General Electric has signed a memorandum of understanding with Indonesia’s technology assessment and application agency (BPPT) for joint development of renewable energy utilization, cleaner coal and energy efficiency projects.
The two sides will work together to study key issues that can support commercial implementation of renewable energy projects such as biogas, biomass, geothermal, solar and wind in Indonesia.
“It (the agreement) supports the government’s goal to increase renewable energy’s share of the country’s energy mix to 17% by 2025, compared to today’s 3.4%,” says BBPT chairman Marzan A. Iskandar.
Indonesia’s energy demand is increasing about 7% a year in response to robust economic growth. The government is offering tax incentives for the development of renewable energy projects to help reduce the country’s dependency on fossil fuels.
Iskander says the new partnership with GE will first work on wind energy initiatives developed through initiatives developed through Indonesia’s wind hybrid power generation project. The programme has UN funding support.
It aims to promote commercial implementation of renewable energy, specifically for wind hybrid power generation sites that combine wind power and another generation option, such as photovoltaic, microhydro, natural gas or diesel power.
When the wind is not blowing, the alternate power plant comes online quickly to help meet grid demands, reducing overall consumption of fossil fuel on the supply side of the grid.
GE has conducted wind measurement studies in Indonesia, gathering data on wind power potential within certain areas to confirm viability of developing up to 80MW of wind projects. BPPT will conduct feasibility studies for the projects, help raise financing and win regulatory approvals.
One-third of Indonesians have no access to electricity. By adding 1.3 million households a year, the country hopes to supply electricity to 93% of the population by 2025.
