According to a senior government official, Indonesia is laying down rules for the flow of renewable electricity across borders, using a series of power cables that would connect thousands of kilometers of islands.
Indonesia has enough raw materials, including copper for cables, to carry out the mega-project, Minister of Energy and Natural Resources Arifin Tasrif said at the Singapore International Energy Week on Tuesday (October 25). In 2021, Indonesia was the ninth largest copper producer in the world.
Tasrif's comments came four months after Indonesia's investment minister told local media that the government had no plans to sell renewable electricity to other countries .
Asked if the renewable energy export ban would be lifted, Tasrif said, "Selling and importing [electricity] is very easy, but [needs to be developed] because the regulations relate to land use."
Tasrif added that the power connections will be sent to Southeast Asian countries and that the work will be carried out in stages, without naming specific countries or giving a specific timeline. He said the cables will carry renewable electricity.
A power grid plan called Nusantara Supergrid was introduced in 2020. The main aim is to connect the main islands of Indonesia with high-voltage cables that can withstand the fluctuating load of renewable energy sources such as wind and solar power.
A few local links will be completed over the next two years, although many are still under investigation. Two connections to other countries have also been opened: one to Malaysia, expected to be completed by 2030, and another to Singapore , according to the Indonesian government .
Indonesian analyst firm Katadata has calculated that the project will require an investment of "up to $10 billion" . There are also regulatory restrictions on renewable energy expansion in the world's fourth-most populous country, he said in a 2021 review. Excess coal is another challenge Indonesia is facing in a bid to revitalize its energy sector , experts said recently.
The Indonesian Super Grid is expected to be part of the Southeast Power Grid Plan for its 25-year operational life. Few of the proposed links have been built so far, and most of the trade is for Laos to sell its abundant hydroelectric power to its neighbors.
Importing clean energy is a key decarbonization path pursued by Indonesia's northern neighbor Singapore, which aims to source around a third of its energy supply from low-carbon sources abroad by 2035.
Malaysia banned renewable energy exports just days before Singapore announced it last October, and Indonesia nearly eight months later.
However, the Singapore government continued to insist on proposals to import energy from the private sector . The group, led by Singaporean renewable energy company Sunseap, also signed a deal with corporate partners to send solar power from the Indonesian islands of Riau and Batam to Singapore ahead of the Indonesian ban.
Both Indonesia and Malaysia have facilitated Singapore's plans to route renewable energy from Laos and Australia through the country.
"Indonesia is a country with more renewable energy sources than other ASEAN [Association of Southeast Asian Nations] countries," said Dr. Zhong Sheng, Senior Researcher at the Institute of Energy Research, National University of Singapore. .
"A complete ASEAN energy system connecting all ASEAN countries can better utilize renewable energy sources on the grid to achieve climate targets," Zhong said .
