PLN Launches Green Energy Initiative for Indonesian Industrial Sector

PLN has unveiled its Green Energy as a Service (GEAS) initiative, aimed at supplying green electricity from renewable energy sources to Indonesia’s industrial sector. The announcement was made during the “Green Energy Buyers Dialogue” event in Jakarta, which gathered key stakeholders from the Just Energy Transition Partnership (JETP). The event saw participation from representatives of the Indonesian Government, the International Partners Group (IPG), the Glasgow Financial Alliance for Net Zero (GFANZ), international and domestic banks, and various business entities. PLN President Director Darmawan Prasodjo underscored the company's commitment to supporting global zero-emissions goals and aligning with Indonesia’s target of achieving Net Zero Emissions (NZE) by 2060. “In line with the industrial sector’s high commitment to decarbonization in Indonesia, PLN offers green electricity through the Renewable Energy Certificate (REC) as an internationally recognized GEAS product. Each REC certificate verifies that the electricity used per megawatt hour (MWh) comes from renewable energy or non-fossil power plants,” Darmawan stated. To ensure a reliable supply of green electricity, PLN is expanding its renewable energy capacity nationwide. By the end of 2023, PLN's renewable energy generation capacity reached 8,786 megawatts (MW), with contributions from hydro-based generators (5,777 MW), geothermal-based generators (2,519 MW), and the rest from solar, wind, and biomass sources. PLN is also working with the Government to enhance the renewable energy mix in the National Electricity General Plan (RUKN) and the latest Electricity Addition Business Plan (RUPTL). “From today until 2040, we aim to add 21 Gigawatts (GW) from gas-fired power plants, 28 GW from solar and wind power, 31 GW from hydro and geothermal power, and 2.4 GW from new energy sources,” Darmawan added. Anya Sapphira, Stakeholder Engagement and Sustainability Manager at PT Hindo (H&M Group Indonesia), commended PLN’s green electricity service. “We need regulatory and infrastructural support related to renewable energy as H&M is committed to addressing climate change. Emissions in the supply chain are critical for us, involving over 90,000 workers across 58 independent factories in Indonesia,” Sapphira explained. Paul Butarbutar, Head of the JETP Secretariat, affirmed JETP's support for the development of Indonesia’s renewable energy sector. “We have identified priority projects with IPG and PLN and welcome industry, associations, or developers seeking funding for their projects,” Butarbutar said. Andrew Jeffries, Director of the Southeast Asia Energy Division at the Asian Development Bank (ADB), praised PLN’s efforts to boost renewable energy use. “We have a long history of collaboration with PLN in the energy sector. We are committed to supporting Indonesia in achieving economic growth, eradicating poverty, and improving overall welfare,” Jeffries concluded.