Under the MoU – announced at the Powering Indonesia conference - KEMENDES and GE will work together to develop and implement power generation technology solutions for rural and island communities who lack access to electricity.
Villages, Disadvantaged Regions and Transmigration Minister Eko Putro Sandjojo said that around 13,000 unelectrified villages across the archipelago need at least 500 kilowatts of electricity each. The objective of the MoU, and plans to supply power to communities in need, was explained by the Minister in this interview.
A Public-Private Sector Solution
GE will support the MoU by conducting assessments of best-fit technology solutions under the Government of Indonesia Rural Electrification program. This was highlighted by Carlos Lange, President, Distributed Power, GE Power, Gas Power System.
A detailed technology assessment is one of the first-step initiatives of the MoU – it will help identify the major challenges faced by the 13,000 villages. Introducing local stakeholders to participate in the development and execution of the program is another area that GE will help facilitate.
GE’s portfolio of distributed power solutions include hybrid gas or diesel generators with photovoltaic support, renewable power plants, as well as digital power and microgrid solutions. In addition, advanced data gathering, and real-time analytics generated by digital industrial apps and software will help optimize efficiencies for the villages.
The scale and detail of the MoU impressed conference attendee, Henry Ch Maehl, Director, PT Euroasiatic Jaya.
Powering and Connecting Island and Rural Populations
Developing rural and island communities is an important priority for Indonesia as it seeks to pursue an economic growth rate of >5% in the near-term.
Many remote villages and islands have lagged (development wise) due to a lack of access to reliable and affordable electricity. Indonesia’s energy gap is influenced by a number of factors including the country’s unique geography – it is difficult to build large-scale national grids to serve more than 17,000 islands, spread across 5,000 kilometers.
Despite the difficulties, the nation has made steady progress in its electrification efforts. While the national electrification rate was 66% in 2009, it has improved to 84% by 2014. In 2013 alone, an additional 3.7 million new consumers gained access to power for the first time.
State-owned electricity firm PLN plans to increase the national electrification ratio to 100 percent by 2024 from 91.16 percent last year. To achieve this, PLN needs to procure 75,900 megawatts of electricity, 67,785 kilometers worth of transmission circuits and substation units with a total capacity of 164,544 mega volt ampere (MVA).