Renewable energy development in Indonesia is still full of challenges, with the slow progress blamed on unattractive renewable energy feed-in tariffs, the lack of fiscal incentives and volatile policies.
By
ARIS PRASETYO
·5 minutes read
Kompas/Wawan H Prabowo
Rows of windmills from the Wind Power Plant (PLTB) decorate the top of a hill in Kam Sophisticated Village, Kahaungu Eti District, East Sumba, East Nusa Tenggara, Tuesday (2/2/2021).
JAKARTA, KOMPAS – Renewable energy development in Indonesia is still full of challenges, with the slow progress blamed on unattractive renewable energy feed-in tariffs, the lack of fiscal incentives and volatile policies.
At the domestic level, the development of renewable energy has been constrained by resources. In the five years between 2015 and 2019, renewable energy power plants in Indonesia grew 400 megawatts (MW) per annum on average. In 2020, installed capacity was increased at an even lower rate than before of below 200 MW.
The Covid-19 pandemic has virtually stalled a number of renewable energy power plant projects. In 2018-2019, hydroelectric power plants (PLTA) recorded the largest capacity growth of 233.9 MW, followed by geothermal power plants (PLTP) with 182.4 MW capacity growth, solar power plants (PLTS) with 68.8 MW growth and then wind power plants (PLTB) with 10.8 MW.
A law on renewable energy would lay down stronger and more certain legal foundations regarding its development.
Indonesian Renewable Energy Society (METI-IRES) chairman Surya Darma said that the absence of regulations on renewable energy tariffs was one of the obstacles to the country’s renewable energy development.
"A law on renewable energy would lay down stronger and more certain legal foundations regarding its development, including aspects of business, pricing and management,” he said when contacted in Jakarta on Monday (15/3/2021).
Solar panels and a row of windmills from the Wind Power Plant (PLTB) adorn the top of a hill in Kam Sophisticated Village, Kahaungu Eti District, East Sumba, East Nusa Tenggara, Tuesday (2/2/2021). The PLTB, which was built in 2013, is no longer able to meet the electricity needs of the local community. Although it can still be used, the battery is not working optimally.In addition, PLTP developers had complained that the price of renewable power remained uncompetitive compared to the subsidized price of fossil fuel energy. Institutional financing for geothermal exploration was also deemed to be discouraging."Not to mention the issues of transparency and the licensing time frame, which could affect the [investment] worthiness of geothermal projects. We also face social problems in the project area, such as opposition from certain groups of people,” said president director Riki F. Ibrahim of PT Geo Dipa Energi.
Some residents who live in Karangtengah village, Batur district, near the Geo Dipa Energi PLTP project in Banjarnegara regency, Central Java, have been demanding transparent information on the power plant project. They have complained about the lack of outreach programs that address local residents, as well as disaster mitigation training programs for the community.
"[Here], there are three well pads [drilling wells] around 500 meters from the houses," Goris, the administrative head of Pawuhan hamlet in Karangtengah village, said on Wednesday (24/2).
Kompas/Wawan H Prabowo
Umbu Hinggu Panjanji checks the water gate of the Mbakuhau Microhydro Power Plant (PLTMH) in Kam Sophisticated Village, Kahaungu Eti District, East Sumba Regency, East Nusa Tenggara, Tuesday (2/2/2021).
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Several renewable energy facilities have halted their operations due to insurmountable obstacles.
One of these is the PLTB plant in Kamanggih village of Kahaungu Eti district in East Sumba regency, East Nusa Tenggara. Atop a hill in the area, developers installed 20 wind turbines with a capacity of 500 watt peak (Wp) each, as well as 20 solar panels of 50 Wp each. The construction of the PLTB and solar panels was financed by the corporate social responsibility (CSR) fund of PT Pertamina in 2013. The power plant is no longer in operation because it ran out of money to cover maintenance costs.
"Nearly half of the windmills have collapsed or are damaged. Some components, like he batteries for storing electric current, inverters and [battery charging] controls are so badly damaged that the [plant] no longer supplies electricity to residential homes," said Serba Usaha Cooperative head Umbu Hinggu Panjanji. 45, who manages renewable energy sources in Kamanggih.
Nearly half of the windmills have collapsed or are damaged.
Umbu added that when the power plant and the solar panels started operating, 23 total households received electricity at a fee of Rp 20,000 per month. Later, the payment system stalled and then stopped. The damaged wind turbines cannot function, while the damaged equipment and components could not be replaced with new parts.
A similar case occurred in Lantan village of North Batukliang district, Central Lombok regency, West Nusa Tenggara. A micro hydro power plant (PLTMH) with an installed capacity of 25 kilovolt amperes (kVA) was developed in 2007 using provincial funds, and its capacity was later expanded to 100 kVA. But the plant has ceased operations since 2013, when the generator’s engine was damaged during a flood.
"The turbine’s engine was badly damaged and no money was available for repairs," said Muhajir, 33, who heads the electricity unit of the Mele Maju Cooperative, which was involved in managing the PLTMH when it was still operational.
Muhajir said that the electricity from the power plant supplied 700 households at a monthly rate of Rp 15,000. The cooperative collected Rp 8 million to Rp 10 million in electricity fees, only Rp 3 million of which went to operational costs. The households now pay monthly fees of Rp 50,000 since they switched to electricity supplied by PT Perusahaan Listrik Negara (Persero).
According Deendarlianto, who heads the Center for Energy Studies at Gadjah Mada University in Yogyakarta, optimizing renewable energy sources in Indonesia required government commitment. The top-down policy approach to renewable energy and low political will were the cause of the sluggish development of renewable energy.
