Covid-19 pandemic has drawn focus on sustainability issues and economic recovery. How to use this recovery plan to accelerate the low carbon energy transition?
Energy transitions are happening around the world, mainly driven by solar energy and wind. In many countries around the world, it is cheaper already today to build a new solar PV or wind plant than building new thermal power plants. And it will not be long until it will even be cheaper building new wind and solar PV than utilizing existing gas and coal-fired power plants, according to Bloomberg New Energy Finance (BNEF). According to the International Energy Agency (IEA), investments in renewable energy sources have been outscoring those for conventional resources for several years in a row.
In India, around 38 GWp solar energy capacity was installed until June 2020 from only 161 MW by 2010, making India one of the frontrunners in developing solar energy in the world (economic times. India, 2020). Meanwhile for wind energy, Denmark, as the early adopter, is still leading in wind energy utilization with approximately 50% of Denmark’s electricity consumption in 2020 to be supplied by wind power (Danish Energy Agency, 2020).
In Indonesia, this concept of energy transition has gained more popularity among the policymakers and the public during these two years. However, based on IESR’s ICEO 2020, renewables capacity until the end of 2019 only reached slightly over 10 GW with generation shares at around 12.2%. Renewables investment is also stagnant and all renewables targets in RPJMN or RUEN for 2019 have also been missed.
Now, Covid-19 pandemic has hit the global economy badly, and Indonesia is not an exception. So far, through Government Regulation No. 23/2020, the government has allocated Rp 318 trillion as an economic stimulus to create growth. However, this stimulus, unfortunately, is still not directed to rebuild the Indonesian economy towards a low carbon economy.
As we recover from the Covid-19 pandemic, it is essential that we build back better. Having a green economic recovery agenda will help Indonesia build a resilient and sustainable economy while accelerating the energy transition in Indonesia to reach a 23 percent share of renewable energy in the primary energy mix by 2025. Therefore, Indonesia, as one of the emerging economies, needs to structure recovery packages wisely and be innovative in attracting capital from different sources. Indonesia also needs to enhance its investment framework for renewables to attract a higher level of private capital to help support sustainable economic recovery in Indonesia.
If fossil fuels are no longer viable energy sources, how do we ensure the sustainability of power on earth?
These are 5 Ways to Make You Become A Part of The Energy Transition Generation
Today, you might feel that it’s okay to use fossil energy. Why are we bother shifting to renewable energy? After all, our lives are seemingly safe and sound. If you feel hot and humid, by a single press of a button, you turn on the air conditioner. When it’s dark, you put the light on. Or, if you wake up late and need to go to campus, all you have to do is roll the throttle, then the motorbike drives straight to your destination.
However, have we ever imagined when our current non-renewable energy fuels all the technologies to make our lives easier, is prohibited because it is increasingly expensive and worsens the earth’s climate? Moreover, its inherent impacts, such as increasing greenhouse gases, led to the climate crisis, which caused disasters for human life. Extreme weather, new diseases, floods, drought, and famine will follow.
Know that the world is moving towards that stage. If there is no actual action from the government and ourselves, then that will be the picture of our future, Indonesia. So what can we do to anticipate it? Here are 5 (five) ways you can apply in your daily life.
1. Start familiarizing yourself with the energy transition issue and echo it for the government to set a rapid act in formulating an accurate strategy of renewable energy development!
Even though in the future, fossil fuels (coal, oil, and gas) are no longer popular because the world is focusing on energy transition, it does not mean that your life will shift back to prehistoric times. Indonesia has great potential in energy that can displace the existence of fossil energy. This energy is known as renewable energy, such as water, wind, solar, and bioenergy.
Araújo (2014) defines energy transition as a process of transformation in the supply of energy based on fossil fuels towards a more efficient, low-carbon, and sustainable energy system with renewable energy. The energy transition is driving the achievement of global climate change mitigation goals in limiting global warming in scenario 1, 5-2°C by 2050.
Perversely, according to Agus Praditya Tampubolon, a researcher at the Institute for Essential Services Reform (IESR) who is also the author of a study report entitled National Energy Plan (Rencana Umum Energy Nasional-RUEN): Existing Plan, Current Policies Implication and Energy Transition Scenario, in the National Energy General Plan (RUEN) ) which the government has compiled, the target for developing renewable energy is small, 23 percent in 2025, meaning that the rest of generation power still uses fossil energy. Until 2020, the target achievement is still only 15 percent. If compared to India, which has a target of 42 percent renewable energy by 2022, and it has already achieved 18 percent, Indonesia is far left behind. To catch up with another country’s progress, let us encourage policymakers and various parties to sit together to reformulate the RUEN to a more massive portion of renewable energy, including strategies to achieve it.
