Futureproofing Indonesia and South-East Asia through Hydropower
Based on its technical potential and economic growth, Indonesia has been identified as a strategic key market by BayWa r.e. for hydropower development in Southeast Asia. It is estimated that the country’s electricity consumption will almost double by 2027.
It is therefore essential that Indonesia secures cost-effective and reliable energy sources to ensure the reliability of the nation’s power supply. In its 10-year Electricity Development Plan (RUPTL) renewables, and particularly hydropower, are expected to play a significant role. The share of energy generated from renewables is projected to increase from the current 12 percent to a total of 23 percent by 2025, of which hydropower plants contribute 43 percent. To achieve this goal, Indonesia plans to add 8.2 GW to the current 5 GW of installed hydroelectric capacity to the nation’s grid.
With this in mind, BayWa r.e. has set up a team in Jakarta to develop hydropower station projects with a focus on small to medium run-of-the-river plants, which bring the following significant advantages:
- Limited ecological impact when compared to large hydropower projects, as dams and reservoirs are not necessary (avoiding flooding of large areas, displacement of inhabitants, etc.)
- Large worldwide potential with approximately 220 GW untapped – 120 GW in Asia (UNIDO, 2016)
- Synergies with other renewables on technical-electrical aspects as well as approval procedures and regulations, since these are similar in many countries
Our team in Jakarta has extensive experience in bringing forward and developing run-of-river hydro schemes within Indonesia and the wider South East Asian market. Our strong local presence and experience with multiple renewable energy sources and their associated approval processes enable us to provide our clients with integrated, environmentally friendly and economically reliable development solutions.