Through the National Energy Council (DEN), the government has
changed the new renewable energy mix (NRE) target in 2025 to 17-19 percent,
which is lower than the previous target of 23 percent. This change was
announced through the renewal of the National Energy Policy (KEN).
DEN has revised Government Regulation (PP) No. 79 of 2014 on
the national energy policy, in order to adapt to changes in the strategic
environment and fulfill obligations related to climate change. This step also
aims to support the energy transition towards carbon neutrality by 2060.
DEN officer for energy policy and conference organization,
explained that the previous target in 2023 was 23 percent, but with the KEN
update, the target is now 17-19 percent. The goal of this change is that target
achievements can still be met, even if only the lowest numbered scenario is
achieved.
"The target is 23 percent in 2023. "In the renewal
of the KEN, if PP signed by the president, it will change to 17-19 percent,As
DEN Energy Policy and Conference Facilitation Office Head said at a press
conference on the achievements of the ESDM 2023 sector and the Work Program for
2024 at the Office of the Ministry of Energy and Mineral Resources in Jakarta
DEN stated that the goal change in the range of numbers was
intended so that if the goal was achieved, it would still be achieved even
though it was only achieved in the lowest number scenario.
It is good if the lower target is achieved, then the Government
still work to attain the higher target.
In the energy transition plan in the revised PP KEN, the
primary goal of the energy mix for EBT is expected to reach 19-21 percent in 2025,
25-26 percent in 2030, 38-41 percent in 2040 and reach 70-72 percent of the
year 2060.
DEN also noted that significant changes have taken place in
the 2060 NRE mix target, where the previous target of the old PP KEN was 70
percent of energy coming from fossils. However, with this change, the target is
70-72 percent of energy coming from NRE, while 30 percent is from fossil fuels.
It is targetted in later 2060 will be 70-72 percent NRE,
while in the old PP KEN, 70 percent would be fossils by 2050. Now it's the
other way around, 70 percent EBT, 30 percent fossil fuels.
Currently, the process of renewal of PP KEN is in the phase
of harmonization by the Ministry of Law and Human Rights. This revision is also
based on macroeconomic considerations, given that PP KEN was previously based
on economic growth of 7-8 percent which was considered irrelevant to current
economic conditions.
According to the Ministry of Energy and Mineral Resources
(ESDM), the EBT mix by the end of 2023 reached only 13.1%.
The Minister of Energy and Mineral Resources aims for the KEN RPP to be completed by June
2024.
We see that the mix
NRE target mainly based on economic growth prediction, as said by DEN officer.
We do not see that the government much consider on the availability
of fossil energy and renewal energy in Indonesia. If the price of renewable energy
still high then the government should make much effort to make renewable energy
investment more feasible for the investor.
The latest condition happen in NRE investment where The
Ministry of Energy and Mineral Resources (ESDM) terminate the electricity export-import scheme
originating from rooftop solar power plants (PLTS) between customers and National
Electricity company (PT PLN (Persero)).
This is in accordance with the issuance of Ministerial
Regulation (Permen) concerning Energy and Mineral Resources Number 2 of 2024
which refers to PLTS Rooftops connected to the electric power network holders
of business permits for providing electricity for the public interest (IUPTLU).
The Renewable Energy and Energy Conservation office (EBTKE) of the Ministry of Energy and
Mineral Resources stated that the reason for the cancellation of the
electricity export-import scheme from rooftop PLTS from consumers to PT PLN
(Persero) was due to the minimal amount of electricity exports carried out by
the community.
In the new regulation, even if someone carries out import and
export activities of electricity produced from PLTS Rooftops from the community
to PLN, the tariff will not be reduced or what is called 'lower costs' as
applied in the regulation. Previous regulations, namely Minister of Energy and
Mineral Resources Regulation No. 26/2021, with this revision, the rules for
exporting and importing electricity are abolished.
Thus, excess electricity from the Rooftop PLTS system that
enters the current network is no longer taken into account in the electricity
bills of customers who install Rooftop PLTS.
We can see that the government policy is not favour for
investment in renewable energy. Beside
the community there will be industrial and commercial building that can install high
capacity of PLTS which contribute significant amount in energy export to PLN.
In turn their activity will support the government program in National Energy
mix from renewable energy (NRE)