2. Make walking, cycling, getting on the train, bus, or other public transportation activities as modern lifestyle
Besides participating in reducing carbon use, this lifestyle is also a method to get used to before oil-fueled vehicles stop operating. How so? Of course, this is possible. Considering the Paris Agreement contained an agreement that in 2035-2040, there should no longer sell the conventional, fuel-based vehicles, instead switch to more environmentally-friendly electric transportation.
The background is economic development in line with the rising need for transportation. In Indonesia, 90 percent of vehicles in Indonesia use fuel oil, which contributes to an increase in greenhouse emissions that are harmful to human life.
Julius Christian Adiatma, a researcher at IESR and author of the second series of five series of study reports on the Indonesian Energy Transition Roadmap, entitled A Transition Towards Low Carbon Transport in Indonesia: A Technological Perspective, emphasizes that if the government does not do something to overcome it, for instance by (again -again) preparing a holistic energy transition strategy, such as providing environmentally friendly patterns of transportation of goods and people, development of electric vehicles, biofuels, and other supporting regulations, there will be immense economic losses due to an inadequately planned distribution system. Could you imagine how many couriers will be exhausted from delivering your ordered items on foot, in the middle of a rain or in a heat of a sunny day?
3. Think carefully about your future career. Green Jobs is the future Industry!
If you watch developments in the international world with the energy transition trend, one of the most affected fossil energy industries is coal mining.
Deon Arinaldo, a researcher at IESR who is also the author of the Energy Transition in Power Sector and the Implication to Coal Industry study report, explained that coal exporting countries from Indonesia such as China are considering limiting the use of coal because it produces air pollution, as well as to protect its domestic coal. Meanwhile, Indonesia is one of the biggest coal exporting countries. Indonesia’s coal reserves amount to 26.2 billion tonnes.
Imagine if the government did not see this trend and negligently prepared preventative measures before coal mining closed along with the emergence of various innovations and technologies in the field of renewable energy. Hundreds of thousands of people will lose their incomes. Don’t be one of them!
4. Start to consider building your future dream house using renewable energy and adapting to climate change
The IESR study in 2019 shows that a system that uses 43% renewable energy will reduce operating costs and investment (system) ten years lower than the fossil fuel-based systems stipulated in the 2018 Electricity Supply Business Plan (Rencana Usaha Penyediaan Tenaga Listrik-RUPTL). Indeed, all renewable energy consumers will experience it, both in the industrial and household sectors.
You can also be part of this energy transition and climate change adaptation by paying attention to the construction of your dream home. So, start designing a disaster-safe house construction, for example, preparing a sufficient water storage area in case of a prolonged dry season. Build a strong roof to withstand heavy rain. Prepare a rubber boat if at any time your house is flooded. Most importantly, choose energy-efficient electronic equipment, such as a roof with the ability to reflect light, so you don’t have to turn on the lamp all day long, and install solar panels to meet electricity needs in the house. Lastly, well, living with your small future family will be fun too.
5. Eat more vegetable protein than meats
Indeed, agricultural and livestock practices do not require much energy compared to other sectors. However, this sector emits lots of greenhouse gases coming from livestock manure. FAO noted that livestock produces 14.5 percent of greenhouse gases, especially in cattle farming. Poore and Nemece calculated 50-grams of beef produced 17.7 kgs of carbon dioxide, chicken farms released 2.9 kgs of carbon dioxide for the production of 50-grams of chicken meat.
You can start by reducing your beef/meat consumption and replace it with chicken, or, the better, switch to vegetable protein, such as from nuts.
Undeniably, we need the government to think about this as well when preparing a distinct strategy for dealing with the energy transition. Thus, it will shape the standard of environmentally friendly agriculture and livestock industry.
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EU Climate Diplomacy Week: Green Recovery in Post COVID-19 Era
Jakarta, 2 November 2020 — The COVID-19 pandemic brings significant shocks to the world economy and energy. The implementation of lockdown and large-scale social restrictions in a certain period of time has resulted in many industries going out of business and millions of people losing their jobs. The IMF predicts that the global economy will contract 4.4% this year before it is expected to recover positively again next year or post COVID19.
