTHERMAL PP
NRE PP
1,741 MW
03 Additional Capacity until 2030 : 3.35 GW
GHG Emission Reduction : 22.4 million tons
CO2e
Investment Required : 17,.35 Billion USD
BIOENERGY PP
04 Additional Capacity until 2030 : 590 MW
GHG Emission Reduction : 4.61 million tons
CO2e
Investment Required : 2.2 Billion USD
WIND PP
NRE PP
NRE PP
9,634 MW 2,050 MW 05 Additional Capacity until 2030 : 597 MW
GHG Emission Reduction : 2.22 million tons
CO2e
Investment Required : 1.03 Billion USD
No PP 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total RUPTL Status NRE PP - BASE
1 Geothermal 136 108 190 141 870 290 123 450 240 808 3,355
2
3
Large Hydro
Mini Hydro
400
144
53
154
132
277
87 2,478
289 189
327
43
456 1,611 1,778 1,950 9,272
- 2 13 6 1,118
06 Additional Capacity until 2030 : 1.01 GW
GHG Emission Reduction : 4.51 million tons
4 Solar PV 60 287 1,308 624 1,631 127 148 165 172 157 4,680 CO2e
5 Wind Turbine - 2 33 337 155 70 - - - - 597 Investment Required : 5.49 Billion USD
6 Bioenergy 12 43 88 191 221 20 - 15 - - 590 NRE PP - PEAKER
7
NRE PP –
Base
NRE PP -
- - - - - 100 265 215 280 150 1,010 07 Additional Capacity until 2030 : 300 MW
GHG Emission Reduction : 2.01 million tons
8 - - - - - - - - - 300 300 CO2e
Peaker
Directorate General of New, Renewable Energy & Energy Conservation @2023 Investment Required : 0.28 Billion USD 4
Total 752 648 2,028 1,670 5,544 978 991 2,458 2,484 3,370 20,923
STRENGTHENING REGULATIONS TO ACCELERATE NRE
INVESTMENT
PRESIDENTIAL REGULATION NO 112 TAHUN
2022
Renewable Energy Development is carried out based on the RUPTL, which takes Prohibition of new CFPP
into account the target of the renewable energy mix, supply-demand balance, and applies to the business area
the economic value of power plants
PLN, Non-PLN business
Ceiling Price (HPT) for 2-stage staging without escalation with location factors
applies to stage 1, for each type of renewables: area, and IUPLTS holders.
Type Stage 1 (cUSD/kWh) Stage 2 (cUSD/kWh)
Geothermal 7,65 – 9,76 x F 6,5 – 8,30
The ban on new CFPP has been in place, but there are
Hydro 6,74 – 11,23 x n x F 4,21 – 7,02 exceptions. What are the exclusion criteria?
Excess Power 1. CFPP that have been stipulated in the RUPTL (both PLN business
5,80 x 0,7
Hydro areas and non-PLN business areas) before the enactment of
Solar PV 6,95 – 11,47 x n x F 4,17 – 6,88 Presidential Decree Number 112 of 2022
Wind 9,54 – 11,22 x n x F 5,73 – 6,73
2. CFPP that meets 3 requirements, namely:
Biogas 7,44 – 10,18 x n x F 4,46 – 6,11 x n
a. Integrated with the industry:
Biomass 9,29 – 11,55 x n x F 7,43 – 9,24 x n
n: Technical Factor (0.7 – 1.0) F: Location Factor (1 – 1.5) • built oriented to increase the added value of natural resources, or;
• included in the PSN, which has a major contribution to job
B to B (requires MEMR approval): Peaker Hydro; Biofuel PP; Ocean PP
creation and/or national economic growth
▪ Presidential Regulation 112/2022 also mandates the Government c.q. The b. Commit to reducing greenhouse gas emissions by at least 35%
MEMR to prepare a roadmap to accelerate the retirement of the CFPP's within 10 years since the CFPP operates compared to the average
operational life and limit the development of new CFPPs, except for those
emission of CFPP in Indonesia in 2021 through technology
development, carbon offsets, and/or Renewable Energy mix; And
CFPPs that have been listed in the RUPTL and which are integrated with
c. Operates the longest until 2050.
industry.
▪ Local content implementation (TKDN) is carried out in accordance with
prevailing laws and regulations
*PSN= National Strategic Project
Directorate General of New, Renewable Energy, and Energy Conservation @2023 5
EFFORTS TO INCREASE THE ROLE OF EBT IN ELECTRICITY
Implementation Of Biomass Cofiring Updates on The Roadmap of CFPP Early Retirement
Biomass cofiring at CFPP reduces coal use by utilizing biomass
fuel as a partial replacement for coal while still paying attention to
fuel quality as needed. MEMR has developed a PLTU early
Implementation of Co-firing 2023 retirement roadmap according to the
mandate of Presidential Regulation
112/2022 in coordination with:

