ASIATODAY.ID, JAKARTA – The Indonesian government consistently continues to move to accelerate the implementation of the energy transition to achieve net zero emissions by 2060.
The Indonesian State Electricity Company or PT PT PLN (Persero) is at the forefront of this effort. PLN has also launched various new innovations, one of which is providing renewable energy certificate (REC) services for industrial players in the country.
PLN recorded that total REC usage in 2023 will reach 3.08 terawatt hours (TWh) or an increase of 75 percent compared to the realization in 2022 of 1.76 TWh. Meanwhile, since its launch in 2020 until the end of 2023, PLN’s total REC sales have reached more than 5 TWh.
Until the end of 2023, 296 customers have used REC PLN. Industry and business sectors in the regions of West Java, Banten, East Java and DKI Jakarta make the most use of REC.
Currently, there are four PLN plants ready to supply green electricity to REC customers, namely the Kamojang Geothermal Power Plant which is in the Java, Madura and Bali electricity systems; The Lahendong Geothermal Power Plant and the Bakaru Hydroelectric Power Plant which are included in the Sulawesi electricity system and the Ulubelu Geothermal Power Plant which are included in the Sumatra electricity system.
PLN also uses an electronic tracking system from APX TIGRs located in California, United States, to ensure that RECs issued cannot be bought or sold to other parties. The entire process of issuing and selling RECs has also been verified to meet international standards.
What is RECs
Renewable Energy Certificate (REC) is a green energy certificate that can be used to claim electricity consumption from new renewable energy sources, such as solar, wind or water. REC is one of PLN’s innovations to make it easier for customers to gain recognition for the use of green energy that is transparent, accountable and internationally recognized.
REC proves that every electricity per megawatt hour (MWh) used by customers comes from new renewable or non-fossil energy plants. In this way, customers can demonstrate their commitment to fighting global climate change and supporting green energy projects in Indonesia.
How REC Works
RECs are generated when a renewable energy power plant produces one megawatt-hour (MWh) of electricity and supplies it to the electricity grid. Because electricity from renewable energy sources cannot be distinguished from electricity generated from other sources. RECs serve as a mechanism to differentiate and track renewable energy in the power grid.
For example, if a wind power facility produces 5 MWh of electricity, then the facility has five credits to store or sell. If a company buys these credits, then the company buys electricity from a wind power source. Then the company can claim that 5 MWh of electricity used comes from clean or renewable energy sources.
In this way, green electricity consumers can achieve carbon neutral or 100% renewable energy targets without having to build their own infrastructure or change their electricity sources.
Benefits of REC
REC provides various benefits for green electricity producers and consumers, including:
– For green electricity producers, RECs can increase the value and income from the electricity they produce, as well as provide incentives to develop more new renewable energy projects.
– For green electricity consumers, RECs can help them achieve sustainability goals, such as reducing greenhouse gas emissions, improving reputation and meeting environmental standards.
– For the environment, RECs can encourage the growth of new renewable energy, reduce dependence on fossil fuels, and protect natural resources.
The impact of REC for Indonesia
Apart from providing benefits to green electricity producers and consumers, REC also has a positive impact on Indonesia, including:
– REC can support the achievement of the national renewable energy mix target of 23 percent by 2025, in accordance with the General National Energy Plan (RUEN).
– REC can increase investment and employment in the new renewable energy sector, which has the potential to increase Indonesia’s Gross Domestic Product (GDP) by 0.3 to 1.3 percent in 2030.
– REC can reduce greenhouse gas emissions from the electricity sector, which contributes around 40 percent of total national emissions. This is in line with Indonesia’s commitment to reduce emissions by 29 percent by 2030. (ATN)
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