The shock from a pandemic leads to reduced emissions globally. The result is a sudden 8.8% reduction in global CO2 emissions in the first half of 2020. Although it seems in line with the Paris Agreement to reduce greenhouse gas emissions to prevent the earth’s temperature from rising above 2 degrees Celsius, this would not be the case if it is not immediately responded with the right policy. This is a good opportunity for every country in the world to immediately take strategic policies to restore their economy while at the same time making an energy transition by leaving fossil energy to renewable energy.
Joining the EU to celebrate the Climate Diplomacy Week series, Institute for Essential Services Reform (IESR) conducted a webinar on Post-COVID-19 Green Recovery. Speaking at the event was Fabby Tumiwa, Executive Director of IESR, Thomas Capral Henriksen, Head of Energy Cooperation at the Embassy of Denmark to Indonesia, Lidia Wojtal, Project Leader, Agora Energiewende, Catrina Laura Godinho, Project Coordinator, Climate Transparency and Lourdes Sanchez, Leader and Senior Policy Advisor, International Institute for Sustainable Development (IISD) and responding was Ridha Yasser, Deputy Director of Energy Program and Investment, Directorate of Energy, Coordinating Ministry for Maritime Affairs and Investment.
“Globally, data from the International Energy Agency (IEA) notes that demand for oil has decreased by 9%, while coal has also fallen by 6%. Indonesia itself has experienced a decline in coal exports reaching 11% by August this year, compared to last year. This equates to a loss in income of $ 2.2 billion. The demand for coal in the Indonesian market fell by 20%. On the bright side, the decline in demand for fossil fuels is actually an opportunity to accelerate the energy transition, if the country views it like that, “said Fabby Tumiwa opening the activity.
Fabby explained the fact that in 2018, Indonesia through President Joko Widodo had signed the Solidarity and Just Transition or Silesia Declaration. This declaration is an urge for Indonesia to undertake a low-carbon energy transition and economic transformation that is resilient to climate change in order to achieve sustainable development based on a “just transition”.
“The spirit and characteristics of this declaration must be integrated into Indonesia’s economy and post-pandemic development strategy. For example, the government needs to ensure that provinces who depend on coal for their revenues should have new revenue streams and job creation alternative economic activities that replace the extractive sector that is losing its charm. Unfortunately, we don’t have much time. The energy transition must start now, considering that coal exports continue to experience a sharp decline, “said Fabby.
IESR believes that by 2030, Rooftop Solar, both its power generator and battery storage, will be cheaper to build and run than Coal power plants.
“IESR believes that the moratorium on coal-based power plants should be a serious consideration by Indonesia’s electricity and utility planners to avoid stranded assets that will burden taxpayers in the country going forward. The decisions we make today will determine our future and our record in history, “explained Fabby.
On the other hand, Thomas claims that the European Union is very ambitious to meet the targets of the Paris Agreement. One of the mechanisms listed in the EU Green Deal is to ensure an equitable energy transition and to mobilize an investment of 1 trillion euros in renewable energy over the next 10 years.
“In Denmark, we haven’t decided on a new policy related to COVID-19 and energy. However, the Danish energy policy was quite ambitious in 2018. Currently, 50 percent of Denmark’s energy comes from wind power. We are targeting that by 2030, Denmark will already use 100 percent renewable energy. In 2050, Denmark will be free from fossil energy, “said Thomas.
Although 50 percent still rely on Windpower, Thomas guarantees that the security level of the electricity supply is close to one hundred percent. This is proven by the low level of electricity disruption of fewer than 20 minutes for the average electricity consumption every year.
The oil crisis and the high price of coal made Denmark begin to make an energy transition around 1979 or 1980. However, the development of renewable energy has been running rapidly over the last ten years.
“Green energy is very resilient to changing circumstances and fluctuations in fossil fuel prices. Not only that, investment in renewable energy will open up more jobs, considering that currently, many investors refuse to invest in coal mining,” he said.
He also points out that in 1990, since there was a 40 percent reduction in emissions there was a 60 percent increase in GDP in the Danish economy.
“This proves that economic growth will increase in line with the high ambition to reduce emissions,” concluded Thomas.
Lidia Wotjal said that positive developments in the field of renewable energy are also happening in Poland.
“In 2006, Poland relied on 90 percent of its electricity supply from coal. However, in 2018 coal use decreased to 78 percent and in 2019 it only became 73.6 percent,” she said.
She believes that this change is an implication of the European Union’s policy which requires reducing carbon emissions. Even though until now there are still coal mining activities, this industry has reduced the efficiency of coal costs as its Coal Power plants facilities age.
“The awareness to make an energy transition actually comes from energy producers and consumers. The need for clean air is a triggering factor for switching energy. Perhaps this is a shocking fact for other countries, but in Poland, as many as 50 percent of households use coal which results in dense air pollution in both urban and rural areas, ”said Lidia.
