Indonesia needs $25 bln to build renewable energy grid

Indonesia's state-owned electricity company PLN said that it needs $25 billion to build a transmission grid connecting renewable energy sources across the country, also known as a green super grid.

The project will create a 50,000 km transmission network connecting many areas across the country.

PLN director Darmawan Prasodjo said the grid will play an important role in enabling the country’s transition to renewable energy sources as well as achieving its net zero emission commitment by 2060.

According to Prasodjo, the super grid will also open up many opportunities for Indonesia, especially the ability to export electricity to neighbouring countries in the Association of Southeast Asian Nations (ASEAN).

PLN forecasts that once completed, the power grid will connect consumers and industries with about 19.6 GW of hydroelectric energy, 16.5 GW of solar energy, 11.3 GW of wind power, and 7.1 GW of geothermal energy.

The company also seeks to mobilise other energy sources such as bioenergy and new energy.

Director general of the Renewable Energy under the Ministry of Energy and Mineral Resources Dadan Kusdiana said that to fully tap renewable energy potential, Indonesia needs an adequate infrastructure system for distribution throughout the country. Building a super grid is becoming more important to exchange resources, connect suppliers and meet demand across major islands.

Data from the ministry showed that renewable energy sources accounted for only 13% of the country's total energy last year, with the rest provided by coal, oil and gas.