Key Takeaways
- The industrial sector is one of the sectors where energy consumption continues to rise alongside business growth, making it necessary to pursue a more sustainable energy transition.
- There are several important reasons behind the shift to renewable energy, ranging from reducing dependence on fossil fuels to enhancing a company’s reputation.
- Chandra Daya Investasi, together with Krakatau Chandra Energi, is ready to serve as a partner in the renewable energy transition for industries in Indonesia and Southeast Asia.
As time goes on and technology advances, the industrial sector continues to grow, leading to an increase in its energy needs. The problem is that massive energy consumption in the industrial sector is one of the major contributors to global carbon emissions. That is why the industry must pursue an energy transition to cleaner energy sources.
This article discusses the importance of the energy transition in Indonesia and renewable energy solutions for the industrial sector. Read the full information below to learn more.
Why Does the Industry Need to Switch to Renewable Energy?
The energy transition in Indonesia can be achieved through various efforts, one of which is the industrial sector’s shift to renewable energy. This is because 40% of Indonesia’s final energy consumption comes from the industrial sector, according to the International Energy Agency (IEA). Furthermore, Statista notes that the industrial and transportation sectors accounted for the highest electricity consumption in Indonesia in 2023.
Beyond the facts, why does the industry need to switch to renewable energy? Here are some of the benefits:
1. Reducing Dependence on Fossil Fuels
Most of the energy consumed by the industrial sector comes from non-renewable sources, such as coal, petroleum, and natural gas. Unfortunately, non-renewable energy sources require a long time and sufficient resources to be replenished. Meanwhile, energy consumption continues unabated without waiting for these resources to be replenished.
By switching to renewable energy, the industry can utilize readily available and renewable energy sources, such as solar, wind, and hydro power. As a result, the energy supply remains stable and reduces dependence on non-renewable energy.
2. Creating an Eco-Friendly Work Environment
Another benefit of renewable energy is creating an eco-friendly work environment. Currently, many companies have set net-zero emissions as one of their sustainability goals.
One approach is to utilize low-carbon energy sources, such as solar panels, wind turbines, and so on. This creates a low-emission environment and helps companies fulfill their environmental responsibilities.
Read also: Potential Renewable Energy in Indonesia You Need to Know
3. Promoting Technological Innovation
As technology and globalization advance, industries must keep pace with these developments to achieve more efficient operational processes. This includes renewable energy technologies, which are more affordable and sustainable.
The transition to renewable energy infrastructure also drives innovation in clean energy technologies so they can be utilized across many sectors and become more scalable.
4. Complying with Regulations
Renewable energy also helps the industrial sector comply with existing regulations. In Indonesia, several policies have been established regarding renewable energy, such as those from the Ministry of Energy and Mineral Resources on renewable energy sources for electricity supply.
5. Enhancing Corporate Reputation
Companies can strengthen their reputation as responsible entities or businesses that care about sustainability. This is important for complying with applicable regulations and improving their image among investors and customers.
You may also like: 6 Types of Alternative Energy Sources for the Future
Industrial Renewable Energy Solutions from Chandra Daya Investasi
PT Chandra Daya Investasi Tbk (CDI Group) offers industrial renewable energy solutions through its power solutions, operated by its subsidiary, PT Krakatau Chandra Energi (KCE). So, why should you choose CDI Group as #YourGrowthPartner?
- Providing infrastructure in rapidly growing regions, specifically in Southeast Asia, a region with the fastest-growing demand for infrastructure.
- Optimizing assets and driving growth through the expansion of operational capacity and asset acquisitions.
- CDI Group’s assets are supported by long-term contracts with trusted partners, ensuring stable cash flow and improved margins.
- Collaborating with trusted partners, such as Krakatau Steel Group, Salim Group, SCG Group, and many more.
CDI Group, through KCE, provides renewable energy services with a solar power capacity set to grow to 11 MWp by 2025. KCE offers four types of solar panel installations: on-grid, on-grid with a battery backup system, off-grid, and hybrid.
KCE not only provides solar panel installation services but also energy audits, operation and maintenance (O&M), solar panel leasing, cost-benefit analysis, and many more.
Recently, KCE has served more than 200 industrial, business, and government customers, as well as more than 1,500 residential customers for its power solutions.
Those are some insights into the importance of the energy transition in industry and in Indonesia. To protect the Earth, greater efforts are needed to reduce carbon emissions from energy infrastructure. Therefore, let’s switch to renewable energy starting now! Consult your company’s energy needs with CDI Group and KCE!
Also worth reading: What Is Sustainable Energy? Learn About Its Many Benefits!
Frequently Asked Questions (FAQ)
The following are frequently asked questions regarding the energy transition in Indonesia and the industry:
1. Why Is Renewable Energy More Environmentally Friendly?
Renewable energy is more environmentally friendly because it produces little or no air pollution. Furthermore, renewable energy is naturally replenished, providing an abundant supply.
2. How Is Renewable Energy Being Implemented in Indonesia?
Indonesia has significant renewable energy potential, estimated at around 3,000 GW. However, the utilization of new and renewable energy (EBT) in Indonesia is projected to reach only 16 GW by 2026, meaning that there is still room for future infrastructure development and investment.
3. Why Is Renewable Energy Important as a Solution to the Energy Crisis?
Renewable energy systems can be installed anywhere. For example, solar panels can be installed on rooftops, roads, and other locations. Furthermore, renewable energy is relatively more affordable than non-renewable energy because it is generated naturally.