The Indonesian government has formally established a partnership with Sun Cable, an Australian provider of renewable energy, as the first step toward establishing an energy distribution network that should unleash the estimated $115 billion economic potential of the green industry in the archipelago over the next decades.
According to Sun Cable’s statement, in a Memorandum of Understanding (MoU) that was signed at the G20 Summit in Bali, the firm and the Indonesian Ministry of Energy and Mineral Resources (ESDM) agreed to work together to establish technical inter-island grid connectivity programs and policies.
David Griffin, Sun Cable’s founder and chief executive officer (CEO), said that Sun Cable is proud to work with the Ministry of Energy and Mineral Resources to develop Indonesia’s grid connectivity policy and technical program. In addition, Sun Cable wants to impart its knowledge of solar energy generation and long-distance transmission to Indonesia as it develops its inter-island connectivity policy and technical strategy.
The Australia-Asia PowerLink project, which Sun Cable is currently working on, aims to generate solar electricity from the continent’s hinterland and distribute it to Singapore. It is the world’s largest solar generating, battery, and subsea cable project.
The project would provide 17–20 GW of power, a battery energy storage system of 36–42 GWh, and the longest subsea cable transmission system in the world at 4,200 km, mostly across Indonesian waters.
The inter-island power grid network of the archipelago could be illustrated by the subsea cable system. By 2035, the country must produce up to 298 GW, or 25 times its existing capacity, of renewable energy to meet the zero-carbon energy needs of its consumers and industry. However, the majority of their locations are located far from major urban areas or industrial hubs.
According to Arifin Tasrif, Minister for Energy and Mineral Resources, to link areas of high energy production with areas of high energy demand, energy infrastructure is important. In order to overcome this mismatch between renewable energy supplies and the locations of high electricity demand areas, as well as to maintain the stability and security of the electricity system, Indonesia is aiming to develop a super grid.
The development of the green industry in Indonesia could add at least $115 billion to the country’s economy and create five million jobs by 2035, according to a study entitled “The Green Komodo: Indonesia’s opportunity in the Green Industrial Revolution.”
The study stated that Indonesia has a rare opportunity to benefit from the so-called green industry or business, whose competitiveness, growth, and social acceptance depend on zero-carbon electricity. Five crucial industries in Indonesia have the potential to go green: mining and minerals processing, energy and fuels, transport manufacturing, food processing and agriculture, as well as IT infrastructure.
Indonesia may provide domestic and international consumers who are becoming more concerned about the environmental impact of the products they consume by tying these businesses to renewable energy sources. As new markets develop, these industries will consequently experience major changes over the ensuing decade.