The Indonesian government estimates that a total investment of up to $ 1,043 billion will be needed to develop new power plants powered by renewable energy to meet its goal of carbon neutrality by 2060. The Asian nation Southeast is currently heavily dependent on coal for power generation.

New Renewable Energy (NRE) director general at the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said the estimate was in line with government calculations. In his explanation at the Indonesia Business Challenges 2022 held last Thursday, Dadan said the bulk of the investment would go to the development of new renewable energy plants, Bisnis Indonesia reported. The investment of $ 1,043 billion is expected to produce power plants with a total capacity of 707.7 GW of electricity.

The World Bank last week urged Indonesia to abandon a policy requiring miners to supply a fixed amount of subsidized coal to its state-owned utility PLN, which it says has encouraged the use of the fuel. dirty in power generation, Reuters reported.

The recommendation is part of a report released last Thursday aimed at encouraging more private investment in renewable energy in Indonesia to help the country meet its goal of becoming carbon neutral by 2060 or earlier.

Indonesia is the world’s largest exporter of thermal coal and among the top ten emitters of greenhouse gases.

Renewable energy currently accounts for around 12% of Indonesia’s energy sources, while coal contributes around 60%, Reuters said.

The use of renewable energy in Indonesia has only reached 0.3% of the country’s total potential, the Ministry of Energy and Mineral Resources said last month.

Indonesia has a clean energy potential of 3,685 GW, including 3,295 GW of solar power, 95 GW of hydropower, 57 GW of bioenergy, 155 GW of wind power, 24 GW of geothermal power and 60 GW Marine Energy, secretary of the New and Renewable Energy and Energy Conservation Branch, said Sahid Junaidi in November, Indonesian news agency Antara reported.

Of the total potential, only 10,889 MW of clean energy was used, including 194 MW of solar energy, 6,432 MW of hydropower, 1,923 MW of bioenergy, 154 MW of wind energy and 2,186 MW of energy. geothermal energy, he said.

“In addition to renewable energies, a variety of new energy potentials are still little known, such as nuclear and hydrogen,” he added.

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