Indonesia, a nation grappling with escalating energy demands and a resolute commitment to climate action, has unveiled an ambitious Electricity Supply Business Plan (RUPTL) by its Ministry of Energy and Mineral Resources, charting a transformative course for its power sector over the 2025-2034 period.
The blueprint aims to inject a substantial 69.5 GW of new installed capacity, with a remarkable 76% slated to originate from renewable sources and advanced storage systems. This strategic pivot signifies Indonesia’s unwavering dedication to achieving its Net Zero Emission (NZE) target by 2060, propelling the archipelago towards a future underpinned by zero net carbon, eco-friendly, and sustainable energy infrastructure, vital for its burgeoning cities and diverse population. The initial five-year phase of the RUPTL, spanning 2025-2030, sets a formidable target of 27.9 GW in new capacity. This includes a significant 12.2 GW from renewables, alongside 9.2 GW from gas-fired power plants, 3.5 GW from coal-fired power plants (primarily those already under construction), and 3 GW from storage systems such as batteries and pumped-storage hydropower. This balanced approach in the immediate term acknowledges existing commitments while laying a robust foundation for an accelerated transition. The subsequent phase, from 2030 to 2034, demonstrates an even more pronounced shift, planning for an additional 37.7 GW of renewable and storage capacity, with only 3.9 GW allocated to thermal power plants. This trajectory underscores a determined effort to progressively phase out reliance on fossil fuels, fostering a healthier urban environment and reducing the carbon footprint of industrial activities.
Delving deeper into the renewable energy mix, the plan outlines substantial installations across various clean technologies. Solar power is set to lead with 17.1 GW, leveraging Indonesia’s abundant insolation. Hydropower, a critical and proven renewable resource, will contribute 11.7 GW, while wind power is targeted for 7.2 GW. Geothermal energy, particularly significant for Indonesia given its volcanic geology, is slated for 5.2 GW, and bioenergy will add 0.9 GW. Intriguingly, the plan also includes the construction of two small nuclear reactors, each with a 250 MW capacity, located in Sumatra and Kalimantan, signalling a diversified approach to ensure energy security and stability as the nation transitions away from carbon-intensive sources. Parallel to the generation capacity expansion, the RUPTL also prioritises the robust enhancement of the national power transmission network. The government aims to deploy nearly 48,000 kilometres of circuits and 108,000 MVA of substation capacities across the vast Indonesian archipelago. This comprehensive grid modernisation is essential for integrating the influx of new renewable energy sources, ensuring efficient power distribution, and bolstering grid stability. Furthermore, the Village Electricity Program (Lisdes) aims to electrify 5,758 remote villages, targeting the construction of 394 MW of power plant capacity and connecting approximately 780,000 households. This inclusive approach to electrification underscores a commitment to equitable energy access, a cornerstone of sustainable development and empowering rural communities.
The total investments required to realise this ambitious vision are estimated at a staggering IDR 2,967.4 trillion (approximately US$182 billion). Notably, a significant portion of these investments, around 73% of the power plant development, is expected to come from partnerships with private companies or independent power producers (IPPs), with PT PLN group undertaking only 27%. This model of leveraging private capital and expertise is crucial for accelerating the energy transition, fostering innovation, and ensuring the timely delivery of large-scale projects. The RUPTL 2025-2034 is therefore not merely an energy blueprint; it is a holistic strategy that aligns Indonesia’s economic growth with its environmental responsibilities, driving the creation of smart, resilient, and climate-neutral cities for its growing population. The emphasis on renewable energy, grid modernisation, and rural electrification paints a compelling narrative of a nation committed to a sustainable and equitable energy future.
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