Subholding Pertamina New Renewable Energy, PT Pertamina Power Indonesia (PPI) target to have a total capacity of Solar Power Generation (PLTS) until 500 MW of total potential 1,5 GW in the next five years. On 2021, the company will realize 50 MW PLTS, including through the installation of Rooftop Solar Power Plants at Public Fuel Filling Stations (gas station) on the island of Java.
Vice President Technical & Engineering Pertamina Power Indonesia, Norman Ginting says, to realize the target installed capacity 50 MW of PLTS in 2021, including at gas stations on the island of Java, need local manufacturing and EPC support.
“This PLTS is not only used for housing, but also to meet the electricity needs of the Badak LNG system, including in Dumai,” said Norman in the SUKSE2S Webinar at Jakarta, Thursday (26/8).
Norman says, the challenge of developing PV mini-grid business in Indonesia is segregated networks, intermittent electricity rates, grid constrain, and regulation. “I also saw something else, such as the licensing process because there is an oversupply issue so that BKPM closes the space for developers who will build PLTS. This is an obstacle. We hope that things like this will be facilitated by the government so that their development can be accelerated,” he said.
Meanwhile, PT Indika Energy Tbk since three years ago carried out a business transformation with an intermediate target, where coal and non-coal revenues can be balanced 50:50 on 2025. One form of Indika's transformation is to enter the New Renewable Energy business (EBT).
In the beginning 2021 Indika has also established a joint venture company with one of the PV mini-grid developers in India. “We call it EMITS. EMITS has developed more 550 MW in India, majority ownership is held by TPG,” said Deputy Managing Director & Group CEO PT Indika Energy Tbk Azis Armand.
According to Azis, Indika's net zero emission commitment target will be achieved through portfolio changes, and carry out decarbonization in subsidiaries that will contribute to net zero emissions. “We have discussed that the potential of PV mini-grid is very large because PV mini-grid will have a certain ecosystem. We want to be part of the solar PV ecosystem in Indonesia, either through EMITS subsidiaries and others,” he said.
Director of Development and Commerce of PJB, Iwan Purnama says, for the development of PV mini-grid needs policy support, as included in all the plans in the RUPTL. other than that, create a PV mini-grid market by increasing development capacity in PV mini-grid and setting clear PV mini-grid development targets.
“It is necessary to harmonize supply and demand in order to accelerate the addition of new plants,” Ivan said
According to Ivan, From the procurement side, it is also hoped that there will be standardization of rules and increasing transparency of the auction process, and bankable PPA standardization with fair risk allocation. In terms of project execution, there is ease and flexibility in licensing and land preparation, including reservoir permits managed by the Ministry of PUPR. Then relax the percentage of reservoir surface use to fund floating solar power plants.
“As well as mastery of technology and readiness of supporting industries for low interest,” he said.
The Utilization of EBT in Indonesia is Still Low
Director of Various New Energy and New Renewable Energy, Directorate General of EBTKE, Ministry of Energy and Mineral Resources, Chrisnawan Anditya says, NRE utilization in Indonesia is still low. Therefore, all renewable energy will be developed, but the speed is seen from the technology and the competiveness of the technology.
“Solar technology is big but utilization is small. We are currently finalizing the NRE technology upgrade, one of them is solar which has great potential,” he said.
One of the considerations for the Ministry of Energy and Mineral Resources to encourage PLTS is the price that continues to fall and the interest increases in the country. Therefore, regulations to support the development of PV mini-grid are prepared. Currently the regulation is just waiting for the completion of the RUPTL.
The Ministry of Energy and Mineral Resources encourages the PLTS Roof Regulation which provides more incentives for community participation, i.e. export provisions which are greater than 65 percent and the excess accumulated difference is eliminated extended.
“other than that, shorter PLTS Roof application period, the existence of a PLTS roof system complaint center to receive and follow up on complaints, expansion is not only PLN customers but from customers outside the non-PLN business area, until the service mechanism is required,” Chrisnawan said.
He admits, PLTS development is not without challenges, especially the capability of the domestic solar PV industry which is only at the solar module assembly stage. The development of the domestic PV solar industry is on a small economic scale, so it is not competitive.
“One of the important PLTS components, namely the inverter, cannot be produced domestically, energy storage technology is still expensive, and domestic production capabilities are also still limited to support large-scale PV mini-grid projects,” Chrisnawan said.
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