By Pandu Setiabudi
Indonesian state-owned utility PT PLN plans to develop a nationwide transmission network to connect renewable energy plants in remote regions with major demand centres, the company’s chief executive said.
The so-called “Green Enabling Supergrid” will be included in PLN’s 2025–2034 Electricity Supply Business Plan (RUPTL), President Director Darmawan Prasodjo told members of the House of Representatives Commission XII during a hearing session on Wednesday.
Under the plan, PLN aims to construct about 63,000 km of transmission lines by 2040, with 48,000 km targeted for completion by 2034.
“There will be what’s called the Green Enabling Supergrid or Green Enabling Transmission in the 2025–2034 RUPTL. As mentioned earlier, by 2040 we expect around 63,000 km of circuit transmission lines, with 48,000 km targeted by 2034,” said Darmawan.
He explained that this transmission infrastructure represents the government’s role in reducing investment burdens and technical and financial risks for developers of renewable energy power plants, many of which are located in remote areas.
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“With the Green Enabling Supergrid in place, renewable power plants can directly transmit electricity to demand centers. Previously, if a hydro or geothermal power plant was located in a remote area, the developer had to bear the additional cost of building transmission lines, which made electricity prices high. But with the state's presence through the Green Enabling Supergrid, developers are no longer burdened by such large transmission investments,” he added.
He said that under the current model, developers of hydro or geothermal plants must build their own transmission infrastructure, raising electricity costs. The state-funded grid would remove that burden, lowering financial risk for investors.
The project is expected to yield low returns of around 2%, while funding costs are estimated at 8% to 9%, making government support critical.
Indonesia is seeking to boost renewable energy investment as part of efforts to cut emissions and meet its climate targets, including net-zero by 2060.
Editing by Reiner Simanjuntak
