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Publish Date : 16-Jan-2016

In a bid to realize set goals envisioned for the renewable power sector, the Indonesian Government has been planning to assume new steps for the procurement of energy generated from renewable sources.

The Government of Indonesia is reportedly planning to establish a new unit for the dedicated purpose of procurement of energy from renewable power project sites.

According to media reports, the Indonesian main power utility Perusahaan Listrik Negara (PLN) is not ready to procure power from renewable energy projects citing lofty costs involved in the process.

The move has forced the Government to make consideration on the establishment of a dedicated unit for renewable power purchases.

The new utility will serve the end users, comprising industry, via procurement of energy from renewable power projects.

The utility is expected to manage operations in the lines of the Solar Energy Corporation of India (SECI), which is responsible for carrying out competitive auction process meant for solar energy projects and subsequently purchases electricity from these projects to serve the end-users, at the same time taking a tiny amount as commission for these dealings.

As part of a mid-term goal, Indonesia has planned to boost the contribution of renewable energy into the total energy consumption to 25% within the year 2025.

Indonesia has also declared a target for increasing the share of renewable energy into the countrys total energy mix to 19% by 2019.

Currently, renewable energy accounts for about 5% to 6% in the overall energy consumption of Indonesia.

It is anticipated that the geothermal energy will have a vital role in the renewable power strategy of the country.

According to estimations, Indonesia is capable of producing 29GW of geothermal energy, representing almost 40% of the overall geothermal reserves of the globe. The country now has geothermal energy generation capacity of over 1GW, including operational plants or under development ones.

It is also anticipated that the Indonesian Government will accelerate moves to facilitate development of further geothermal energy assets in the country.

Besides, Indonesia has announced its commitment to reduce its greenhouse gas emission by 29% within the year 2030.

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