When can Indonesia rely on renewable energy?

There are still many young people who are not yet aware of renewable energy. Even if there is, they generally only know about solar energy.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Kapan Indonesia Bisa Mengandalkan Energi Terbarukan?

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Activity in the main area of the Lumut Balai Geothermal Power Plant (PLTP) owned by PT Pertamina Geothermal Energy Tbk in Muara Enim Regency, South Sumatra, was underway on Thursday (29/2/2024). Unit 1 of the Lumut Balai PLTP, with a capacity of 55 megawatts (MW), began commercial operations in 2019. Meanwhile, unit 2, which also has a capacity of 55 MW, is targeted to begin operations this year.

The transition from fossil energy to low-emission energy is non-negotiable. It's not about following global trends, but about the earth and its life in the future. However, the question arises when Indonesia can really rely on renewable energy? Because, even though we are blessed with abundant renewable energy potential, access is not easy and the price is not cheap.

On Thursday (29/2/2024), on the way to the Lumut Balai Geothermal Power Plant (PLTP) in Muara Enim, South Sumatra, four minivans carrying participants Energy Exploration Sumatra South was forced to travel at low speed. Apart from being rocky, the road is also filled with ups and downs with views of the forest on either side.

The Lumut Balai geothermal power plant is managed by PT Pertamina Geothermal Energy Tbk (PGE) with a capacity of 55 MW. Located approximately 99 kilometers from the city center of Muara Enim, the power plant is situated in a remote area. It takes about 3 hours to reach the location due to the uneven road conditions.

The presence of giant pipes on the side of the road signifies that the geothermal power plant is nearby. The participants felt relieved upon arriving at the entrance gate of the power plant.

The situation has opened the eyes of Nova Ariana (36), a participant of the Energy Expedition, who is also a Radio Republik Indonesia (RRI) journalist serving in Palembang on how great the challenge is to access clean energy. "Apparently, it's not easy. It requires a cost. Starting from access to roads, not to mention the technology. Until now, I have mostly seen fossil fuels. Apparently, renewable energy is indeed not cheap," she said.

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A number of participants of the Sumatra Energy Expedition, organized by the Institute for Essential Services Reform, visited the Lumut Balai Geothermal Power Plant owned by PT Pertamina Geothermal Energy Tbk in Muara Enim District, South Sumatra, on Thursday (29/2/2024).

For a long time, Nova has known that South Sumatra is known as a food and energy producing region, especially for coal energy as well as renewable energy potential. However, she realizes that it takes time to transition from fossil fuels to renewable energy. In this effort, what is most important for her is how to ensure that the abundance of resources in South Sumatra benefits the region and its people.

Another participant, Dyah Sinto Rini, a school supervisor from the Tangerang Education Office in Banten, who is also an activist for the Clean Energy Movement, gained valuable experience from exploring energy. Sumsel is only a part of the vast area of Indonesia blessed with renewable energy sources. However, challenges in their utilization must be resolved.

One important thing, according to her, is to prepare human resources (HR) related to renewable energy as early as possible. "PGE has programs such as education and scholarships, among others. However, for (other renewable energy projects visited), I have not yet found a connection with schools. Yet, education to students is important," said Dyah.

Meanwhile, Muhammad Azimi Kurniawan (20) from the Society of Renewable Energy (SRE) at Sriwijaya University also recognizes the importance of the role of young people in the development of renewable energy. From his observations, there are still many young people who are not aware of renewable energy. Even if there are, they generally only know about solar energy.

Education for students is important.

"In fact, there are many other potentials, such as geothermal, water and biomass. This is important for young people to know because we, Gen Z, are agents of change. We, and also our children and grandchildren, will feel the impact (of climate change) in the future. "From this Energy Exploration, we, SRE Unsri, will discuss through a workshop and share experiences on this matter," said Azimi.

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Participants in the South Sumatra Energy Exploration organized by the Institute for Essential Services Reform talk in front of the power house at the Green Lahat Minihydro Power Plant (PLTM) in Singapure Village, Kota Agung District, Lahat Regency, South Sumatra, Wednesday ( 1/28/2024). The PLTM has a capacity of 3 x 3.3 megawatts.

The South Sumatra Energy Exploration was held by the Institute for Essential Services Reform (IESR) on 26 February-1 March 2024. The activity was attended by a number of journalists, government agency employees and members of the community.

