On November 9, 2023, Indonesian President Joko Widodo inaugurated Southeast Asia's largest floating solar power plant in West Java, Indonesia. It is also the third largest solar farm in the world.
The 192 megawatt peak power plant (MWp) is a project led by Indonesian company Perusahan Listrik Negara (PLN) and Abu Dhabi renewable energy company Masdar. The project was estimated to cost around $143 million and is part of the government's efforts to harness Indonesia's huge renewable energy potential and achieve net-zero emissions by 2060.
The floating solar farm is expected to generate 245 gigawatt hours of electricity per year, enough to power 50,000 homes. The Indonesian government intends to expand the project to 500 MW and potentially produce up to 1,000 MW in the future.
Indonesia's path to renewable energy
Indonesia has committed to sourcing 23% of its energy mix from renewables by 2025, but today it is only 12%. It is the world's largest coal exporter and coal supplies 60 percent of its electricity generation.
In September 2022, Indonesian Public Enterprises Minister Erik Thohir said $600 billion in capital support would be needed to generate 15 GW of coal-fired power over the next three decades. The Just Energy Transition Partnership (JETP) is therefore a step towards meeting this need. JETP is a new model of international cooperation on specific national efforts to combat climate change. The JETP model combines public and private investments to support climate finance in developing countries, particularly in transitioning away from fossil fuel-based energy production. In addition to promoting the energy transition, the JETP model aims to promote a green economy and address the economic and social needs of communities vulnerable to the impacts of the energy transition.The Indonesian JETP is co-led by the US and Japan and supported by the UK, Germany, France, the EU, Canada, Italy, Norway and Denmark. Of JETP's initial $20 billion in funding, $10 billion will be raised from public sector commitments and $10 billion will be raised from various private sector financial institutions.
The Indonesian government has made green economy development a key part of its energy transition and economic development strategy. In addition to transforming Indonesia's energy mix, JETP aims to improve the business environment of Indonesia's green economy by building renewable energy infrastructure and improving financing instruments for sustainable projects.
Great geothermal potential
Indonesia is home to about 40 percent of the world's geothermal resources, and the sector will play a key role in the country's energy sustainability goals.
Despite Indonesia's vast resources, investing in the geothermal sector faces many challenges, from a difficult regulatory environment to a lack of supporting infrastructure. However, the sector promises long-term potential, especially as the government is targeting 5,000 MW of capacity by 2025.
Indonesia's geography puts the island nation in a unique position to harness geothermal energy. Seismic activity around Indonesia, which lies along the Ring of Fire, is very active and offers great potential for geothermal energy. Due to these characteristics, 23.7 GW of geothermal energy has been distributed to more than 300 locations in Indonesia.
According to the National Energy Master Plan (RUEN), Indonesia plans to achieve 7.24 GW of geothermal energy by 2025 - which government officials say will require $15 billion in investments - and 9.3 GW by 2035. However, in June 2020, Ida Nuryanti Finahari. , director of geothermal energy at the Ministry of Energy and Mineral Resources (ESDM), said Indonesia will achieve its goal of producing about seven gigawatts of geothermal energy within five years by 2030.Although the development of geothermal energy in Indonesia has not progressed as expected, Indonesia remains one of the largest producers of geothermal energy in the world. Currently, Indonesia has an estimated installed geothermal energy capacity of 2.28 GW; The United States has 2.6 GW of installed geothermal energy capacity, the largest in the world.
about Us
The ASEAN briefing is prepared by Dejan Shira & Associates. The company supports foreign investors across Asia and has offices in Singapore, Hanoi, Ho Chi Minh City and Da Nang, Vietnam, as well as in ASEAN, including Jakarta, Indonesia. We have partner companies in Malaysia, the Philippines and Thailand as well as practices in China and India. Please contact us at asean@dezshira.com or visit our website at www.dezshira.com.
Anchoring problem of a floating solar power plant SolarPlaza webinar
