New renewable power law, an opportunity for Indonesia to shift from coal energy

The Indonesia parliament, for the initial time, prioritizes new legislation on recyclable energy, presently relying mainly on coal power fuelled generation. The nation also is a significant exporter of coal. Meanwhile, the country has the biggest geothermal power resources in the world and big chances for the generation of solar because of a lot of sunshine, as well as the wind energy production with the greatest coastlines of any nation.

The question the nation is asking itself is what resources of energy will be of benefit the most to the country’s economy.

As reported by Mongabay, currently, the nation has declared a priority law series for the year 2020 that, for the initial time, comprises of budget on the new and recyclable energy.

The current dependence on coal energy is hard and problematic for the nation, both from an ecological and economic point of view. Rising prices, monetary obligations, and lower than anticipated demand for electricity is building challenges for the country-owned energy utility PLN. 

With the new planned laws, there is overall trust; it means a shift from its dependence on coal energy to utilizing clean power technologies. Having promised to reduce emissions, it aims at an 11 percent reduction in total carbon dioxide emissions from its power sector under the climate agreement of Paris.

The new law appears to be among those efforts dedicated to pushing the development of recyclable energy. How far it puts a plain path for the transmission of electricity in Indonesia will have to be looked at. To have a real effect, recyclable energy development is expected to result fast.

The draft legislation path to becoming a law is long because it will have to be taken for public introduction before being taken to the government.

Experts trust the new law will bring a recyclable power market, as well as projects incentivizing feeding recyclable power into the grid.

With the present price caps and other particular coal policies, it is trusted that the budget will bid a device for market pricing and incentives in a bid to make recyclables cost aggressive to coal energy.

For a successful law, there is a requirement to need power producers, and here chiefly PLN to diversify its sources of power to incorporate renewable. Erika Hamdi, who is the finance analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), notes to an exciting factor about the system of energy.

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