Participants visited several renewable energy generators in South Sumatra, including the Jakabaring Solar Power Plant in Palembang, the Buyung Poetra Sembada Biomass Power Plant in Ogan Ilir Regency, the Green Lahat Mini Hydro Power Plant, and the Lumut Balai Geothermal Power Plant in Muara Enim Regency. In addition, there were irrigation solar power plants in Tanjung Raja Village, Muara Enim, and Tanjungenim Lestari Pulp & Paper's biomass boiler.

The visit opened the participants' eyes that developing renewable energy is not easy and requires a large investment. Nevertheless, efforts must still be made towards that direction.

This is an extraordinary challenge, but also a great opportunity.

The Ministry of Energy and Mineral Resources (ESDM) notes that the potential for renewable energy in Indonesia is 3,600 gigawatts (GW), with 3,300 of those coming from solar power. However, as of the end of 2023, the total newly installed capacity is only 13,155 megawatts (MW), or 0.4 percent of the potential. In the last five years, the average increase in installed capacity has only been 6 percent per year.

Solar and wind energy (wind) has the potential to continue to be massive, but is intermittent and depends on the weather. Energy storage technology to overcome intermittency problems is also still relatively expensive. Biomass is hampered by supply sustainability and deforestation issues. Meanwhile, geothermal energy, which has the potential to bear the base load, has financing challenges and high drilling risks.

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Participants in the Energy Exploration of South Sumatra event, held by the Institute for Essential Services Reform, visited a solar power plant (PLTS) in Karang Raja village, Muara Enim District, Muara Enim Regency, South Sumatra on Friday (1/3/2024). The PLTS has a capacity of 38 kilowatt-peak (kWp).

In the end, the development of renewable energy leads to whether or not economic levels will be achieved. One of the biggest challenges is the difficulty of renewable energy competing with fossil fuels that are already available at a cheap price. For example, coal has been priced/subsidized for the benefit of the PLN steam power plant (PLTU) at $70 US dollars per ton. Therefore, the price of coal will not be affected by the dynamics of the global coal price.

The affordability of fossil fuels, such as coal and certain types of oil, is actually related to national energy resilience. Coal prices are set low to maintain the reliability of the national electricity supply, given that 67 percent of national electricity is still supported by coal for power plants. The same goes for subsidized fuel oil and liquefied petroleum gas (LPG) so that the public can afford it.

Also read: Indonesia Must Take Opportunities in the Energy Transition

Subnational Coordinator of Sustainable Energy Access Program at IESR, Rizqi Prasetyo, stated that the development of renewable energy requires cross-sector collaboration. Hence, various challenges can be overcome together, including achieving economic viability. For example, in geothermal energy, preliminary studies and research can be matured to minimize the risk of failure in exploration.

South Sumatra, with an installed renewable energy capacity of 989.12 MW or 4.7 percent of the potential, is an example of a region whose economy depends on fossil fuels and is now making efforts in the energy transition. In the midst of various existing challenges, other regions continue to race to increase renewable energy capacity, which will also support the achievement of net zero emissions (net zero emissions) by 2060.

Infrastructure

One of the things that must be driven to accelerate renewable energy in Indonesia is the development of electricity transmission infrastructure. This is because, according to data from PT Perusahaan Listrik Negara (Persero), the sources of renewable energy that will be needed in the future are located outside of Java Island. Meanwhile, the demand center will be located in Java.

PLN's notes state that by 2040, there will be a total addition of 80 GW power generation. Of this amount, 75 percent will be based on renewable energy and 25 percent will be based on gas. There will no longer be any construction of coal-fired power plants.

Also read: Java-Sumatra Transmission Development Needs Careful Study

PLN Main Director Darmawan Prasodjo said that funding of around 152 billion US dollars or the equivalent of Rp. 2,389 trillion (exchange rate of Rp. 15,723 per US dollar) is needed. "Of course, PLN must change. So, the private portion is 60 percent and PLN is 40 percent. Even then, PLN's portion can still be collaborated with the private sector. "This is an extraordinary challenge, but also a huge opportunity," he said.

Previously, the Acting Director General of Electricity at the Ministry of Energy and Mineral Resources, Jisman P Hutajulu, stated that electricity is a basic necessity, hence interconnection or the construction of electrical networks must be carried out. Not only for the needs of Java, but also for the whole of Indonesia. The future electricity needs are expected to be fulfilled by renewable energy sources.

Looking at a number of existing challenges, Indonesia will still need time for renewable energy to play a greater role in national energy supply with reliable and affordable prices. All of that can only be realized through careful planning, integrated policies, and most importantly, consistency.