Since transforming the Adaro Group’s structure in 2022, which among others created the Adaro Green pillar, PT Adaro Energy Indonesia Tbk (AEI) has been seeking to capture renewable energy business opportunities to be operated by the companies within this growth pillar. AEI plans to harness the power of renewable energy by embracing solar, hydro, biomass, wind, and waste energy sources, which will reduce carbon footprint and is inline with Indonesian government’s commitment to achieve net zero emissions (NZE) in 2060 or sooner, as supported with the latest Enhanced Nationally Determined Contributions (ENDC). 

The significant gap between Indonesia’s new and renewable energy potentials and the current utilization level has encouraged the government to launch Renewable Energy Based Industrial Development (REBID) as one of the strategic programs for accelerating large-scale renewable energy utilization at regions that have abundant renewable energy potentials and low energy loads and utilizing renewable energy for industrial development. REBID is implemented by creating new demand or market to integrate industrial development, attract investments, and increase regional development.


Renewable Energy Projects as Carbon Reduction Initiatives

In 2023, AEI’s green initiatives were best represented by the projects of its subsidiaries PT Adaro Clean Energy Indonesia (ACEI) and PT Adaro Power (AP), which have developed, are developing and are preparing to develop several renewable power plants, along with various acceleration programs for new and renewable energy development being pursued by the Indonesian government to achieve the target of 23% new and renewable energy in 2025. 

Several renewable projects which have been and are being developed include solar power plant and battery energy storage system (BESS) at PT Adaro Indonesia’s facilities in Kelanis, Central Kalimantan; wind turbine and BESS in Tanah Laut, Kalimantan Selatan; mini hydropower plant in Lampunut, Central Kalimantan; and hydropower plant to supply clean energy for mineral processing and industrial activities in the industrial park in North Kalimantan and to support Indonesia’s energy mix diversification.


Solar PV at Kelanis Facility of PT Adaro Indonesia

The solar PV at Adaro Indonesia’s Kelanis Dedicated Coal Terminal with 598 kWp capacity produced 793,67 MWh of power in 2023. This solar PV will reduce Adaro Indonesia’s consumption of diesel fuel by around 200,000 liters/year or around $130 thousand/year, in addition to reduce carbon emission by around 500 tonnes/year. This is an initial project, which will continue to be developed by adding more solar PV capacity to increase renewable energy supply for AI’s operational activities. 

AEI will continue to develop renewable projects through AP and ACEI, to supply electricity for the Adaro Group’s operational activities and to reduce the company’s fuel consumption and CO2 emission.


Wind Power Plant and Battery Energy Storage System (BESS) in Tanah Laut, South Kalimantan PT Adaro Power, together with Total Eren S.A. and PT Pembangkitan Jawa Bali Investment (PJBI), signed an Power Purchase Agreement with PT PLN (Persero) for the Tanah Laut wind power plant with a capacity of 70 MW with a Battery Energy Storage System with a capacity of 10 MW/10 MWh. This is the first wind project on the island of Kalimantan, the first project awarded after the PLN RUPTL 2021-2030 was launched by end of 2021, and the third wind power plant project in Indonesia. Also, it demonstrates AEI’s commitment to expand the business to the renewable energy sector to support the government’s carbon and emission reduction efforts.


Large-Scale Hydropower Plant in North Kalimantan

In line with REBID explained above, through PT Kayan Hydropower Nusantara (KHN), AEI is partnering with Sarawak Energy Services Sdn. Bhd., and PT Kayan Investama Internasional in Mentarang Induk Hydroelectric Project (MIHEP) to build a hydropower plant in Malinau regency, North Kalimantan under the ownership proportion of 50%, 25% and 25%, respectively. 

MIHEP is one of Indonesia’s National Strategic Projects and held the groundbreaking ceremony on March 1, 2023, which was attended by President Joko Widodo. It is carried out with the commitment to comply with national regulations as well as international standards and best practices for safe and sustainable hydropower development. Throughout 2023, various activities were conducted to achieve the target to commence the project’s commercial operations in 2030. The AMDAL (environmental impact assessment) and Environmental and Social Impact Assessment (ESIA) have been carried out and environmental approval has been obtained for the project, in addition to community empowerment programs for the local people.

The basic design and access road for MIHEP have been developed, and the project was in the preparation stage for construction. The plant will have an installed capacity of 1,375 MW, and will supply power for activities in the industrial park being developed by PT Kalimantan Industrial Park Indonesia di in Bulungan, North Kalimantan. With concrete faced rockfill dam (CFRD) of 235 meters high, Mentarang Induk hydropower plant will be one of the highest in the world.

Last modified on May 31, 2024, 9:01 pm | 7659