Danantara: 100 GW solar power development requires Rp1,130 trillion investment
Jakarta (ANTARA) - The Investment Management Agency (BPI) Danantara has stated that the development of solar power plants (PLTS) with a capacity of 100 gigawatts (GW) is estimated to require investment of around Rp1,130 trillion.
“Recently we saw the President conduct a groundbreaking for the establishment of 100 gigawatts of solar power plants, which is estimated to require investment of Rp1,130 trillion,” said Danantara Managing Director of Global Relations and Governance Pahala N. Mansury in Jakarta on Wednesday.
According to him, the scale of the investment requirement demonstrates the need to build a financing ecosystem that supports the development of renewable energy and the green economy in Indonesia.
Pahala said investment needs in the green energy sector will continue to increase along with Indonesia’s efforts to accelerate its energy transition.
To that end, he stated that Danantara is seeking to play a role as one of the drivers of investment and financing for green energy projects.
In addition to solar power development, Danantara is also promoting the construction of electricity grid infrastructure capable of accommodating renewable energy-based power.
“Indonesia not only needs green-powered electricity generation, but also needs grids or transmission that can truly accommodate or transmit green-based energy,” he said.
According to Pahala, the development of electricity networks is important because renewable energy has intermittent characteristics, so infrastructure is needed that can integrate and distribute that energy optimally.
Danantara is also encouraging the development of a supporting ecosystem for renewable energy, including the cabling, inverter and solar PV industries.
Furthermore, Pahala explained that Danantara can act as an equity investor in supporting the financing of green economy projects.
This role, he said, is supported by the issuance of Patriot Bonds, which allows Danantara to develop sustainable financing schemes that can be applied within a blended financing concept.
He assessed that such schemes can help unlock financing for renewable energy projects that require large investments.
“This is what we truly hope for going forward, that Danantara as the engine of energy transition can truly be built going forward,” he said.
President Prabowo Subianto officially launched the strategic 100 GWp solar power programme at the Gilimanuk Operation Monument in Jembrana, Bali, on Tuesday (25/8).
The offline inauguration in Gilimanuk, Bali, was connected online with three other locations: the Gajah Mungkur Floating Solar Power Plant (Wonogiri, Central Java), the Sembur Village Solar Power Plant (Batam, Riau Islands), and the Rengit Island Solar Power Plant (Bangka Belitung).
The Gilimanuk Operation Monument PLTS and BESS are part of the Fat Burning Bali Programme, replacing fuel-fired power plants with solar energy.
The solar power capacity in Bali is 198 MWp, the BESS capacity is 666 MWh, with a land area of approximately 211 hectares. The project is targeted to operate in 2028.