South Sumatra Boosts Renewable Energy Amidst Dependence on Fossils

The installed capacity of renewable energy generators in South Sumatra has reached 989.12 MW or only 4.7 percent of the potential.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Sumsel Pacu Energi Terbarukan di Tengah Ketergantungan pada Fosil

KOMPAS/RHAMA PURNA JATI

A fleet of coal barges is seen on the flow of Musi River in Palembang, South Sumatra, on Saturday (5/13/2023). Coal is one of the leading commodities that drives the economy in South Sumatra. However, downstream processing is still a major obstacle.

PALEMBANG, KOMPAS — In the midst of dependence on fossil energy, especially coal, South Sumatra a> continue to encourage the development of renewable energy to contribute to efforts to achieve the national net zero emissions target by 2060. On the one hand, this is a challenge, especially in preparing for the economic transformation of dependent citizens on fossils.

Based on data from the Department of Energy and Mineral Resources (ESDM) of the South Sumatra Provincial Government, in 2022 fossil energy will still be dominant in the regional energy mix. Coal contributed 31.59 percent, natural gas 22.68 percent, and petroleum 21.88 percent. Meanwhile, renewable energy is 23.85 percent.

The installed capacity of renewable energy generators in South Sumatra, until 2023, will reach 989.12 megawatts (MW). Biomass power plants (PLTBm), especially those used by companies themselves (captive power)or not connected to the PT Perusahaan Perusahaan Perusahaan PerusahaanEL Negara (Persero) network, are dominant with 802.59 MW . Apart from that, there are contributions from geothermal, water and solar energy.

Also read: Economic Transformation in Coal Producing Regions Needs to Be Prepared

Subnational Coordinator of the Sustainable Energy Access Program at the Institute for Essential Services Reform (IESR), Rizqi Prasetyo, stated that the high dependence on fossil fuels is a challenge. In IESR's analysis, Muara Enim and Lahat regencies are two areas in South Sumatra that are potentially impacted economically if coal is gradually reduced.

"Therefore, a transformation or search for alternative economies is necessary in order to avoid direct impact. Because, until now, they have received coal mining profits sharing (DBH)," said Rizqi during the Jelajah Energi Sumatera Selatan workshop held by the Institute for Essential Services Reform (IESR) in Palembang, South Sumatra on Monday (26/2/2024).

KOMPAS/RHAMA PURNA JATI

Monika (52) is inspecting the micro hydro power plant (PLTMH) turbine located in Dusun IV, Cahaya Alam Village, Muara Enim Regency, South Sumatra, on Tuesday (19/7/2022). PLTMH is the only power plant that provides electricity to the houses of the residents in the village.

According to research conducted by IESR in 2023, DBH from coal mining taxes and royalties significantly contributes to local government revenue. In Muara Enim, for example, DBH contributes up to 20 percent of local income. A decrease in DBH will have a significant impact on operations considering that local government expenditures are mostly for operations (Kompas, 2/9/2023).

Despite the economic dependence, said Rizqi, renewable energy in South Sumatra continues to be expedited. "In Muara Enim, for example. The area produces coal, but also has two geothermal power plants, namely Rantau Dedap and Lumut Balai geothermal power plants," said Rizqi.

Our hope remains that renewable energy will continue to increase.

The share of renewable energy in the South Sumatra regional energy mix is ​​23.85 percent (2022). This figure is higher than the realization of national renewable energy which is 13.1 percent in the primary energy mix (2023). This figure has even exceeded the target of 21.06 percent in 2025 as stated in South Sumatra Regional Regulation Number 4 of 2020 concerning the South Sumatra RUED General Regional Energy Plan.

However, the percentage is still dynamic if referring to the 2021-2030 Electricity Supply Business Plan (RUPTL) by PLN. "In the RUPTL, there is an addition of coal-fired power plants (in South Sumatra) that are currently not operational. However, our hope remains that renewable energy will continue to increase," said the Head of New Renewable Energy Section at Sumsel ESDM Agency, Dewi Yusmarni.

BPMI SEKRETARIAT PRESIDEN

President Joko Widodo inspects the location where a company to process coal into dimethyl ether (DME) will be built in Muara Enim Regency, South Sumatra, Monday (24/1/2022).

Moreover, the opportunity for the development of renewable energy in South Sumatra is still wide open. Out of the total potential of renewable energy of 21,032 MW in South Sumatra, the installed capacity of new renewable energy generators is only 989.12 MW or just 4.7 percent. Besides the installed capacities for hydro, solar, bioenergy, and geothermal power, wind energy with a potential of 310 MW is also expected to grow.

"Wind power plants are currently not present in South Sumatra, partly due to a lack of detailed technical studies. Therefore, it is expected that there will be studies conducted in the future related to this energy source," said Dewi."

Industrial decarbonization

Meanwhile, IESR Industrial Decarbonization Coordinator Faricha Hidayati said that industry is still one of the main contributors to greenhouse gas emissions in Indonesia, including in South Sumatra. This is partly due to the high use of fossil fuels as an energy source. For example, related to ammonia production and pulp and paper production.

Also read: South Sumatra Has Huge New Renewable Energy Potential

KOMPAS/ADITYA PUTRA PERDANA

A solar power plant (PLTS) is visible at the Annex Building of PT Pusri Palembang in South Sumatra on Monday (26/2/2024). The visit to the PLTS is part of the South Sumatra Energy Exploration held by the Institute for Essential Services Reform (IESR) from February 26 to March 2, 2024.

Therefore, the decarbonization of industry continues to be promoted in order to support the achievement of net zero emissions (NZE) by 2060. Several pillars in the decarbonization of both industries include material efficiency and demand reduction, energy use efficiency, carbon capture, storage, and utilization technology (CCS/CCUS), green ammonia, as well as fuel substitution and electrification.

"There are indeed some challenges in efforts towards decarbonization of the industry, such as long-term assets aged 30-40 years, the need for high-temperature heat energy, as well as the very limited availability of green investment types. However, (if applied), there are benefits for the business world and the country, including cost savings in production, opportunities in new target markets, as well as opening up green job opportunities," he said.