Indonesia expects to increase its power capacity by 71 gigawatts (GW) during the next decade. To achieve this, the government will rely more on private investors. Bahlil Lahadalia, the country’s energy minister, announced these plans during a recent event. He explained that the government’s responsibility will be to establish transmission lines for renewable energy generating.

Focus on Renewable Power Transmission

According to Bahlil Lahadalia, the government’s power supply plan for 2025-2034 includes 71 GW of new power capacity. On top of that, the plan will add 48,000 circuit-km transmission lines. This is equivalent to 8,000 kilometres. But, private sector involvement is key. Bahlil mentioned that about 60% of the new power plants will be given to private investors, according to a Reuters report.

Also read: Indonesia Welcomes WTO Ruling Against EU’s Palm Oil Biodiesel Ban

During the launch, Bahlil mentioned that the country needs more transmission infrastructure. According to him, the existing lines in Indonesia are not designed to deliver power from renewable sources. The government will, therefore, focus on the development of lines that can support renewable energy generation.

Emphasizing Renewable Energy and Gas

Bahlil noted that 70% of the planned new power plants would utilize renewable energy sources. These could include solar, wind, and possibly nuclear and hydrogen. This is consistent with President Prabowo Subianto’s vision of a fossil fuel independent country. Prabowo has also expressed plans to retire coal power plants within the next 15 years.

Despite the push for renewables, Bahlil pointed out that Indonesia will continue to prioritize natural gas for domestic electricity needs. He emphasized that the country must meet domestic demand first, with any excess being available for export.

Energy Self Sufficiency, Economic Growth

Prabowo, during the launch event, presented his vision on Indonesia’s future energy. He was optimistic about the fact that Indonesia would achieve energy self sufficiency in five years. He again confirmed that energy growth will be the one to help increase the economic growth of the country up to 8%.

Indonesia’s energy future is to be a combination of private investment and government led infrastructure development. Focusing on renewable energy and modernizing transmission lines, the country is expected to significantly increase its power capacity in the next decade.

Convergent Energy and Power (Convergent) stated that it has received a $584.5 million loan from the US Department of Energy (DOE). The loan was secured through the DOE’s Loan Programs Office. The money will help to create a solar photovoltaic (PV) system. In addition, it will fund the development of three stand-alone battery storage systems in Puerto Rico. 

The company will provide Puerto Rico with a more reliable and sustainable energy system. The company intends to do this by integrating solar energy with battery storage. These projects will cut down the island’s reliance on diesel and coal plants. This will ultimately lower pollution and cut down CO2 emissions.

Also read: DOE Announces $101 Million for Carbon Management Test Centers

The company will implement a 100 MW solar PV system combined with a 55 MW/55 MWh battery storage system in Coamo. A total of three utility-scale battery storage systems will be constructed in the municipalities of Caguas, Peñuelas, and Ponce, respectively. These clean, affordable systems will inject directly into the electric grid of Puerto Rico, further cementing the switch toward 100% clean energy by 2050.

Economic Benefits and Other Opportunities

Apart from increasing grid reliability, the projects will bring benefits to the local communities by reducing Puerto Rico’s energy costs. When compared to the continental United States region, energy prices in Puerto Rico are higher. The deployment of these projects will help in cutting down those costs and providing affordable energy.

In addition to decreased costs, the projects will also generate 540 construction jobs. The company is partnering with the Puerto Rico Department of Economic Development and Commerce to align its workforce strategy with local and federal goals.

Clean Energy Future

This US Department of Energy loan worth $584.5 million will facilitate Convergent Energy’s goal of bringing clean energy solutions to Puerto Rico. The projects will lower energy costs while increasing grid resilience. The technologies also align with Puerto Rico’s aim of reaching 100% sustainable energy by 2050.