The excess supply of electricity, aka over supply, that occurred at PT PLN (Persero) is said to be the main obstacle to the development of EBT-based power plants.
PLN's Over Supply of Electricity Becomes an Barrier to EBT Development (PHOTO: MNC Media)
This was conveyed by the Southeast Asia Clean Energy Facility (SEACEF) at COP26 in Glasgow.
SEACEF Managing Mason Wallick sees that the current oversupply condition of fossil power plants is quite a burden for PLN in developing NRE plants. Moreover, the projected growth in electricity demand will not be able to catch up with the oversupply within a period of 10 years. "The reform and modernization of PLN's tariffs will pave the way for risk allocation for future breakthroughs for mixed financing and private sector funding," said Mason, Wednesday (11/3/2021). He also noted that PLN's long-term plan to develop NRE would change PLN's cost structure dramatically. Over time, with increased capacity, the transition to low-cost renewable energy will generate new jobs and improve the economy.
Meanwhile, Director of the Environment Directorate of the Organization for Economic Co-operation and Development (OECD) Rodolfo Lacy projects that the direction of energy and climate change will be determined by the development of developing countries. Outside of China, developing countries will account for one-fifth of energy investment in 2020, or about $150 billion.
"The good news is that there is no shortage of global capital. Technology is also there. Global Financial System is now looking to increase its portfolio with environmentally friendly projects," he said.
Deputy for Coordinating State-Owned Enterprises Business Development, Research, and Innovation at the Coordinating Ministry for Economic Affairs, Montty Girianna, also ensured that the government would seek to increase access for EBT projects to global financing. Recently, the Coordinating Ministry for Economic Affairs has just inaugurated the second phase of the Indonesian Sustainable Finance Roadmap which will be the key in creating an environmentally oriented financing ecosystem.
"We need USD 6.3 billion per year for the development of EBT until 2025. Of this value, until now only 24 percent has been realized," said Montty. ( RAMA )