Indonesia has set a goal to increase its renewable energy capacity by the year 2025, but it seems that the country may fall short of this target. The Energy and Mineral Resources Ministry has expressed concerns that the current policies and prices for renewable energy are not competitive enough to meet the goal.
Eniya Listiani Dewi, the director general of renewables at the energy ministry, revealed that state-owned electricity company PLN would need to construct renewable energy plants with a total capacity of 8.2 gigawatts by the end of 2025 to achieve the target. However, projects in the pipeline, including solar, hydroelectric, micro-hydro, and wind power plants, only add up to 5.83 GW in total capacity.
The estimated investment needed for these projects is around $14 billion. If this investment can be secured, renewable energy could make up around 21.2 percent of Indonesia’s national energy mix. Putra Adhiguna from the Energy Shift Institute mentioned that there are investors interested in funding renewable energy projects in Indonesia, but the lack of credible projects with clear procurement timelines is a significant challenge.
Adhiguna suggested that the government should prioritize short-term targets that can be achieved within the next 12 to 24 months to attract more investments in the renewable energy sector. By focusing on projects that can be delivered in the near future, Indonesia may have a better chance of reaching its renewable energy goals.
Despite the current challenges, there is still hope for Indonesia to increase its renewable energy capacity. With the right policies and investments in place, the country can work towards a more sustainable and environmentally friendly energy future. It is essential for Indonesia to address the issues hindering the growth of renewable energy and create opportunities for investors to participate in building a cleaner energy infrastructure. By taking proactive steps and making strategic decisions, Indonesia can move closer to achieving its 2025 renewable energy target.