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Jakarta (VNA) – Indonesian Ministry of Energy and Mineral Resources and global technology provider Hitachi Energy have signed a letter of intent (LoI) on the development of green energy technology on June 19 in Jakarta.
The LoI was signed by the ministry's Acting Secretary General Dadan Kusdiana and Hitachi Energy's Regional Head South Asia, N. Venu.
In a statement, Dadan noted that the agreement aims to accelerate energy transition in Indonesia.
He remarked that the agreement between both parties focuses on knowledge transfer and joint studies for technology development solutions, particularly in the field of electricity infrastructure.
After witnessing the signing, Indonesian Minister of Energy and Mineral Resources Arifin Tasrif stated that electricity demand in Indonesia is projected to reach 1,942 terawatt-hours (TWh) by 2060. To achieve this, Indonesia requires support in terms of technology, industry, and infrastructure from all stakeholders.
According to the minister, the biggest challenge in the development of renewable energy-based electricity lies in power infrastructure, given Indonesia's archipelagic nature with different energy sources on each island.
Therefore, the government has initiated a national super grid programme to interconnect islands, particularly the larger islands in Indonesia.
Tasrif emphasised the need for collaboration and cooperation with national and international stakeholders, including Hitachi Energy, to expedite the programme's implementation.
He said that Hitachi Energy is one of the companies possessing the technology and digital transformation capabilities necessary to accelerate the energy transition process.
Hitachi Energy CEO Claudio Facchin said that the company will support Indonesia in achieving its set targets, where accelerating energy transition plays a crucial role in achieving net zero emissions and addressing the climate emergency.
He added that the technical collaboration will focus on areas such as renewable energy integration, interconnectors, power quality, grid edge technologies, and digital solutions to address the complexities of supply and demand in the new electricity landscape.
Hitachi Energy has been present in Indonesia since 1980, providing support for electricity infrastructure in the country. The company has also been involved in several energy transition projects in Indonesia, including the connection of the 220-megawatt (MW) Rantau Dedap geothermal power plant (PLTP) in South Sumatra, which supplies carbon-free electricity to the Sumatra grid.
Another project involves the implementation of grid edge solutions in several areas, including microgrids on Semau Island, Selayar, and Nusa Penida, contributing to meeting 20% of the electricity demand./.