Hydropower Issuer Expands Business into Solar Power, Entrepreneurs Reveal Challenges!

PT Arkora Hydro Tbk (ARKO), an infrastructure issuer specialising in new and renewable energy (EBT) with a focus on developing Hydropower Plants (PLTA), is expanding its green energy business into Solar Power Plant (PLTS) projects.

The President Director of PT Arkora Hydro Tbk (ARKO), Aldo Artoko, stated that in its initial stage, ARKO focused on the hydropower business to maximise Indonesia’s hydro potential. However, the government’s commitment to achieving energy self-sufficiency targets through the renewable energy sector has encouraged ARKO to enter the solar energy sector.

ARKO also views the expansion into the solar energy business as part of its business strategy to strengthen its renewable energy portfolio, considering that hydropower production peaks during the rainy season, meaning production is not maximised during the dry season.

Through solar energy, ARKO aims to strengthen its renewable energy business portfolio through the acquisition of solar power projects. Solar power projects are considered advantageous because they can be built more quickly and possess great solar energy potential; however, development still faces several challenges related to the availability of land to be optimised for solar plants, as well as issues regarding supply and demand stability and the need for supporting infrastructure, including storage.