36 Implementation

16 Not Yet Implementation

Roadmap Biomass Cofiring CONTENT

1. The Coal Fired Power Plant (CFPP) early retirement roadmap
until 2030 is targeted to achieve CFPP early retirement with a
total capacity of 6.1 GW in accordance with the JETP emission
reduction target of 290 million tons CO2 in 2030. To ensure the
reliability of the power system, several alternative scenarios
such as the use of NRE with batteries , the use of NRE with the
Java-Sumatra interconnection, and the PLTU cofiring scenario is
a maximum of 10%.
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2. This roadmap has included case studies on early retirement
PLTU (Lokasi) 25 36 42 52 52 52 52 52 52 52
Produksi (TWh) 0,18 0,59 0,95 3,12 11,71 11,60 11,31 11,35 11,39 11,10 transaction proposals for CFPP Pelabuhan Ratu (3x350 MW)
Biomass (jt Ton) 0,25 0,57 1,08 2,83 10,20 10,11 9,08 9,11 9,14 8,91 and CFPP Pacitan (2x315 MW) with the assumption of early
Directorate General of New, Renewable Energy, and Energy Conservation @2023 6
SUPER GRID TECHNOLOGY
The key to enhance NRE penetration
Cap Cap
KALIMANTAN
(GW) SULAWESI
(GW) Cap @ 2060
Bioenergy 10 Bioenergy 9 National
ASEAN
Power Geothermal 0 ,2 Geothermal 3 Colour: Tipe (GW)
Malaysia Hydro 54 70 kV Existing
Grid Hydro 5 Bioenergy 60
Solar 69 Solar 27 150 kV Plan
2 Wind 17 275 kV
Geothermal 22
ASEAN Wind 11 NZE
Nuclear 26 (Supergrid) Hydro 72
5 Singapura TOTAL
TOTAL 54 500 kV
2027 175 Solar 421
Bintan 0
4
205 Wind 94

8
202
2035
2029 Ocean 8
1 Nuclear 31
Cap TOTAL 708
SUMATERA 8 2052
(GW)
Bioenergy 19 2056
9
4

2035
Geothermal 9
204

3
Hydro 8 6
10
Cap Interconnection
5

Solar 146 MPNT

204

(GW)
investment will be
6
Wind 10 20

204
44 Bioenergy 6
Ocean 7 7
Nuclear 6 Cap 2036
Geothermal
Hydro
1
2
reduced if REBID is
TOTAL 205 JAMALI
Bioenergy
(GW)
16
2049 2052
2056
Solar
Wind
71
16
implemented

