The key findings of the report “Pathways to Financial Sustainability for PLN through Renewable Energy Development” by IEEFA are:
- The development of renewable energy in Indonesia has been underwhelming, and the renewable energy mix in 2023 only reached 13.1% due to the dominance of coal-fired power plants.
- The massive expansion of coal-fired power plants in fulfilling the mandate from the government of Indonesia created financial problems for PLN.
- Indonesia was burdened with US$8 billion of electricity subsidy and compensation in 2022 due to PLN’s heavy reliance on coal-fired power plants.
- The retirement of coal-fired power plants gradually and the acceleration of renewable energy development, especially solar and wind, can be a win-win solution to achieve PLN’s financial sustainability and Indonesia’s Paris Agreement commitment.
Access the complete report here
