REPUBLIKA.CO.ID, BAKU - PT PLN (Persero) affirms its commitment to support the vision of energy self-sufficiency proposed by the government through the use of clean energy. At the 29th Conference of the Parties (COP) in Azerbaijan, the company presented various green funding initiatives to support projects related to energy transition in the homeland.

Special Envoy of the President for International Trade and Multilateral Cooperation, Mari Elka Pangestu, said that the Government of Indonesia has initiated the Global Blended Finance Alliance (GBFA) to embrace various developing countries to collaborate in financing the energy transition. Since its launch at the G20 summit, GBFA has been followed by several countries such as France, Canada and Kenya.

“GBFA aims to help finance as an effort to mitigate climate change and the SDGs. Estimates (financing) for climate action alone range between 1-2 trillion US dollars. If SDGs efforts are added to it, the amount will reach about 6 trillion US dollars,” Mari said in the Indonesian Pavilion Talkshow “Fostering and Enabling Innovative Climate Finance Mechanism” at COP29, Baku, Azerbaijan, Tuesday (12/11).

In this case, Mari continued, developing countries including Indonesia should devise strategies to address the funding gap. According to the Finance Ministry's calculations, about 280 billion US dollars will be needed for Indonesia's entire climate action until 2030, of which only about 30 percent could be funded by the state budget, so the rest will come from private and other sources.

“As Mr Hashim (Djojohadikusumo) said in his speech yesterday, he reiterated that the new government will continue the commitments of the previous government. And this (GBFA), is one of the commitments that we hope to continue,” Mari added.

Meanwhile, PLN Finance Director Sinthya Roesly revealed that PLN as the backbone of electricity in Indonesia has consistently demonstrated its commitment in the management of green investment funds to support the vision of energy self-sufficiency. Therefore, PLN continues to raise green financing from public, bilateral, multilateral to private institutions.

In this context, PLN has designed several green financing initiatives, one of them through the preparation of the Sustainable Linked Financing Framework (SLFF) and the Green Financing Framework (GFF).

Sinthya explained that PLN has designed a strategy for financing green energy projects in the energy transition in the country. PLN is targeting the development of a 75 percent renewable energy-based plant. To reach that target, funding is expected to reach more than $100 billion through 2033.

“To obtain financing of the energy transition, one of the most important according to PLN's perspective is to prepare the right project. We have hundreds of project lists ranging from generation, transmission and distribution, including smart grids,” Sinthya said.

Sinthya also added that PLN will continue to explore various funding options, both through cooperation with international lenders and local resources to ensure the energy transition goes as planned. Some partners of financial institutions that provide support for PLN's energy transition include World Bank, Asian Development Bank (ADB) and Just Energy Transition Partnership (JETP).

“In the past two years, we have secured approximately $2.9 billion and we are currently in discussions with ADB for financing of approximately $4.8 billion. We are also in talks with several other investors and the total funding potential we already have is 46.9 billion US dollars,” Sinthya said.

Ikuti Whatsapp Channel Republika