Seeing this problem, the Polish government decided to encourage the modernization of geothermal energy and subsidize the installation of photovoltaic (PV) two years ago. The community immediately responded to this very well. As a result, there was a two-fold increase in PV installations in just one year.
The Polish Government observed that the movement of investment will dominate renewable energy so that in September 2019, the Minister for Climate in Poland submitted a draft of energy strategy by targeting 11 percent of coal in the energy mix in 2040.
Only 3 Percent of Economic Recovery Package for Post COVID-19 Targeting the Renewable Energy Recovery
Wondering how the economic conditions after COVID-19, especially in the G20 countries, Catrina Laura Godinho observes that the economic recovery package still focuses on fossil energy.
“The government should be able to use the COVID-19 pandemic to adjust its policies so that government spending is not only for immediate recovery response but also for long-term recovery. A recovery with concern to clean energy will be a good opportunity to ensure a healthy economy and increased employment, ”said Catrina.
“COVID-19 must be a trigger for the G20 countries to be more ambitious with their greenhouse emission reduction strategies, especially because these G20 countries produce more than two to three-quarters of the world’s greenhouse gas emissions.”
According to Catrina, the domino effect of setting a zero-emission target in 2050 is starting to be felt. Starting from several countries such as Japan, Canada, and China that have set policies to achieve these targets.
“It is also important for the G20 countries to update their Nationally Determined Contribution (NDC) to comply with the Paris agreement so that we can see the sectoral targets until 2030. Because long-term ambition will also be meaningless if it is not accompanied by short-term decisions,” she said.
Lourdes Sanchez, whose organization focuses on monitoring the flow of public money in the energy sector, found that out of 7 million dollars in Indonesia’s recovery funds, only 3 percent was devoted to renewable energy, 97 percent of which went to SOEs.
“Because this is public money, the government should channel it by providing conditions. Thus, sustainable development in the field of renewable energy can take place. For example, the government provides assistance to PLN, the government must also ask for PLN’s commitment to developing Rooftop solar, ” she said.
Responding to the explanation from the speakers, Ridha Yasser revealed that making an energy transition in Indonesia is not an easy decision. He sees that many overlapping regulations in Indonesia make an investment in renewable energy difficult. The government’s policies, which always change along with the presidents or ministers replacement, make it natural that the development of renewable energy in Indonesia is not as fast as in other countries.
“Indonesia has good potential in renewable energy. But nowadays, many people use fossil energy. However, there are opportunities for the development of renewable energy which functions to back up fossil energy, “said Ridha.
Ridha thought that if the projected renewable energy shone in other countries in the world, especially in the European Union, his party would encourage similar investment in Indonesia.
“In my opinion, we have to follow where the money goes. If now investment is inclined towards renewable energy, the government must turn its head from fossil energy to green energy, renewable energy, “said Rida.
Responding to this, Thomas encouraged Indonesia to implement attractive policies, for example by opening an auction for international investors to participate in renewable energy development in Indonesia.
Reviewing the National Energy Plan 2017, is it still relevant in the energy transition era?
Jakarta, Tuesday, September 28, 2020 – “Climate change is becoming a real threat, and escalates quickly, with the rapid technological developments, especially in the field of renewable energy technology, is an important factor for countries in the world starting their energy transition,” explained Fabby Tumiwa, Director of the Institute for Essential. Services Reform(IESR) during the opening of the online launch of the Indonesian Energy Transition Roadmap Study Series report. Participating at the event as a panelist, Sugeng Mujiyanto, Head of the Bureau of Energy Policy Facilitation and National Energy Council Trial (DEN) and Saleh Abdurrahman, Expert Staff for Environment and Spatial Planning, Secretariat General of the Ministry of Energy and Mineral Resources.
“The use of renewable energy, which has become a priority for the development and utilization of national energy in the National Energy Policy (KEN), has not been reflected in the achievement of the National Energy General Plan (RUEN) until 2020. Apart from ambitious targets, several indicators and assumptions used to model the supply and demand energy in RUEN were built based on data and information in 2015. In fact, in the last five years, indicators and assumptions from socio-economic, techno-economic experiencing significant development, “he said.
This becomes the background for IESR to conduct further studies summarized in the Study Series Report on the Roadmap for Indonesia’s Energy Transition. The aim is to encourage Indonesia to be more prepared, not left behind, so many sectors such as economic, social, and even environmental fields do not have to suffer in the long run.
