Optimising the Renewable Energy Potential Towards A Sustainable Energy Future
By the year 2025, the population of Indonesia is expected to reach 285 million, an increase of 35 million compared to 2015. It is clear that this will have an impact on the national energy demands.
Since the middle of the last decade, Indonesia switched from being a petroleum exporting nation to becoming a petroleum importer. This transition had awoken the nation to realize that alternative sources of energy should be developed. The new and renewable energy (NRE) in Indonesia has an overall potential to generate 200,000MW with only 6.8% been realized.
In 2014, the Government Regulation 79/2014 National Energy Policy sets a target to increase the provision of primary energy in Indonesia in 2025 to 400 MTOE with 23 percent from new and renewable energy (NRE) or an equivalent of 92 MTOE, with a growth of 17 percent for the next 10 years. To achieve this, investment of 1,600 trillion rupiah will be required. This investment value by 2025 is divided into 475 trillion for geothermal, 645 trillion bioenergy, 320 trillion for hydro and 160 for new energy.
Based on the ambitious targets set through Government Regulation 74/2014 and the challenges faced by the new and renewable energy sector, the business patterns need to be changed. An innovative change is needed in terms of integrated models of funding, planning, technology development and monitoring.
The hosting of the 2nd Renewable Energy for Indonesia 2016 (RE4I 2016) is set to provide a platform for potential investors to understand the key development issues of investing in the Indonesia’s renewable energy sector; get updated on the market directions, opportunities and economic priorities of the Government of Indonesia at the same to build potential business networks with the local authorities and industry players.