PT PLN Indonesia Power (PLN IP), a power generating subsidiary of state-owned electricity firm PT PLN, is fast-tracking the development of solar power plants (PLTS) with a capacity of 500 MW from the Hijaunesia 2023 project.
This was announced by PLN Indonesia Power's CEO, Edwin Nugraha Putra, as reported by Antara on Friday (April 5, 2024). In the Hijaunesia 2023 project, PLN Indonesia Power prioritizes the construction of solar power plants (PLTS) and wind power plants (PLTB) with a total capacity of 1,055 MW through a strategic partnership scheme.
"Through this initiative, we are accelerating the development of renewable energy sources as outlined in the 2021-2030 Electricity Supply Business Plan (RUPTL)," said Edwin. For the initial phase, PLN Indonesia Power is expediting the construction of a 500 MW solar power plant at five locations.
Edwin stated that the target is to complete construction and achieve commercial operation dates (COD) faster than ever before. "The construction of these power plants involves parallel processes, including pre-selecting partners including EPC contractors (engineering procurement construction), selecting lenders, and the licensing process," he explained.
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The construction of solar power plants has attracted interest from potential partners and EPC contractors from various countries. Currently, there are a total of 33 participants who have passed the request for quotation (RFQ) stage and have entered the evaluation phase of the first envelope. "Potential partners interested in the development of the 500 MW solar power plant project come from domestic and European sources, indicating the appeal of our renewable energy projects," he said.
According to Edwin, PLN Indonesia Power also emphasizes meeting domestic content requirements (TKDN) as per applicable regulations. Thus, projects carried out by PLN can create a chain reaction impact on the domestic industry.
"Hijaunesia 2023 acts as a demand creator to open up the solar panel manufacturing investment market in line with the 60% domestic content requirement issue," Edwin explained. He further revealed that the Hijaunesia 2023 project is also PLN Indonesia Power's commitment and implementation in terms of environmental, social, and governance (ESG) aspects.
By 2028, PLN Indonesia Power targets the development of renewable energy power plants to reach 2.78 GW, contributing to a reduction in carbon dioxide emissions by 2 million tons.
Editing by Reiner Simanjuntak