This report contains five thematic studies on the road map for Indonesia’s energy transition, which begins with National Energy Plan (RUEN): Existing Plan, Current Policies Implication, and Energy Transition Scenario written by Agus Praditya Tampubolon.
Agus reviewed the 2017’s RUEN through three scenarios (realization scenario, current policy, and energy transition) to evaluate and project the initial RUEN targets’ achievements.
“The 2017 RUEN uses 2000-2015 data to project 2016-2050 data. The findings are in the realization scenario; it turns out that primary energy consumption is lower than RUEN. The electricity consumption is also smaller, RUEN targets 2500 KWh per capita in 2025, while what will happen is only 1582 kWh per capita, “Agus explained.
Agus continued that with this pattern, RUEN’s renewable energy target of 45.2 GW in 2025 would not be achieved, but only 22.65 GW instead.
He combines several policies, such as identifying city networks, electric vehicles, and biodiesel, to project RUEN targets in the latest policy scenario. As a result, RUEN’s primary energy mix in 2025, which was initially 15%, increased to 18%.
“And in 2050, the increase will be even more drastic, not 23% but 40.3%. This is far from the target scenario RUEN and the projection target of the realization scenario, “he said.
Furthermore, Agus explained that he uses the parameter of limiting the construction of coal-fired power plants in the energy transition scenario. As a result, the share of renewable energy in RUEN’s prime energy mix is 18%, increasing to 20% in 2025.
“There will be an increase around 66-69%, by the year 2050,” he explained.
Starting from the findings he dissected, IESR recommended three crucial points for the government. First, reviewing the parameters and assumptions of RUEN 2015-2050. Second, increasing the share of renewable energy in line with reducing fossil energy. One of the ways is by reducing coal power plants. Third, propose a study on developing alternative scenarios in the national energy supply plan that integrates a larger portion of renewable energy.
Responding to the IESR reports and recommendations results, Sugeng thought that although his party always reviewed the RUEN every year, a re-review of the RUEN would be carried out if there were urgent conditions.
“For example, we saw on TV recently, as a result of COVID-19, the President Director of Pertamina stated that the demand for fuel decreased by around 25-26%. This is significant. If this happens continuously, we must also examine (RUEN), “he explained.
Meanwhile, Saleh said he was interested in IESR’s recommendations regarding alternative energy transition scenarios.
“The IESR energy transition scenario is undoubtedly a useful input. We don’t want to depend on fossil energy all the time, so I think there is still enough time to prepare. I want IESR to continue to enrich us in our ways so that the energy transition can also produce a sustainable economic transition with higher added value, “he said.
One Year Reflection of Central Java Solar ProvinceSolar
Klaten, 6 October 2020 – A year since the declaration of Central Java Solar Province (the pioneer province in Indonesia utilizing solar energy in their energy mix) on 17 September 2019 by the Ministry of Energy and Mineral Resources (MEMR) of Central Java Province, in collaboration with the Institute of Essential Services Reform (IESR) and supported by the Indonesian Solar Energy Association (AESI), the development of the use of rooftop Solar Power Plants in Central Java is increasing.
Central Java Province itself has the potential for solar energy radiation of 4.05 kWh/kWp per day, slightly above Indonesia’s average (3.75 kWh / kWp). The installation of rooftops solar can help the Central Java Provincial Government achieve the renewable energy mix target in the 2020 Regional Energy Plan (RUED) of 11.60%.
The initiation of Central Java Solar Province is in line with PT Tirta Investama (Danone-AQUA) efforts to use renewable energy electricity. On October 6, 2020, Danone AQUA inaugurated its Solar Roof installation of 2.9 MWp at its factory in Klaten. The Solar Roof installed at the AQUA factory in Klaten consists of 8,340 modules solar panels in four roof buildings covering an area of 16,550m2. This power plant can generate energy for 2500 housing units with an installed power of 900 VA.
As part of RE100, the Danone group is globally committed to using 100% renewable energy for its operations by 2030. The roof-top PV installation is part of meeting this target. With the inauguration in Klaten, until 2020, Danone-AQUA has operated 5.67 MWp PLTS in its four factories.
To install PLTS Roof, PT Tirta Investama is collaborating with Total Solar. Total Solar itself was originally an oil and gas company from France. The company is starting to switch to diversification to develop renewable energy. Total Solar has installed PLTS in three AQUA factories in the Java region.
