Jakarta (VNA) – Indonesian Ministry of Energyand Mineral ༺Resources and global technology provider Hitachi Energy have signeda letter of intent (LoI) on the development of green energy technology on June19 in Jakarta.

The LoI was signed by the ministry's Acting SecretaryGeneral Dadan Kusdiana and Hitachi Energy's Regional Head South Asia, N. Venu. In a statement, Dadan noted that the agreement aims toaccelerate energy transition in Indonesia. He remarked that the agreement between both partiesfocuses on knowledge transfer and joint studies for technology developmentsolutions, particularly in the field of electricity infrastructure. After witnessing the signing, Indonesian Minister of Energy andMineral Resources Arifin Tasrif stated that electricity demand in Indonesiais projected to reach 1,942 terawatt-hours (TWh) by 2060. To achieve this, Indonesia requires support in terms oftechnology, industry, and infrastructure from all stakeholders.

According to the minister, the biggest challenge inthe development of renewable energy-based electricity lies in powerinfrastructure, given Indonesia's archipelagic nature with different energysources on each island.

Therefore, the government has initiated a national super grid programme tointerconnect isl💃ands, particularly the larger islands in Indonesia.

Tasrif emphasised theneed for collaboration and cooperation with national and internationalstakeholders, including Hitachi Energy, to expedite the programme'simplementation.

He said that Hitachi Energy is one of the companies possessing the technologyand digital transformation capabilities necessary to accelerate the energytransition process.

Hitachi Energy CEO Claudio Facchin said that the company will support Indonesiain achieving its set targets, where accelerating energy transition plays acrucial role in achieving net zero emissions and addressing the climateemergency.

He added that the technical collaboration will focus on areas such as renewableenergy integration, interconnectors, power quality, grid edge technologies, anddigital solutions to address the complexities of supply and demand in the newelectricity landscape.

Hitachi Energy has been present in Indonesia since 1980, providing support forelectricity infrastructure in the country. The company has also been involvedin several energy transition projects in Indonesia, including the connection ofthe 220-megawatt (MW) Rantau Dedap geothermal power plant (PLTP) in SouthSumatra, which supplies carbon-free electricity to the Sumatra grid.

Another project involves the im🐓plementation of grid edge solutions in severalareas, including microgrids on Semau Island, Selayar, and Nusa Penida,c🌠ontributing to meeting 20% of the electricity demand./.