Renewable energy has become one of the key solutions for reducing dependence on fossil fuels while supporting energy security and economic growth.
This is because almost every human activity requires energy, from working and cooking to transportation and industrial operations.
However, much of this demand is still met by non-renewable energy sources, such as coal, oil, and natural gas, which take millions of years to form and produce greenhouse gas emissions when used.
For this reason, the transition toward cleaner energy sources is becoming increasingly urgent.
Across Asia, including Indonesia, renewable energy development is not only about reducing emissions but also about creating investment opportunities, generating jobs, and strengthening energy security.
What Is Renewable Energy?
Renewable energy is energy derived from natural resources that are replenished faster than they are consumed.
Solar and wind energy, for example, are continuously replenished by natural processes, making them suitable for long-term energy generation.
Unlike fossil fuels, which produce significant carbon emissions when burned, most renewable energy sources generate very low emissions or no direct emissions during operation.
Technological advancements have also made renewable energy increasingly competitive. The cost of clean energy generation continues to decline, while the sector creates new employment opportunities in manufacturing, installation, maintenance, research, and development.
Read Also: Why Indonesia's Energy Transition Cannot Be Delayed and What Are the Challenges?
Types of Renewable Energy
There are various types of renewable energy that can be utilized to meet energy needs at both household and industrial scales.
Each source has different characteristics, operating principles, and potential applications, allowing its utilization to be tailored to the conditions and needs of a particular region.
1. Hydropower
Hydropower plants harness the flow of rivers, dams, and reservoirs to drive turbines and generate electricity. Mini-hydropower plants can also be developed on a smaller scale.
Hydropower offers the advantage of a relatively stable electricity supply, allowing it to complement energy sources such as solar and wind, whose output depends on natural conditions.
2. Solar Energy
Solar energy harnesses sunlight to generate electricity. The most commonly used technology is solar photovoltaic (PV), which uses solar panels to convert sunlight into electrical energy.
Another technology is concentrating solar-thermal power (CSP), which uses mirrors to concentrate sunlight and generate heat for electricity production.
Indonesia has significant potential for solar energy development due to its tropical location and abundant sunlight.
3. Wind Energy
Wind energy harnesses the kinetic energy of moving air to drive turbines. This technology can be used for both small-scale applications and large-scale wind power generation.
Wind energy potential across several parts of Asia, including Indonesia, can contribute to energy diversification while reducing dependence on fossil fuels.
4. Geothermal Energy
Geothermal energy comes from heat within the Earth. Steam or heat from geothermal reservoirs can be utilized to drive turbines and generate electricity.
Indonesia is among the countries with significant geothermal potential because it is located along the Pacific Ring of Fire.
Developing geothermal energy can help provide a more stable and low-emission electricity supply.
5. Biomass
Biomass uses organic materials and their by-products to generate electricity, heat, and fuels such as biodiesel and ethanol.
These materials can come from agricultural waste, forestry residues, and other organic sources.
However, biomass utilization must be managed sustainably, as improper practices can generate emissions and contribute to land-use changes.
Benefits of Renewable Energy
The use of renewable energy not only helps reduce dependence on fossil fuels but also delivers various environmental, economic, and social benefits.
For this reason, clean energy development is becoming increasingly important as countries work toward building more sustainable energy systems.
Environmental Benefits
Renewable energy can help reduce greenhouse gas emissions because most renewable sources produce no direct emissions during electricity generation.
The transition away from coal, oil, and gas can also help reduce air, water, and soil pollution while conserving finite natural resources.
Economic and Social Benefits
Renewable energy also provides benefits beyond environmental protection.
The growth of this sector can create jobs in installation, maintenance, manufacturing, research, and technology development.
Diversifying energy sources also strengthens a country's energy security and reduces risks associated with fossil fuel price fluctuations.
In rural areas, solar, wind, hydropower, and biomass projects can also support infrastructure development and local economic activities.
The Role of Renewable Energy Investment in Indonesia and Southeast Asia
Renewable energy development requires substantial investment and long-term planning.
Fabby Tumiwa, CEO of the Institute for Essential Services Reform (IESR), emphasizes the importance of smart and well-planned investment, including developing a domestic renewable energy industry so that Indonesia does not rely solely on imported technologies.
The experiences of other Asian countries also highlight the importance of supportive policies.
Vietnam, for example, successfully expanded its solar energy capacity rapidly through incentives and improved access to the electricity grid.
This experience can provide valuable lessons for Indonesia in developing policies that support clean energy expansion.
The energy transition must also consider its social and economic impacts, particularly on sectors that have traditionally depended on fossil fuels.
Therefore, a carefully planned strategy is needed to ensure that the transition toward clean energy does not lead to economic disruption.
Read Also: Regenerative Economy and the Future of Indonesia's Green Economy
TBS's Renewable Energy Project Expansion
TBS is also demonstrating its commitment to clean energy through the development of various renewable energy projects.
In 2020, through PT Toba Bara Energi (TBAE), TBS acquired PT Adimitra Energi Hidro (AEH), the developer of the 2 × 3 MW Sumberjaya Mini-Hydropower Plant in Lampung.
The project reached its Commercial Operation Date (COD) on January 22, 2025, contributing 6 MW of clean energy to the Southern Sumatra region.
In the same year, TBAE also acquired PT Bayu Alam Sejahtera (BAS), which was exploring wind energy potential in East Nusa Tenggara (NTT).
The development of hydropower and exploration of wind energy have strengthened the diversification of TBS's clean energy portfolio.
In addition, TBS is developing the Tembesi Floating Solar Power Plant in Batam. The project has a capacity of 46 MWp and is currently under construction.
The project reached financial close in 2024, while full commercial operations and connection to the national electricity grid are targeted for 2026.
The Tembesi Floating Solar Power Plant is expected to deliver benefits including reduced carbon emissions, improved air quality, green job creation, technology transfer, and collaboration with local communities.
Together with the Lampung Mini-Hydropower Plant, which has reached its Commercial Operation Date, this project forms part of TBS's efforts to expand its clean energy generation portfolio.
Through the development of the operational 6 MW mini-hydropower plant in Lampung and the 46 MWp Tembesi Floating Solar Power Plant under construction, TBS continues to demonstrate its contribution to Indonesia's energy transition.
