Indonesia’s state utility PLN moves toward green energy with $700m solar project

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Indonesia’s state utility, Perusahaan Listrik Negara (PLN) [RIC:RIC:PLNEG.UL], has announced plans for a significant solar power investment as part of its commitment to reducing carbon emissions, as reported by Reuters. The company is seeking a $700-million investment to fund the installation of a 200-megawatt (MW) solar panel system. The solar panel array will serve as a replacement for diesel power generators, in an effort to move toward cleaner energy sources.

This solar power installation plan was unveiled late on Saturday, as part of the company’s larger strategy to achieve net zero carbon emissions by 2060. Between 2021 and 2030, PLN plans to install solar panels with a total capacity of 4.68 gigawatt (GW), making this 200 MW installation just the first phase of a long-term plan.

The company’s director, Evy Haryadi, stated that this initial project is the start of an extended effort to replace 1 GW of diesel power plants with solar power. Haryadi, however, did not provide specific details regarding the timeline for this initial phase.

This green energy shift in Indonesia has gained global support, with a coalition of countries pledging $20 billion of public and private financing will assist the country’s transition to cleaner energy. The financial backing falls under the Just Energy Transition Partnership (JETP), a global initiative supporting sustainable energy development.

Indonesia aims to conclude a detailed plan for the allocation of the JETP funds by August, said Edo Mahendra, the head of Indonesia’s JETP Secretariat. He added that PLN’s ambitious plan to transition from diesel power to renewable energy will serve as a pilot programme under the JETP initiative.

This forthcoming project underscores the significant global efforts towards cleaner energy alternatives and the reduction of carbon emissions, with PLN leading the way in Indonesia’s energy sector.

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