Fabby Tumiwa, Director of IESR, the respondent at this launch event, appreciated PT Tirta Investama’s steps in utilizing renewable energy that can reduce Greenhouse Gas (GHG) Emissions, according to Indonesia’s commitment (NDC) to achieving the Paris Agreement target. The Rooftop solar also contributes to Central Java’s commitment to realizing the Central Java Solar Province program.
He also highlighted the involvement of Total Solar as a multinational company initially involved in the oil and gas sector, which is currently switching to the renewable energy sector.
“The investment in Rooftop solar by Danone-AQUA is an interesting phenomenon because it brings together two multinational companies that work together to encourage the global energy transition to ensure that global temperature increases do not exceed 2 degrees,” he explained.
According to Fabby, the energy transition is necessary to see that many industrial players have set targets to use clean electricity through the use of renewable energy technology.
Fabby also reiterates if PT Tirta Investama’s investment shows that solar technology has now become more affordable, and the price of electricity is competitive. Following the fact that the cost of modules has fallen 90 percent in the last decade, the price of electricity from solar PV is getting cheaper and can match fossil plants such as PLTU. The widespread use of Rooftop solar also shows that intermittent renewable energy is not an insurmountable obstacle. This debunked the myth that has been circulating so far that PLTS is not reliable and expensive.
Questioning the government’s target for a 23 percent renewable energy mix by 2025, Harris Yahya, Director of EBTKE, Ministry of Energy and Mineral Resources, explained that there is still a large gap between targets and planning must be addressed immediately.
“Currently, our projection is still at 15 percent from 23 percent,” he said.
Harris explained that the government had taken several actions to meet the target of the 8 percent difference.
“The government has issued a Ministerial Regulation (Permen) number 49 of 2018, which has undergone improvements to Permen number 13 of 2019 and number 16 of 2019. This effort is to make Rooftop solar more attractive in the home industry and in all commercial buildings. , “He added.
Ganjar Pranowo, Governor of Central Java, praised the industry’s steps for implementing environmentally friendly energy. Ganjar emphasized the importance of behavior transformation in entering this energy transition era.
“There are solar-powered lights for street lighting that broken because they are not maintained, or the battery is missing. Maintenance funds from the central government are not available, but local governments can do something like this. Therefore, it is necessary to have an umbrella of cooperation between government agencies, training to maintain it and the great involvement of various parties so that the technology can be used sustainably, “he said.
Ganjar believes that Indonesia can move forward in the Rooftop solar sector because of the availability of the basic material for making solar cells. Therefore, Indonesia needs to build a solar cell industry and other supporters.
“In collaboration with universities in Indonesia, we can certainly make battery technology (Rooftop solar) so that it can be mass-produced for households,” concluded Ganjar (US, FT).
Event Report: A Transition Toward Low Carbon Transportation
Jakarta, Tuesday, October 6, 2020 – With economic development, transportation has become a necessity that is inseparable from our everyday life. If its carbon wastes have not been handled carefully by the government and various parties, the earth’s temperature will be compromised, which endangers human life. It also means that Indonesia will fail to meet its promise in the Paris Agreement with zero emissions by 2050. This urgency was discussed by the Institute for Essential Services Reform (IESR) in the launch of its second series of five reports on the Indonesian Energy Transition Roadmap entitled A Transition Towards Low Carbon Transport in Indonesia: A Technological Perspective. Conducted online this event was attended by Firdaus Komarno, Head of the Center for Sustainable Transportation Management of the Ministry of Transportation, and Faela Sufa, Southeast Asia Director of the Institute for Transportation & Development Policy (ITDP), to respond to the findings and recommendations of the report written by Julius Christian Adiatma.
Julius explained that as the largest fuel consumers, transportation contributed around 150 million tons of greenhouse gas (GHG) in 2017. If the energy consumption pattern remains the same, in 2050, it will produce 500 tons of carbon emissions. He offers three approaches to reduce the use of fossil fuels and mitigate the impact of the energy transition in the transportation sector, namely Avoid, Shift, and Improve (ASI).
“The Avoid approach means that as much as possible, we reduce the number of trips and the number of transportation needs through better urban planning. Meanwhile, the Shift is shifting to a mode of transportation that is more energy-efficient or less carbon-intensive. Improving means increasing the efficiency of the vehicle or the carbon intensity of the vehicles,” he explained.
Discussing energy-efficient modes of transportation, Julius suggested the development of light vehicle electrification. However, this requires careful planning by taking into account the electrical system in Indonesia, which still uses coal, and the lack of supporting infrastructure such as electric vehicle chargers.
“The point is, whether we like it or not, the energy transition is inevitable. Of course, it causes some side effects, for instance, infrastructure unpreparedness or technology choice errors. A decrease in economic activity or the occurrence of stranded assets, “he added.
