Representing the Coordinating Ministry for Economic Affairs, Eko Wahyu Purnomo said North Sumatra has abundant potential for the development of geothermal and solar PV. This makes the province a potential model for the implementation of energy transition in Indonesia.

He stressed that the energy transition must be carried out inclusively and fairly, and must bring real benefits to all communities in North Sumatra.

“Energy transition should open opportunities and have direct impacts on communities. Every input from this forum will enrich the drafting of CIPP 2025 as well as strengthen the national energy transition agenda,” Purnomo said.

During the forum, Yolan Erlanda, Perusahaan Listrik Negara (PLN) North Sumatra’s Social Safeguard Manager, provided a general overview of the electricity sector and updates on renewable energy projects in the province.

According to Yolan, electricity demand in the province is growing at 6.93% per year, higher than the 6.56% stated in the Electricity Supply Plan (RUPTL). Economic and investment activities, such as the development of data centers, are driving the higher growth in demand.

Two key projects in North Sumatra currently being developed by PLN are the Kumbih and Sumatera Pumped Storage hydropower plants.

The Kumbih hydropower plant, designed to generate 45 megawatts (MW), is being developed using a soft loan from Germany’s development bank, Kreditanstalt für Wiederaufbau (KfW). The plant, located on the border of Aceh and North Sumatra, is under construction and is expected to start commercial operation in 2026.

Meanwhile, the Sumatera Pumped Storage hydropower plant in Simalungun Regency is still in the feasibility study stage, with a target commercial operation date of 2033. The plant is designed to store electricity produced by solar power plants (solar PV) and stabilize the province’s electricity system.

“Both projects are being developed with a just transition approach, which takes into account benefits for surrounding communities and sustainability,” Yolan said.

Several issues that constrain energy transition and renewable energy development in the province were also discussed during the forum. Key issues include limited provincial government funding, a lack of trained human resources, overlapping authority between central and regional governments, challenges in land acquisition, and the high cost of developing renewable energy.

The participants also discussed lessons learned from ongoing projects, particularly the limited public participation during the planning stage. This often leads to social and environmental issues once the project becomes operational.

To address these challenges, the forum concluded that communities living around project areas must be involved from the earliest planning phase. An effective grievance mechanism, sustainable participatory monitoring, and long-term information transparency are essential to minimise conflicts and optimise the benefits of renewable energy projects.

Communities should be regarded as “social shareholders” by ensuring sustainable economic empowerment, inclusion of vulnerable groups, adequate work insurance, and the use of publicly accessible video documentation to strengthen accountability.