Indonesia's state utility, Perusahaan Listrik Negara (PLN), has outlined plans to construct an additional 31.6 gigawatts (GW) of renewable power capacity between 2024 and 2033, according to CEO Darmawan Prasodjo's statement to parliament on Wednesday.
This new renewable capacity is set to constitute 75% of the additional generation planned for the specified period. The remaining capacity is expected to be derived from gas power plants, as outlined in a draft plan for power supply.
In the previous 2021-2030 plan, PLN had proposed the construction of 20.9 GW of renewable capacity and nearly 20 GW of gas and coal power capacity. As of September, 8.6 GW of the total additional capacity planned for 2021-2030 has been successfully built.
The updated plan aligns with Indonesia's commitment to expedite the adoption of cleaner energy sources, aiming to achieve net-zero emissions before 2060.
Additionally, PLN intends to develop transmission infrastructure to connect hydropower and other renewable energy sources to Java, where power demand is high, and Sulawesi, where future consumption is expected to surge.
However, the proposed power supply plan does not assume an accelerated shutdown of coal-fired power plants. Indonesia, a major coal producer and exporter, currently relies on coal to power approximately half of its electricity grid. Darmawan clarified to parliament that the strategy is a “coal phase-down” rather than a phase-out. Most existing coal power plants will remain operational until the end of their contracts, and PLN plans to implement carbon capture and storage technology once it becomes available.
Indonesia had previously sought financing from global lenders to expedite the closure of coal power plants and reduce emissions. However, concerns have been raised by banks regarding potential environmental group objections to such loans being perceived as financing for coal projects. In response to the Just Energy Transition Partnership (JETP) scheme, which involves rich nations and global lenders pledging $20 billion to clean up Indonesia's power sector, two power plants with a combined capacity of 1.7 GW are scheduled to be shut down by 2040.
