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Investment Towards Green Energy Is Very Profitable


Along with global developments, new energy and renewable energy (EBT) are becoming more and more strategies for the world economy, reducing climate impacts and maintaining energy security. The government continues to strive to accelerate the development of EBT in order to achieve the target mix and Net Zero Emissions/NZE while at the same time encouraging investment in EBT development.

"Referring to Green RPTUL, the development of EBT will generate a total investment of around USD 55.18 billion, open 281,566 new jobs and reduce GHG emissions by 89 million tons of CO2e," said the Director General of New Energy, Renewable Energy and Energy Conservation, Dadan Kusdiana at the Seminar. Road to G20 organized by the Association of Indonesian PTN Alumni Organizations, today (Tuesday, 25/10).

Dadan further explained the investment opportunities for EBT development in accordance with the PLN RUPTL for 2021 to.d. 2030, successively including Geothermal Power Plants (PLT) requiring an investment of USD 17.35 billion, Large-Scale Solar PLT 3.2 Billion USD, Water PLT 25.63 Billion USD and EBT Base PLT 5.49 Billion USD . Meanwhile, PLT Bioenergy requires an investment of USD 2.2 billion, PLT Bayu USD 1.03 billion, PLT Peaker USD 0.28 billion and Solar Roof PLT USD 3 billion.

"The current EBT development plan is determined to support green economic development because of its contribution in reducing the impact of climate change and ensuring energy security," Dadan added.

To attract more investment in the development of renewable energy, the government has launched Presidential Regulation Number 112 of 2022 concerning the Acceleration of EBT Development for the Provision of Electric Power. Not only regulates the use of renewable energy in terms of price and procurement mechanism, but also the energy transition in the electricity sector which includes stopping the acceleration of the PLTU map road and completing the construction of a new power plant.

"Currently we are in the process of formulating and discussing the New and Renewable Energy Draft Law, which when passed will provide legal certainty, strengthen institutions and governance, and create a comprehensive regulatory framework that can maintain a conducive, fair, and sustainable investment ecosystem for EBT. sustainable, so that EBT can benefit the whole community," he said.

On this occasion, Dadan also revealed that the Government is targeting consumption of biofuels (BBN) to reach 11.6 million kiloliters by 2025. Indonesia is the only country that uses B30 nationally in all sectors.
"Compared to Brazil, they are indeed very advanced but that's in bioethanol, Indonesia is the only country that has advanced biodiesel, and will soon follow bioethanol. The government is committed to using sustainable palm oil, so this is truly domestic production," said Dadan.

Until now there are 35 units of steam power plants (PLTU) that already use biomass-based fuels. Under these conditions, from time to time, more and more biomass is needed, with a calculation of around 10 million tons of biomass per year. According to Dadan, that number actually already exists now, for example, from the wastes of the agricultural industry, there is more than enough. However, despite keeping a lot of facts in mind, the Government is still facing the issue of the purchase price of biomass.

"This is not apple to apple between the price of coal that has been stamped with biomass whose price must follow the price of coal. We are looking for a way for this because this is no longer a potential but has become a reserve that is in front of our eyes," concluded Dadan. (RWS)
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