Unleashing Renewable Energy Potential in Central Java
Central Java, a province in Indonesia known for its rich cultural heritage and growing economy, faces a significant challenge as it navigates the increasing demand for electricity. Recent assessments by the Institute for Essential Services Reform (IESR) highlight that despite a growing appetite for renewable energy (RE), the province’s actual utilisation remains disappointingly low.
Current Electricity Dynamics
As of 2024, renewable energy is projected to account for only 18.55% of Central Java’s total energy supply, falling short of the provincial target of 21.32% by 2025. This shortfall is evident during discussions with the Central Java Provincial Government, showcasing a heavy reliance on fossil fuel power plants. A staggering 96.6% of the operating power plant capacity comes from fossil fuels, primarily coal and gas, raising concerns about long-term sustainability and climate impacts.
Growth in Electricity Demand
The demand for electricity in Central Java has surged, growing by more than 5% annually over the past four years. This accelerated growth signals an urgent need for the province to pivot towards renewable energy solutions. Sodi Zakiy M, an IESR Geographic Information System Analyst, points out that the electricity system boasts a reserve capacity of 6.3 GW, exceeding the peak load of 5.6 GW. Despite this capacity, the substantial reliance on fossil fuels limits opportunities for a proactive energy transition.
Underutilisation of Renewable Resources
Central Java possesses immense renewable energy potential. Data from IESR reveals an impressive technical capacity of 194.28 GWp for solar energy, 29.5 GW for wind energy, and a variety of other sources including biomass and geothermal energy. Yet, the reality is stark; the province has installed only 55 MW of solar power, and there is minimal utilisation of biomass and wind energy resources.
Future Scenarios for Renewables
Looking ahead, the 2025–2034 Renewable Energy Development Plan (RUPTL) by PLN outlines ambitious scenarios for expanding renewable energy sources. The RE Base scenario aims for an addition of 1,237 MW of solar energy, 171 MW of hydro power, and 162 MW of geothermal energy. In contrast, the more aggressive ARED scenario sets its sights on an additional 7,321 MW of solar capacity, 342 MW of hydro, and a substantial 1,724 MW of geothermal power.
Feasibility Studies and Development Sites
A recent financial study by IESR has pinpointed 16 promising locations for renewable energy projects, including 12 ground-mounted solar power plants with a potential capacity of 13.4 GWp. Additional plans include two wind farms (160 MW) in Pemalang and Wonogiri, and two hydroelectric facilities (4.8 MW) in Cilacap. These studies showcase a clear pathway to harnessing the province’s renewable energy resources.
Structural Changes for Advancement
For Central Java to fully realise its renewable energy potential, significant structural changes are necessary. IESR recommends modifications in licensing and spatial planning to facilitate smoother project development. Key actions include allocating land specifically for renewable energy in regional plans, expediting land acquisition processes, and making interconnections to the PLN grid more straightforward, especially for large-scale solar initiatives.
Innovative Financing Approaches
Given the limitations of regional budgets, IESR stresses the importance of innovative financing mechanisms. Strategies such as blended finance options and private sector collaborations can help bridge funding gaps and initiate renewable energy projects effectively. This financial innovation is crucial, especially as the province faces mounting pressure to decarbonise its energy system and manufacturing processes.
Conclusion
With its vast potential for renewable energy utilization, Central Java stands at a pivotal crossroads. As electricity demand continues to rise and global standards for low-carbon energy become more stringent, proactive measures for the province’s energy transition are not only prudent but essential.