Pathways to Financial Sustainability for PLN through Renewable Energy Development 2

31 Pathways to Financial Sustainability for PLN through Renewable Energy Development 4 Key Findings The development of renewable energy in Indonesia has been underwhelming, and the renewable energy mix in 2023 only reached 13.1% due to the dominance of coal-fired power plants. [...] In 2021, the MEMR announced it would form a Nuclear Energy Program Implementing Organization (NEPIO) in an effort to fulfill the requirements of the International Atomic Energy Agency (IAEA) to build a nuclear power plant.28 The NEPIO is still in the draft phase.29 The risks and liabilities associated with the development of nuclear power plants should be considered. [...] If the adjustment is not approved and there is a difference between the set tariff and the actual tariff, the GOI must pay compensation to PLN for the full amount of the difference in sales value. [...] Pathways to Financial Sustainability for PLN through Renewable Energy Development 29 to the complicated process to secure environmental consents, and the substantial amount of engineering design work required, including the long lead-time to design and build the hydro turbine. [...] In addition to solar and wind, PLN should accelerate the procurement of hydro and geothermal projects to mitigate the intermittent nature of solar and wind, as both technologies take longer to plan and build due to resource identification and the environmental and social aspects of the technologies.