Jakarta (ANTARA) - State electricity company PT PLN (Persero) will need US$155 billion (Rp2 thousand trillion) in investment to implement the green energy-based national electricity development program in 2023– 2040.
"This is a fairly realistic investment value," PLN's director of risk management, Suroso Isnandar, said at a press briefing on the 78th National Electricity Day Enlit Asia 2023 here on Wednesday.
The investment will be used to build new power plants, increase transmission and distribution capacity, and develop smart grids, as envisaged in the Electricity Supply Business Plan (RUPTL) for the 2023–2040 period, he informed.
The construction of new power plants with a power capacity of 30.9 megawatts (MW) would need an investment of Rp1,200 trillion, he elaborated.
Meanwhile, Rp500 trillion of the investment would be used to increase transmission and distribution capacity and Rp300 trillion for the development of smart grid solar panels.
He said that the investment would also be used to increase the reliability of electricity supply across the country and make its distribution uniform.
Isnandar added that PLN has several projects, including the development of renewable energy (EBT)-based power plants with a total capacity of 35 thousand MW.
The EBT-based plants comprise solar power plants with a capacity of 10 thousand MW, hydroelectric power plants with a capacity of 10 thousand MW, and wind power plants with a capacity of 15 thousand MW.
The company has also implemented projects to increase transmission capacity by 200 thousand MVA, increase distribution capacity by 100 thousand MVA, and develop smart grids in 5 regions in Indonesia.
According to Isnandar, PLN will rely on various funding sources to finance this investment, including the state budget, loans from international financial institutions, and private sector investment.
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"Most recently, PLN has signed an MoU (memorandum of understanding) with China to develop a smart grid worth US$54 billion," he said.
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Such collaboration is expected to accelerate the country's energy transition with 75 percent of additional capacity targeted to come from renewable energy and 25 percent from natural gas by 2040.