Govt allocates 60% of renewable projects to IPPs in new RUPTL

Up to 60% of the additional power capacity to be developed over the next 10 years, as outlined in the new 2025-2034 Electricity Supply Business Plan (RUPTL) of state-owned electricity company PT PLN, will be allocated to independent power producers (IPPs), according to Minister of Energy and Mineral Resources Bahlil Lahadalia.

The draft of the RUPTL for 2025–2034 sets a target of adding 71 gigawatts (GW) of power plant capacity, with 70% of this coming from renewable energy sources (EBT).

This decision to involve the private sector more heavily is part of the government’s strategy to accelerate renewable energy projects, which have been slow to progress in recent years. Additionally, it is expected to ease the financial burden on PLN and attract strategic investments.

“A significant portion, about 60%, of the 71 GW will be handed over to the private sector,” Bahlil said during the inauguration of a strategic electricity project at the Jatigede Hydropower Plant in Sumedang, West Java, on January 20, 2025.

However, Bahlil emphasized that IPPs selected for these projects must have a proven track record in power generation.

Read also : Govt targets ambitious clean energy goals in new RUPTL

The new RUPTL also mandates the construction of approximately 48,000 circuit kilometers of transmission networks between 2025 and 2034.

“We are also emphasizing that transmission development will be massive over the next 10 years. Previously, transmission infrastructure was not developed optimally,” Bahlil added.

As previously reported, PLN estimates that an investment of Rp 2,400 trillion is needed to expand the installed capacity by 71 GW by 2034.

 “We need Rp 2,400 trillion—around Rp 240 trillion per year for the next 10 years,” said PLN’s EVP of Renewable Energy, Zainal Arifin, on January 16, 2025.

He acknowledged that PLN’s financial capacity is limited, with the company able to contribute only Rp 70 trillion to Rp 100 trillion of the total investment.

Therefore, PLN is actively seeking private investment in these projects.

“We are opening up opportunities as widely as possible for IPPs. As a result, EBT projects will be dominated by IPPs, with a composition of 60%-70% or 70%-30%, heavily favoring IPPs,” Zainal concluded.

Editing by Reiner Simanjuntak