Julius also mentioned the goal of the Ministry of Transportation’s road maps, based on his study, is not comprehending the Paris Agreement.
“If we look at the roadmap of the automotive industry until 2034, if I am not mistaken, only 30 percent of vehicle production is in the form of solar energy vehicles or fuel cells. If so, then the projection in 2020, only 30 percent of electric vehicles will be on the roads, ”he explained.
He stated that the energy transition road map in the transportation sector must contain infrastructure development that is in line with technological developments, anticipate the economic-social impact of the transition along with its mitigation plans, as well as research and development of alternative low-carbon transportation technologies. Besides, the government must have a plan and ensure that this transition process is successfully implemented while reducing the risks from the transition process that occurs, especially to the stakeholders involved (including industry players, workers, and affected communities).
Responding to Julius’ explanation, Faela agreed that the government must be more proactive in addressing the need for low-carbon transportation, not only at the national level and even at the regional level.
“There is a need for road maps and targets at the regional level to switch to public transportation with renewable energy so that it is not only about electricity,” she said.
She also suggested that the Ministry of Transportation could encourage non-fiscal intensive policies in local governments, such as lower parking tickets for low-carbon vehicles.
Responding to this, Firdaus Komarno generally agreed on Indonesia’s need to make an energy transition. Through his presentation, Firdaus revealed that the government has issued various policies to encourage energy transition in the transportation sector. However, he admitted that it was not well integrated.
“Hopefully, in the future, especially the three Ministries, such as Energy and Mineral Resources (ESDM), Transportation and Industry work together, integrate to guard this low-carbon development,” he hoped.
Firdaus has the same view regarding the challenges of the energy transition in Indonesia. In addition to what Julius has mentioned, one of the obstacles the government faces is the absence of a stipulation of electricity rates, so it does not provide certainty for electric vehicle manufacturers. Moreover, the government has not issued a policy of providing incentives for users of low-carbon vehicles. Furthermore, Firdaus feels happy and open if there is an opportunity for discussion for his party, IESR, or other organizations that have the same vision to achieve low carbon transportation in Indonesia.
Jakarta, Tuesday, September 28, 2020 – Institute for Essential Services Reform (IESR) launched one of five thematic study series on Indonesia’s energy transition roadmap entitled National Energy Plan (RUEN): Existing Plan, Current Policies Implication and Energy Transition Scenario. This study remodels the 2017 National Energy General Plan (RUEN) through three additional scenarios (realization scenario, strategic program, and energy transition) to evaluate and project the achievements of the initial RUEN targets based on the three developed scenarios. The energy transition to renewable energy systems has become a global phenomenon as a response to addressing the threat of climate change and reducing the risk of stranded assets.
In the current policy condition, RUEN 2017 has not adopted the energy transition vision, even though it has adopted a renewable energy target of 23% of the total energy mix by 2025. This target is correlated with the total installed capacity of renewable energy generators of 45.2 GW in 2025 from a total of 136 GW of capacity. power plants. Referring to one of the findings of this report, it is indicated that the target installed capacity of renewable energy of 45.2 GW in 2025 will not be achieved in the realization scenario with various decreases in the value of parameters and key assumptions that have occurred in the last five years. With economic and energy conditions and parameters that have changed since the 2017 RUEN was drafted five years ago, the IESR calls for a review and renewal of the RUEN, as a reference for mid-term and long-term national energy planning and development, in order to accommodate not only the progress and development of the energy transition. global, but also to anticipate various challenges and opportunities that arise in the transformation that is currently taking place.
The economics of renewable energy technologies and energy storage systems that keep getting cheaper every year can accelerate the energy transition efforts. In fact, the price of electricity generated from solar and wind energy on a large scale is able to compete with the price of electricity generation from coal. The digital revolution in the energy sector, the growing power of consumers to use electricity from clean energy, the rise of hybrid and electric vehicles, and the decentralization of energy generation are other driving factors in efforts to decarbonize this sector.
“For the Indonesian context, the transition to a sustainable clean energy system needs to be well prepared. The use of renewable energy, which has become a priority for the development and utilization of national energy in the National Energy Policy (KEN), has not been reflected in the achievement of RUEN until 2020. Apart from ambitious targets, several indicators and assumptions used to model energy supply and demand in RUEN were built based on data and information in 2015. In fact, in the last five years indicators and assumptions from socio-economic, techno-economic experiencing significant development, “said Fabby Tumiwa, Executive Director of IESR, in his opening remarks at the virtual launching of the study series on Indonesia’s energy transition road map study.
