PLN And SMI Sign MoU For Financing Power Plant Development Projects

PT Perusahaan Listrik Negara (Persero) and PT Sarana Multi Infrastruktur/SMI (Persero) signed a memorandum of understanding on the Cooperation for the Development of New and Renewable Energy (EBT) Based on the Indonesia One SDG Platform.

Meanwhile, the value of the cooperation is estimated at US$4.29B or around Rp64.35 trillion. Previously, the government had formed the “SDG Indonesia One” platform to mobilize public and private financial resources through joint financing schemes for infrastructure projects related to SDG achievements, including the development of New and Renewable Energy (EBT) projects in the electricity sector.

“This cooperation is one of the concrete steps of SOE synergy between PLN and SMI to realize the government’s target in accordance with Government Regulation No. 79 of 2014 concerning the National Energy Policy and Presidential Regulation No. 22 of 2017 concerning the National Energy General Plan, namely achieving the EBT mix of 23 percent by 2025. ” PLN Finance Director Sinthya Roesly said in a written statement, Saturday (5/16/2020).

The cooperation is carried out to build 1,403 MW or 40 percent of the total addition of EBT power plants by PLN. As is known, PLN has planned to add an EBT power generation capacity of 16,765 GW during 2019-2028.

The majority of SMI-funded power plants will be powered by water or hydropower with an energy capacity of around 904 MW. In addition to hydropower, the cooperation also allows PLN to build a geothermal power plant (PLTB) with a capacity of 360 MW, a wind or wind power plant (PLTB) with a capacity of 100 MW, a minihodro power plant (PLTM) with a capacity of 38.2 MW, and a power plant solar power (PLTS) with a capacity of 1.3 MW.

Meanwhile, around 55.5 percent or around 783 MW of the entire EBT power plant construction will be built in eastern Indonesia. In detail, the Maluku Maluku region is 111 MW, Nusa Tenggara is 25 MW, Kalimantan is 496 MW, and Sulawesi is 146 MW.

As a pilot project of the cooperation between PLN and PT SMI, there are 3 (three) projects planned to be executed in 2020, namely Geothermal Power Plant, Hydro Power Plant and Bayu Power Plant.

On the other hand, the cooperation is also part of Indonesia’s participation in the 2030 Agenda launched by the United Nations (UN) to reach 17 (seventeen) Sustainable Development Goals (SDG) where one of the targets is affordable and clean energy (Affordable and Clean Energy).

In other words, one of the goals of the collaboration is to ensure that access to affordable, reliable, sustainable and modern energy is available for everyone by 2030. In addition, the target of reducing greenhouse gases is 29 percent by 2030, where the energy sector is targeted contributed 314 million tons of carbon dioxide (CO2) gas.