Jakarta, CNBC Indonesia – Main Director of PT Pertamina (Persero) Nicke Widyawati explained that there are various factors that affect the high cost of green energy, especially in Indonesia.
Nicke said, there are at least four factors that influence the high price of green energy in Indonesia.
First is the limitation of technology. Nicke said that the presence of technology would reduce the cost of capital expenditures, which in turn could reduce the price of clean energy being sold.
“We can see that solar PV technology, wind power technology over the last 5-10 years can be reduced. Around 80%. So it’s low-carbon fuel,” he explained at the Indonesia Sustainability Forum (ISF) event at the Park Hyatt, Jakarta, Thursday ( 7/9/2023).
Nicke said, the availability of technology can improve a holistic view and increase productivity.
“We can improve technology, holistic view, I mean, upstream representation, what technology can increase side productivity as well as production, reduce not only capital expenditure, but also OPEX (operating costs),” he added.
Then, the next factor, Nicke revealed that ecosystem development could also affect the price of clean energy in Indonesia.
“The second is ecosystem development. In discussing new products, we must take a holistic approach, starting from the old supply chain, and also the ecosystem,” he explained.
He revealed that it is important for eg the distribution process. With well-organized ecosystems and regulations, it can even increase the demand for clean energy and also boost the economy in Indonesia.
“It’s about economies of scale. Businesses need economies of scale to start, therefore regulations are needed to create demand,” added Nicke.
Then the third is the investment factor. Nicke said that the increasing demand from the public could make investors interested in investing in clean energy in Indonesia.
“So the demand increases gradually when the demand is there, so the investment we need is biofuel or hydrogen or ammonia and other energy,” he added.
And finally, empowering the community to become producers as well as consumers for clean energy in Indonesia.
“How to increase awareness and education,” he said.
That way, Nicke said that a holistic approach was needed by involving the government and the private sector.
“I believe that the shift to low-carbon fuels requires a holistic approach that involves the government as well as the private sector, as well as the support of the public and financial investors,” he concluded.
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