Indonesia's PLN plans to build an additional 32GW of renewable energy capacity

The Indonesian state-owned power company Perusahaan Listrik Negara (PLN) plans to continue increasing its renewable energy installation by 32 gigawatts (GW), while investing in upgrading the grid infrastructure to support more renewable energy grid connections. The plan aims to accelerate the construction and grid connection of renewable energy projects, while reducing the country's dependence on coal, which currently accounts for about half of the total installed capacity in Indonesia.

The General Manager of PLN, Darmawan Prasodjo, stated that PLN is revising its overall power development plan to meet the large number of renewable energy installation and grid connection needs in the future. According to the existing 2021-2030 electricity development plan, the company plans to increase the installed capacity of renewable energy by 20.9GW, accounting for 51% of the newly added power generation during this period.

With the accelerated development of renewable energy, 75% of PLN's additional power generation installation will come from renewable energy, and the remaining 25% will come from natural gas electricity. Currently, approximately 14% of Indonesia's installed electricity comes from renewable energy sources.

PLN also plans to upgrade its grid infrastructure to promote the integration of more renewable energy into its power network. This will enable PLN to increase its installed capacity of renewable energy electricity from the current 5GW to 28GW.

As Senior Cabinet Minister Luhut Pandjaitan of the Indonesian government has publicly stated, the Indonesian government hopes that the funds promised under the Fair Energy Transition (JETP) plan will help fund PLN's grid construction work.

The JETP Fair Energy Transition Plan was discussed at a bilateral meeting between US Vice President Kamala Harris and Indonesian President Joko Widodo at the ASEAN Regional Group meeting.

In response to the challenges faced by the JETP investment plan, an Indonesian government spokesperson stated that Indonesia needs to comprehensively modify its electricity pricing system and government to encourage the entire Indonesian society to accelerate the construction of renewable energy projects.

In addition, the Indonesian government has revised the localization composition rules for photovoltaic panels to attract more overseas investment. The requirement that 60% of photovoltaic panel components must be purchased domestically in Indonesia has been postponed until 2025, allowing sufficient time for the domestic photovoltaic industry to create and meet localization requirements.