State-owned energy giant Pertamina aims to gradually increase its investment spending for renewable energy to around 15 percent of its total capital expenditure by 2030 from a mere 1 percent at present.
Pertamina set a 2030 target to generate 2,300 megawatts (MW) from geothermal power plants and 600 MW from solar power plants, as well as distribute 17,000 barrels of biofuel per day.
Within the same time frame, the company will be seeking opportunities to produce 300 MW from wind power plants and 200 MW from biomass plants.
“The allocated investment for the renewable energy business might reach around 10 to 15 percent in 2030, compared to only nearly 1 percent as of today,” Pertamina investment planning and risk management director Gigih Prakoso told reporters recently.
Pertamina has allocated US$5.59 billion in capital expenditure in 2018, up 55 percent annually. About 59 percent of the allocated figure will be used to support its upstream business activities.
Moreover, Gigih said Pertamina would use organic and inorganic growth strategies to boost its renewable business. “At first, we will develop such a business ourselves. Then, we’ll also pursue an acquisition in the next few years,” he said.
Pertamina currently operates geothermal power plants with a combined capacity of only 587 MW, a mere 2 percent of the country’s total geothermal potential.