Indonesia needs US$36 billion for renewable energy investment

Jakarta (Indonesia Window) – Indonesia expects the Renewable Energy Mix to reach 23 percent by 2025.

The Ministry of Energy and Mineral Resources projected that up to the next five years the investment costs of increasing renewable energy plants in the country would reach US$36.95 billion, the Director General of Renewable Energy and Energy Conservation, Sutijastoto, noted.

Ministry of Energy and Mineral Resources spokesperson Agung Pribadi stated that the investment cost was intended as a strategy to expand the energy market share.

“The investment value can help increase energy market share in 2025,” Agung said here on Tuesday (Dec 4).

According to him, the value of the investment consists of geothermal power plants of US$17.45 billion, micro or microhydro power plants of US$14.58 billion, solar and wind power plants of US$1.69 billion, waste plants of US$1.6 billion, bioenergy power plants of US$1.37 billion, and hybird power plants of US$0.26 billion.

The total investment details of the renewable energy power plants are based on the 2019-2025 Electricity Supply Business Plan (RUPTL).

“The business plan refers to the assumption that the national economic growth will be 5.5 percent per year until 2020 and 6.5 percent by 2025,” Agung noted.

He added that the investment figures indirectly had an impact on increasing the capacity of the renewable energy mix in Indonesia to 24,074 Mega Watt (MW) by 2025 from that of 10,335 MW in 2019.

In the next five years the installed capacity of renewable energy plants are expected to be 11,256 MW in 2020, 12,887 MW in 2021, 14,064 MW in 2022 and 2023 to 15,184 MW and 17,421 MW in 2024.

Reporting by Indonesia Window