Renewable Energy in Indonesia's Tourism Industry
Since you've known about how the government is aiming to make tourism to be one of the drivers for economic growth through 10 New Bali's initiative, you could think that tourism could be one of the opportunities when it comes to renewable energy. I would expose the current state of the utilisation of renewable resources in local tourism and how you could play an important role in the on-going development of the tourism industry.
Renewable resources in local tourism
According to Euromonitor International, the inbound foreign tourism to the Balinese capital of Denpasar alone is expected to grow until it hits 12.3 Million tourists by 2025. However, Bali currently consumes 1,320 MW of electricity, which one-third is supplied from Java and two-thirds of the energy comes from local fossil fuel energy sources. The government expects power plants on Java to supply an additional 350 MW to Bali by 2025 on top of the local renewable sources for meeting expected energy demand. With the estimation of the increase in electricity consumption to 2,000 MW, driven mainly by increased tourism, the government wants Bali to produce 350 MW of electricity from renewable energy sources over the next six years.
In fact, there has been plenty of talks recently around green initiatives and plans to drive Bali along a more sustainable path. It seems solid actions are being taken now to move this idea forward by means of the newly issued local government regulations. These regulations focus on clean energy development with five priority programmes, including power generation and use, the development of environmentally friendly transportation, and the development of the Polytechnic and the Center for Clean Energy Studies in the Regency of Bangli.
The first of these is Regulation Number 45/2019, aiming to fulfil Bali's energy needs using environmentally friendly and renewable energy sources. Bali's property sector would be benefitted from this regulation as the stressing on the need to develop zero energy buildings. These will be designed in what's being called a "tropical style" and in tune with traditional Balinese architecture using sunlight, environmentally friendly building materials, energy-efficient electrical devices, transportation and solar power roof systems. It will also cover the usage of water, treatment of wastewater and the process of recycling.
Initially, these regulations will target central and regional government buildings, as well as commercial, industrial, and household buildings with a floor area of more than 500-square meters. Solar-powered roof systems will also be installed in three years time frame, starting from 2021.
Larger industrial, commercial, and mall buildings, resorts with a land area of more than 3,000-square metres and 4-star (and above) hotels that use electricity sourced from clean energy will be entitled to a special green electricity tariff. Since local government is committed to reducing coal-based electricity supplies, electricity suppliers will also have to convert from coal and/or oil-fired power plants to clean energy power plants.
To achieve the target in utilising renewable sources, several stakeholders, including state-owned enterprises, private companies, and private sectors are required to enable the right technology are applied with the need of support from local communities to ensure long-term success. Some investors, such as Medco and Solar Phillippines, were involved in the first and to date to develop the largest solar power plants auctioned by the state-owned electricity company, PLN. The investment is valued around IDR 500 Billion and two plants are expected to be fully operated in Karangasem and Jembrana by 2021.
The other significant regulation is Government Regulation Number 48/2019, which focuses on the Use of Battery Based Electric Vehicles. The bill is focused on preserving Bali's natural environment, supporting government programmes for energy efficiency and reducing pollution in the field of transportation. It also paves the way for ensuring the readiness of the necessary infrastructure for electric vehicles in Bali.
Key to the success of this initiative is to use local content and providing incentives for owners and users of Battery-Based Electric Vehicles. Local government would develop special zones in the major tourist areas of Kuta, Sanur and Nusa Penida for electric vehicles with the full support of suitable infrastructure from PLN. Two companies, Gesit Motor (a private company) and Wijaya Karya (a state-owned enterprise) are invited to lead the way with an annual target of 30,000 units production. As with the clean energy regulation, the electric vehicle bill will be phased in, first targeting government agencies, regional management authorities and state-owned enterprises as well as those companies engaged in public transportation services.
Future Opportunities
In line with Indonesia's abundant sunshine and unique topography, solar energy could be one of the solutions to be able to generate 100% green electricity by 2050. To install enough PVs to meet the 2050 target, Indonesia needs at least 8,000 square kilometres or about 0.4% of the country’s land area. Eastern part of the country could be the right place to install based on the PV Power Potential WBG. Should problems with land acquisitions arise, the government could also install the solar panels on water. A large fraction of these panels can be placed on floats on lakes and sheltered seas. Additionally, most buildings can host solar panels on the roof. With these plans, the installation of solar panels will require only 0.1% of Indonesia’s land, according to The Conversation.
Source: The Conversation
With the 10 New Bali's initiative, Indonesia would be a potential market to develop eco-tourism industry with sustainable resources that could be explored from its abundant supply. Although the utilisation of renewable energy in Bali is currently still an on-going process with local government's efforts to provide adequate infrastructure, you could imagine how the use of renewable energy can offer you a promising future in years to come.
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