PLN plans to build 32 GW renewable energy capacity in Indonesia

Perusahaan Listrik Negara (PLN), a state-owned utility, plans to build 32 GW of renewable energy capacity in Indonesia.

The power distribution company also plans to upgrade its grid to accommodate more renewable energy-generating sources, increasing its variable power load from renewables from 5 GW to 28 GW. Funds from the Just Energy Transition will be used to finance PLN’s planned grid installation. Additionally, PLN is also revising its power supply master plan to incorporate more renewables. Under the new plan, around 75 per cent of additional generation capacity will be renewable energy-based while the remaining 25 per cent will be gas-based. The existing plan for 2021-2030 calls for renewable energy-based capacity to be 51 per cent of all new additional power generation. Meanwhile, the Government of Indonesia has revised local content rules for solar panels to encourage more investment and has pushed back the deadline by which  60 per cent of the components should be produced locally till 2025.