Companies Eye Clean Energy Transition

The utilization of clean and renewable energy in the business sector is increasingly expanding. Collaboration is needed in the effort to accelerate the transition to renewable energy.

ALIF ICHWAN

Indonesian government has been asking its administrations and private sectors to use solar generated energy in their buildings.

JAKARTA, KOMPAS – The participation of businesses in the use of clean energy continues to expand. A total of 233 corporate and industrial subscribers in Indonesia are purchasing electricity generated from renewable energy sources to reach 1 terawatt-hours, or the equivalent of 1,000 gigawatt-hours of green electricity.

Retail and Commercial Director Edi Srimulyanti of PT Perusahaan Listrik Negara (Persero) said the state electricity company was increasing its supply of clean energy for subscribers through the renewable energy certificate (REC), an internationally recognized market instrument. At the international level, PLN has registered 3 terawatt-hours (TWh) in RECs. A total of 233 corporate subscribers have purchased RECs with a sales value equivalent to 1 Twh, including Nike, H&M, Toyota, Uniqlo and HM Sampoerna.

Srimulyanti added that the state-owned energy firm still had 2 Twh in RECs for use by the public and other investors. Among the establishments that have already purchased RECs was the State Palace. “We can declare that the energy we supply to subscribers are generated from clean energy sources,” she said at the Cut the Tosh Collaboration Summit in Jakarta on Tuesday (18/10/2022).

Under its medium-term program until 2030, according to Srimulyanti, PLN will build renewable energy power plants.

Indonesia has been committed to reducing carbon emissions by 29 percent by 2030 towards a target of net zero emissions (NZE) by 2060. PLN has drawn up a road map to achieve this target, which includes not building any new fossil fuel power plants, excepting steam power plants that have concluded their power purchase agreements.

Under its medium-term program until 2030, according to Srimulyanti, PLN will build renewable energy power plants. In addition, it will reduce the use of diesel fuel in remote regions through the transition to renewable energy that takes advantage of local resources. The company is inventorying local resources that can be used to generate energy.

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On the same occasion, PT Multi Bintang Indonesia president director René Sánchez Valle said the company had targeted using renewable energy sources for all operations and transitioning to green production processes by 2025. Towards this end, the company was cooperating with all parties to accelerate its transition to renewable energy.

“This active involvement is important to speed up the realization of our common goal, which is to achieve net zero emissions by 2060,” said Valle.

KOMPAS/P RADITYA MAHENDRA YASA

An geothermal powerplant instalation in Lahendong, Minahasa, North Sulawesi, Wednesday, (29/9/2021)./Kompas/P Raditya Mahendra Yasa

Availability of options

Industry Minister Agus Gumiwang Kartasasmita added that the transition to green and renewable energy was necessary to save the planet and ensure that activities were sustainable. The transformation to achieve net zero emissions needed cross-sector cooperation. “[The effort to] increase the availability of renewable energy options is the key to accelerating the realization of Indonesia’s net zero emissions goal,” he said.

He said it was necessary for companies in Indonesia to increase their renewable energy achievements further to support the program to reduce greenhouse gas emissions by 2030 and to realize a carbon neutral Indonesia by 2060. “Companies should [grow their capacity] as contributors, however little they can offer, in the efforts to realize a healthier world, reduce their carbon footprint, and turn Indonesia into a carbon neutral country by 2060,” he emphasized.

Not just a tag line

Indonesian Chamber of Commerce and Industry chairman Arsjad Rasjid said on Tuesday at the B20 Sustainability 4.0 Awards in Jakarta that pursuing the principle of sustainable business offered many advantages, such as enhancing a company’s image, building consumer confidence and attracting more investors. For the public, sustainable businesses could increase the capacity of communities in the area where the business operated.

“In the future, we hope the sustainability principle can serve as the scenario and strategy for maintaining the resilience and securing the net profits of businesses,” said Arsjad.

This article was translated by Aris Prawira.