Renerpha Energi Utama: Renewable Energy is environment friendly, easy to be operated, and low operation cost

The electricity sector is considered as the fundamental in triggering economic growth both in developed and developing countries. It plays a vital role in the economic activity chain in terms of production, distribution, and consumption of goods and services. In Indonesia, the electricity industry has controlled by the state owned company, PT PLN (Persero). This based on the government regulation number 30/2007, which stated that PLN acts as the national electricity authority to develop and maintain the long term electricity system planning, which is affected by population growth, demand-supply statistics, economic development, and private generation capacity. However, in supplying sufficient electricity for final customers (residential, commercial, and industrial retail consumers), PLN could not survive by its own. This due to the increment of pressures to provide the high quality of service with affordable cost. In this circumstance, an electricity company has to be supported by suppliers who have the capability to supply electricity, which is determined by time, quality, cost, and quantity.

​With more than 250 million of population, PLN needs at least 44 GW a day to supply electricity towards public. This by consideration that 80% of that capacity has only been supplying towards the big cities in Java-Bali Regions. As the demand of electricity has rapidly increased along with the need of security and continuously electricity supply, in 2014 the President of Indonesia, Joko Widodo, authorized the 35.000 MW program to solve those problems. The 25.000 MW will be developed by private developers’ cooperation through the Independent Power Producers (IPPs) scheme. And the 10.000 MW will be developed by PLN.

On the other hand, According to Indonesia Clean Energy Development Program (ICED) (2014) , Indonesia Government has targeted to prevent 4 million tons of CO2e. In accordance to this, ICED suggested PLN to install at least 120 Mega Watt capacity of renewable energy plant in 20 potential sites in the commercial project’s scheme, which has contributed towards 1,2 million people especially in villages and suburbs area in Indonesia. By this plan, ICED (2014) has optimized that the government can reduce the annual $250 million subsidies of electricity fosil fuel bases, which positively affect towards the national economic development.

As the geographical condition gives the limitation of accessibility and high investment of power lines, therefore, developing Micro Hydro Power and Solar Power Plants can fulfil the essential power and sustain the security of electricity supply in many districts, villages, and rural area of Indonesia. Moreover, it inlines with the government program for reducting CHG emission. On the other hand, the benefit from installing Micro Hydro Power and Solar Power Plants are easy to be operated and low operation cost. This might happens because the hydro and solar energy have been converted towards electricity.

According to Pasalli & Rehira (2014) on their academic with the title: "Design Planning of Micro Hydro Power Plant in Hink River", published by Sciece Direct:

"The energy from the flowing / falling water can be directly utilized by suitable machines to avaid the efficiency loses of the generator. The micro hydro system includes a water turbine that converts the energy of flowing water into mechanical energy. This mechanical energy drives a generator which produces electrical power. The efficiency of the overall system, given the pipe friction loses and turbine defiviencies, is generally on the range of 50% of theoritical power associated with the energy of the flowing water".

In this circumstance, a Hydropower system can be produce the electricity for the purpose of homes, farms, and remote communities with the capacity from 1 to 10 MW depends on the needs and geographical aspects. With the 75.000 MW Hydro Energy potency and only 8% has been already developed, there are lots of potential area to develop micro hydro power plant in Indonesia. According to the Hanafi & Riman' research (2015) titled "Life Cycle Assessment of a Mini Hydro Power Plant in Indonesia: A Case Study in Karai River. Published by Science Direct, there are six provinces that has been identified as the source of mini hydropower plants. There are Papua (12 GW), East broneo (6GW), South Sulawesi, West Borneo, North Sumatera, and Aceh. And those areas must have electricity in 2025 to support the government's economic and development programs in Indonesia. (AN, CBN)

Despite, Fathoni, et al. on its Journal titled "A Technical and Economic Potential of Solar Energy Application with Feed-in Tarieff Policy in Indonesia describe that:

"A review of solar energy potential in Indonesia based on the solar resource data is presented. Estimation of solar resource in Indonesia was done using solar radiation data from NASA Surface Meteorology and Solar Energy (SSE). Retscreen software was used for all of the calculation in the study. It is found that the proposed system can generate electricity annually vary from 0.46 GWh/year in Denpasar to 217 GW/year in Pontianak.

Fathoni, et al. therefore mention that as the tropical countries and lies in the equatorial line, daylight is abundant in Indonesia. With this advantages, therefore the government has decided to have a feed in tariff for solar energy as an incentive to grow the interest in developing solar energy in Indonesia. In accordance to this, the government has targetted the capacity installed from solar energy up to 0.87 GW by 2025.