56
Geothermal 8 TOTAL 96

20
2046
Hydro 3
Solar 109
Wind 40
Ocean 1 B. Sill in narration stage and need further study: 8. 150 kV Bangka-Belitung Interconnection (needs further
TOTAL 178 5. Sumatera-Singapura Interconnection (included study to support Sumatera-Kalimantan Interconnection
A. Already included in the RUPTL project list: Sumatera-Bintan Interconnection), supporting Plan);
1. 150 kV Sumatera-Bangka Interconnection (2022); cooperation framework of ASEAN Power Grid, needs 9. Belitung-Kalimantan Interconnection (needs further study
further study; as a part of Supergrid Nusantara Program);
2. 500 kV Sumatera-Malaysia Interconnection (2030), supporting
cooperation framework of ASEAN Power Grid; 6. 500 kV Sumatera-Jawa Interconnection (needs further 10. 150 kV Baubau-Sulbagsel Interconnection (needs further
study considering supply and demand); study to support reliability in Bau-Bau).
3. 150 kV Kalimantan Interconnection (2023);
7. 150 kV Bali-Lombok Interconnection (needs further
4. 150 kV Sulbagut-Sulbagsel Interconnection (Tambu-Bangkir COD
study to support Jawa-Nusa Tenggara Interconnection
2024).
Directorate General of New, Renewable Energy, and Energy Conservation @2023Plan); 7
MICROGRID CONCEPT

First Priority is from Renewable Energy

Generation.

Generator Diesel and Utility Grid is the

last priority.

Directorate General of New, Renewable Energy, and Energy Conservation @2023 88

JUST ENERGY TRANSITION PARTNERSHIP (JETP)
Supporting Sustainable, Just, Affordable Energy Transitions, and Inclusive Investments to Keep Temperature Rise Below 1.5°c

20 billion USD funding

Funding mobilization will be carried out through the Indonesia Country Platform as a financing mechanism for early
retirement of power plants and the development of renewable energy PP with PT Sarana Multi Infrastruktur (PT. SMI)
as the manager who will partner with the Glasgow Financial Alliance for Net Zero (GFANZ).

Projected CO2 Emissions in Different Scenarios JETP Programs and Required Investment

Unit: Million Tons CO2

Directorate General of New, Renewable Energy, and Energy Conservation @2023 9

PRIORITY ACTIVITIES & VARIOUS NRE PROJECTS FOR JETP
FUNDING
I. Grid & 1 Less attractive for investment
Interconnection Identified NRE Projects
2 An agreement has been reached and will be followed up with project proposals in
Comprehensive Investment Plan (CIP). 1. De-dieselization. 1 GWp solar
PV to replace diesel, CAPEX
USD 1.2 Bn
II. 1 At the beginning of JETP discussion, IPG gave special attention to reduce coal
Decommission- 2. Early coal retirement (before
utilization as soon as possible. 2030). 5 GW, USD 5 Bn grant.
ing
Coal-Fired 2 An agreement has been reached and will be followed up with project proposals in 3. Renewable baseload and
VRE. 42 GW, CAPEX USD 115
Power Plant Comprehensive Investment Plan (CIP).
Bn
4. Green energy enabling
III. Renewable 1 All parties agree and look for efforts to accelerate the NRE utilization. transmission system. CAPEX
Energy USD 7.7 Bn
Development
2 Most of JETP funding is directed to build NRE power plant. Iit should focus on 5. Nuclear, 3 GW, CAPEX USD
the construction of Solar PP and Wind PP. 17 Bn
6. Advanced control center.
3 Regarding the funding structure, it is necessary to explore and develop blended
CAPEX USD 48 Mn
finance model.
7. Smart grid. USD 40 Mn

IV. 8. Capability and capacity

Decarbonization: Increasing the utilization of electricity and developing related industries (such as building. USD 20 Mn
Electrification EV and photovoltaic) in the country was agreed to be supported by JETP funding. 9. TA for innovative technology
dan EV solutions. USD 20 Mn

Directorate General of New, Renewable Energy, and Energy Conservation @2023 10

Thank you
www.esdm.go.id
Kementerian Energi dan @kesdm
Sumber Daya Mineral

@KementerianESDM KementerianESDM

Address
Jl. Pegangsaan Timur No.1,
Cikini, Menteng Jakarta

Directorate General of New, Renewable Energy, and Energy Conservation @2023 11