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Green power market in Indonesia by 2025 needs almost US$37 billion in investment

According to the Indonesian Ministry of Energy and Mineral Resources (EMR), the government's strong determination to reduce fossil-based energy has stimulated the massive increase of New Renewable Energy (NRE) power plants which share is targeted to reach 23 percent in 2025. The Ministry also projects the investment to increase NRE power plants will reach US$36.95 billion over the next five years.

According to Agung Pribadi, Head of Bureau of Communication, Public Information Services, and Cooperation of the Ministry, the huge amount of investment is intended as a strategy to expand the share of the energy market.

The investment amount can help increase the energy market share in 2025, said Agung in Jakarta on December 3, 2019.

The investment amount to consist of geothermal power plants of US$17.45 billion, hydroelectric or micro-hydro plants US$14.58 billion, solar and wind power US$1.69 billion, waste-to-energy plants US$1.6 billion, biomass power plants US$1.37 billion, and hybrid power plants US$0.26 billion.

The breakdown of the NRE power plant investment is adjusted to the Electricity Procurement Plan (Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) of 2019-2025.

This (RUPTL) refers to the economic growth assumption of 5.5 percent annually until 2020 and 6.5 percent in 2025, Agung explained.

According to Agung, the investment amount indirectly brings about the rise in the capacity of NRE power plant mix in Indonesia to 24,074 Mega Watt (MW) in 2025 from the previously 10,335 MW in 2019.

In total, the installed capacity of NRE power plants over the next five years is as follows: 11.256 GW in 2020, 12.887 GW in 2021, 14.064 GW in 2022, 15.184 GW in 2023, and 17.421 GW in 2024.

The breakdown of the NRE power plant investment is adjusted to the Electricity Procurement Plan (Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) of 2019-2025 (graphic courtesy Ministry of Energy and Mineral Resources).

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