, Indonesia

What can Adaro Power contribute to the shift to a green economy?

The company developed renewable power projects and wanted to make sure that its plans will be achieved in a just manner.

Adaro Power, as part of Adaro Energy Group, expressed confidence that it can contribute to the shift towards green economy because of its proven experience in building large-scale and complex projects, said Dharma Djojonegoro, President Director of Adaro Power, during the Asian Power Summit, held 20 to 21 April.

"I think we understand and recognise that the direction is going there [green economy]. In our perspective, the green economy is driving demand for green minerals,” Dharma said, as one of the panelists at the summit.

Dharma also believes that Adaro Power, which operate thermal and metallurgical coal assets in Indonesia, is well-positioned to contribute to this green economy because they have the necessary skillset such as a strong balance sheet and financial capabilities. Adaro Energy Indonesia recorded a 58% increase in revenue throughout 2021, the company posted revenue of US$3.993m, compared to US$2.535m in 2020.

Some of its renewable energy projects are the green industrial estates in North Kalimantan including plans to build several gigawatts of hydropower and solar photovoltaic (PV) plants, as well as participating in Singapore’s electricity import project which is included in consortiums to pass pre-qualification of waste to energy in Indonesia. The renewable energy projects also consist of wind turbines and solar PV projects to support state-owned company, PT Perusahaan Listrik Negara or PLN, through unsolicited proposals and tenders.

Adaro Power is in the process of developing captive power projects for the group’s other business units, such as AMC (Mini Hydro). It has captive solar PV of approximately 600 kilowatts (kW) to supply to their mining areas. They also already installed 130 kW-peak (kWp) PV Rooftop and another 468 kWp PV Floating. The project is expected to generate 156,000 kW per hour per year and serves a captive market to support Adaro Group’s mining operation. The environmental impact of this project includes replacing 33,000 liters of diesel per year and avoiding the emission of 98 tons of CO2/year.

Dharma underlines the importance of the discussion to ensure justice is in this transition. “To make sure nobody is left behind, and the least fortunate can still afford it,” he said.

Just transition should be ensured to promote sustainable development and eradication of poverty, creation of decent work and quality jobs, transfer of technology as well as support to developing countries. The just transitions also try to discuss how to mitigate socio-economic impacts and job shifting in the transition process.

According to Dharma, who also served as Deputy Chair of Trade and Investment in B20, part of G20 meeting which will be held in Indonesia this year, the transition to renewable energy doesn’t happen overnight. “This needs a transition plan, and takes time,” he added.

What can be done, in Dharma's opinion is to bring the renewable energy issue to international meetings such as G20 and discuss it with stakeholders from many countries, as well as support the government of Indonesia. Dharma mentioned that PLN already has a scene towards the green energy transition and 2060 carbon neutral. In PLN plans, starting from 2020, Coal Fire Power Plant (CFPP) capacity will be reduced and the retirement plant or 1st stage of Subcritical Retirement (1 GW) will be started in 2030.

“We are all going to green economy both Indonesia and Adaro and anybody who knows the technology and know-how of it, we are open to discuss it,” he said.

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