World Trends: From Shifting Energy Transition to Sustainable Energy Security

Reliable, affordable and accessible energy is said to be a catalyst for economic growth in all countries.

KOMPAS/SUTTA DHARMASAPUTRA

The President Director of PT Pertamina (Persero), Nicke Widyawati, provided a presentation on the new renewable energy policy at an iftar event with media editors in Jakarta on Monday evening, March 25th, 2024.

JAKARTA, KOMPAS — The global energy development trend is said to no longer be ambitious about renewable energy targets, but is towards the availability of reliable, accessible and affordable energy, without neglecting sustainability aspects. The energy transition in this way becomes a catalyst for economic growth for countries in the world.

President Director of PT Pertamina (Persero) Nicke Widyawati saw this change in trend in the global energy industry forum CERAWeek 2024, which was held by S&P Global, in Houston, United States, on March 18-23 2024. Nicke, who was one of the speakers at the event, said that countries in the world are now more realistic in their views energy transition.

"If previously they were fast towards renewable energy, now they see that what must be prioritized is energy security because all countries are now racing to "Increase economic growth after the Covid-19 pandemic," said Nicke in breaking the fast with media editors in chief, in Jakarta, Monday (25/3/2024) evening.

Also read: When can Indonesia rely on renewable energy?

He added that reliable, affordable, and accessible energy is a catalyst for economic growth in all countries, including developed countries. It will be difficult for a country that intends to boost economic growth, after experiencing a significant decline during the Covid-19 pandemic, if it uses unreliable and expensive energy.

"The key is that the energy transition must be implemented in a fair, sustainable and affordable manner," said Nicke.

From CERAWeek 2024, Nicke also sees a strong correlation between energy, food, and water in countries around the world. If there is no balance between the three, the threat of a food crisis could be inevitable. The concern about rising food commodity prices, including the need for imports, is not only felt by Indonesia but also by other countries around the world.

She exemplified the combination of energy and water used to find food. Food and water will generate energy. "It's a cycle and nothing can be missing. This is a new challenge for Pertamina. It's not just about energy, but also conserving water and using energy and water for food security. For a country with a large population like Indonesia, food security is key," she said.

Also read: Indonesia Must Take Opportunities in the Energy Transition

When speaking at a forum during CERAWeek in 2024 on Monday (18/3/2024), Nicke stated that Pertamina is implementing a dual growth strategy. First, Pertamina strives to maintain energy needs through their oil and gas business while also carrying out decarbonization efforts.

Secondly, Pertamina is developing low-carbon businesses. This includes carbon balancing; carbon capture, utilization, and storage (CCS/CCUS); as well as nature-based solutions (NBS).

KOMPAS/PRIYOMBODO

The solar panel array at the communal solar power station (PLTS) in the Malahing fishing village, Tanjung Laut Indah, South Bontang, Bontang City, East Kalimantan, on Saturday (10/6/2023). The communal PLTS, which began operating in 2013, stopped being used by residents as a source of electricity in 2017 due to damage to the battery bank.

Currently, 62 percent of Pertamina's investment spending allocation will be directed towards the upstream sector. The remainder will be used for refinery investments and renewable energy development, among others. However, the allocation for low-carbon businesses will continue to increase in the future.

"We will switch to sustainable energy without sacrificing energy security and availability," said Nicke.

One of Pertamina's renewable energy-related businesses is the installation of solar power plants (PLTS), including at Refinery Unit VI Balongan, Indramayu, West Java, with a capacity of 1.51 Megawatt peak (MWp) which was inaugurated on Monday (19/2/2024). Thus, PLTS is now installed in four Pertamina refineries (Dumai, Plaju, Balongan, and Cilacap) with a total capacity of 9.87 MWp.

Currently, 62 percent of Pertamina's investment spending allocation will be directed at the upstream sector.

Director of Operations of PT Kilang Pertamina Internasional (KPI), Didik Bahagia, said that it is part of decarbonization efforts. "By integrating decarbonization into operational units, KPI is ready to provide real and positive impacts on the environment, as well as contribute to achieving global sustainability goals," he said through a press release on Tuesday (20/2/2024).

Meanwhile, the Executive Director of the ReforMiner Institute, Komaidi Notonegoro, also predicts that the next government (2024-2029) will balance the targets and realization of renewable energy, as well as existing interests. The previously high targets are likely to be made more realistic.