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Boosting Renewable Energy through the Right Measures

By Nanda F. Moenandar
02 October 2015

The ASEAN RE Newsletter had the opportunity to sit down with Ir. Jarman MSc., the Indonesian Director General of Electricity, to discuss the use of RE for electricity.  During this interview, he explained some government measures to optimize the use of new & renewable energy as regulated by Law no. 30/2009.

Q: With the Government Regulation no. 79/2014 targeting 23% (including nuclear) of new and renewable energy incorporated in the energy mix by 2025, is there a specific RE source that the Directorate General of Electricity would like to focus?

A: In accordance with the above-mentioned Government Regulation, the nation should focus on these energy sources to generate electricity:

  • Renewable energy in the forms of mini & macro hydro, geothermal (including small scale/modular), ocean thermal energy conversion (OTEC), wind and solar power, biomass, biogas, as well as waste-to-energy (WtE)
  • Natural gas and coals

Among them, Indonesia’s biggest potentials are mini & macro hydro, as well as geothermal. So these sources are expected to give a significant contribution to the energy mix target.

Q: What are the Directorate General’s approaches to meet the target?

A:  The draft for General Plan of Electricity 2015-2034 puts an emphasis on the importance of supporting regulations and attractive incentives to assist in the target achievement, among others:

  • The Minister of Energy & Mineral Resources’ Regulation no. 17/2014, which we implement in cooperation with the Directorate General of New Energy, Renewable and Energy Conservation. The Policy regulates the highest price benchmark for the purchase of geothermal power plant by the State Electricity Company, which is between USD11.8 and USD29.6 cents per kWh, by taking the plant’s coverage area and commercial operating date into account.
  • The Minister of Energy & Mineral Resources’ Regulation no. 3/2015 that aims to boost the constructions of hydropower plants. The Policy states that electricity from hydropower plants can be purchased through a direct appointment with the highest price benchmark of USD8 to USD9 cents per kWh, commensurate with the plants’ capacities.

Q:  Which approach that shows more promise in realizing this target from your institution’s point of view?

A:  We envision that by streamlining the processes for business and by guaranteeing investment returns (through highest price benchmark), we could boost the developments of renewable energy power plants.

Q:  Apart from sharing knowledge with other AMS, what kind of possible collaboration do you envision to increase the use of RE in ASEAN, especially with the Directorate General of Electricity?

A:  We would like to see more collaborations for capacity building activities with AMS, either directly with the states or in the context of ASEAN.

Originally appeared here

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