2 minute read
POWER MIX
POWER MIX
The total installed power capacity of the country has crossed over 70 GW, of that thermal account for around 60 GW, where thermal Power generation will be dominated by coal-based electricity generation. The PLN energy mix for coal accounts for over 60% in 1H 2021. The thermal capacity is expected to cross 90 GW by 2030 maintaining its dominance in the country. The contribution of renewable energy (except hydro) among the total mix contributes very less share, of this Solar energy having negligence share among the total Power mix as well as in the renewable energy mix which is less than 1.5% by 2020. Among the renewable power mix, hydropower and geothermal energy take a giant share of around 58.48% and 20.36% respectively.
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There are lots of challenges in the Indonesian market for the growth of Solar PV such as lack of financing, land constraints, awareness, policies. As the cost of Solar Power generations has come down drastically from the past few years, now generating Solar Power is much more efficient than thermal Power generations. Also, the new 2021-2030 plans will help the renewable market to grow in the country and increase the share of the energy mix. As a part of the target, Solar energy needs to contribute above 6.5 GW of installed capacity by 2025.
In 2000, renewable Power capacity in Indonesia was 1.3 GW which increases to 4.3 GW in 2020. Renewable Power capacity is expected to grow at a CAGR of 12.5% to reach 14.9 GW by 2030. By 2030, the country is expected to produce 62.2 TWh of its electricity from renewable sources which will only be around 13% of total power generation in the country.
EQ iSearch
EQ iSearch
The country is estimating to generate around 56.4 GW of new plant capacity by 2028, but the share of thermal power capacity will be high even in the new national electricity plan of 2021-2030, again the execution of this planned capacity depends on the favorable policy, and funding from the government side.
Many new investors are planning to invest in the Solar Power plant of the energy mix, even government wants to increase the share of renewable particularly Solar energy in the Power mix. As per the Paris Agreement which had been signed by Indonesia in 2016, they are bound to reduce carbon emission and increase the share of renewable energy in the power mix.
