US$160 Billion is Needed to Install 420 Gigawatt PLTS

Energy Web Id — The Indonesian government plans to install 420 gigawatts of solar photovoltaic or solar panels in 2060 as part of the development of renewable energy. The mega project requires an investment of around US$160 billion.

This was conveyed by the Minister of Energy and Mineral Resources (ESDM - Energi dan Sumber Daya Mineral) Arifin Tasrif in a panel session at the Indonesian Pavilion, Thursday (20/1/2023). The event is part of the 2023 World Economic Forum (WEF) agenda in Davos, Switzerland on 16-20 January 2023.

Arifin said that the use of Solar PhotoVoltaic (PV) or solar panels can increase efficiency to produce greater power output. Therefore, the government plans to develop a large Solar Power Plant (PLTS - Pembangkit Listrik Tenaga Surya).

"We plan to build 420 gigawatts [GW] of Solar PV which will be installed in 2060 with an investment requirement of no less than US$160 billion," said Arifin on Thursday (20/1/2023) Davos time.

According to him, the development of new and renewable energy (EBT - Energi Baru dan Terbarukan) requires various advanced technologies, such as storage technology systems. Therefore, the existence of investment becomes very important. 

He said that the government would also refer to Indonesia's Net Zero Emissions (NZE) Roadmap, which includes the creation of a 56 GW Battery Energy Storage System. To achieve this, according to Arifin, constant encouragement of innovation and improvement is needed.

"A very large investment fund is needed, more than US$ 1 trillion until 2060. The need for funds is even greater when coal-fired power plants are stopped more quickly and replaced with EBT electricity," said Arifin.