Indonesia’s Pertamina invest $12b for ‘clean’ power capacity

The investment aims to add 10 GW power capacity by 2026.

Indonesia state-owned oil and gas company PT Pertamina will invest $12b to add 10 gigawatts (GW) of "clean" energy capacity by 2026.

Pertamina said it plans to add 6 GW of gas-fired power plants, 3 GW of renewables such as geothermal, and 1 GW from other projects like “blue” and “green” hydrogen. 

For gas-fired power projects, the group is currently developing several gas-fired power projects including the 1.8 GW Jawa-1 CCGT project in Indonesia and 1.2 GW of IPP projects in Bangladesh. The remaining 3 GW will come from domestic and overseas projects.

For the 3 GW of renewables, Pertamina plans to develop a 1.1 GW of geothermal plant with the remaining 1.9 GW consisting of a hybrid mix of solar power plants, wind projects, and other renewables.

In Indonesia, gas accounts for 28% of its installed energy capacity with 19.5 GW whilst renewables account for only 11% with 7.8 GW in 2020.

According to its 2021 to 2030 national electricity plan, Indonesia aims to raise its share of renewables to at least 48% or almost 20 GW, an increase from a 30% target set in its 2019 to 2028 plan.