Referring to RUEN, in 2025 renewable energy is projected to increase from 7% to 23%, coal from 26% to 30%, and fuel oil to fall from 46% to 25%, and relative gas to fall to 22% from 23% in the previous year. the national primary energy mix. Based on this target, renewable energy power generation in 2025 will reach 45.2 GW with a composition of 20.9 GW from water, 7.2 GW from geothermal, 6.5 GW from solar, 5.5 GW from bioenergy, and 1.8 GW. from the wind power.
Fabby added, “by seeing the massive decarbonization trend occurring at the global and regional levels, IESR seeks to investigate the contextualization of the RUEN model, as a reference for medium and long term national energy planning and development, in order to accommodate not only progress and transition developments that have occurred,” but also to anticipate the various challenges and opportunities that arise in this transformation. “
The report writer, Agus Praditya Tampubolon, states that the target installed capacity of renewable energy of 45.2 GW in 2025 is indicated not to be achieved in the realization scenario with various decreases in the value of parameters and main assumptions that have occurred in the last five years. This is due to the realization of the low annual energy consumption growth rate and per capita electricity consumption as a result of low economic growth in the 2015-2019 period.
“RUEN which was established in 2017, uses real data from 2000 to 2015 as input and projects data from 2016-2050. Some of these projection data are overestimated, especially on economic and industrial growth and population demographics. This causes the projection of RUEN to be disproportionate, for example on primary energy consumption and electricity, including in generating capacity. So the realization scenario shows that renewable energy is only indicated to reach 22.62 GW in 2025. “
Agus also added that the city gas network, electric vehicles, and biodiesel launched by the government only contributed to the primary energy mix of around 3 percent (to 17.9%) of the new baseline in the realization scenario of 15% in 2025. Until 2050 too, the mixed renewable energy is projected at 40.3%, higher than the 31% target in the current RUEN model, but still has not started to take over the dominance of fossil energy by 59.7%. The mix and installed capacity of renewable energy will only increase significantly in an energy transition scenario, particularly from the time period when no new PLTUs are being built and all PLTUs over 30 years old are closed, with a projection of 408 GW by 2050.
In the report that was launched, there are at least three things that need to be done as recommendations. First, the parameters and assumptions of RUEN 2015-2050 need to be reviewed, especially in the assumption of economic growth, the rate of energy demand, and the economy of renewable energy. Second, a review also needs to be done on the plan to use coal and build a PLTU as a response to the decarbonization trend which has caused a decline in coal import demand from China, India, and South Korea. Third, the need to study the development of alternative scenarios in the national energy supply plan that integrates a larger portion of renewable energy.
Therefore, the IESR calls for a review and renewal of the RUEN, as a reference for medium and long-term national energy planning and development, in order to accommodate not only the progress and development of the global energy transition but also to anticipate the various challenges and opportunities that arise in the transformation. when this is happening.
Sunsational GNSSA: Reflections on Three Years of National Movement of One Million Rooftop solar
Jakarta, 24 September 2020
Third-year after the National Movement for One Million Rooftop Solar (GNSSA) launched, declarators, energy observers, and rooftop solar costumers gathered online to celebrate various achievements and review the challenges, and reaffirm our shared commitment to encourage the use of rooftop solar in Indonesia.
Reminiscing, Fabby Tumiwa, Executive Director of the Institute for Essential Services Reforms (IESR) who is also one of the declarators, said that GNSSA’s ideas and targets were initially spontaneous gesture but became very impactful, as it is involved many discussions and initiations from various energy experts in it.
Hence until this year, the target of one million rooftop solar users has not been achieved yet. Still, he appreciates every effort in making it happen, including a total of 11.5 MW of installation with 7.5 MW of total PLN customers, the issuance of Ministerial Regulation (Permen) No. 49 of 2018, and the public’s attractiveness to the rooftop solar increased.
The declarators generally gave similar responses. Surya Dharma, Chairperson of the Indonesian Renewable Energy Society (METI), admitted that the rooftop solar plants’ socialization was relatively successful.
“This spirit must be carry on. I want us to echo this again so that it becomes a movement that brings success, “he said enthusiastically.
In line with the community’s increasing interest or local government to install a rooftop solar in their homes, several challenges have emerged. Tommy, one of the solar PV adopters, revealed, “In Semarang at the end of 2018 when Permen No. 49 just came out, the net meter is still difficult, but thankfully, for now, the net meter in Semarang is very easy and smooth. “
He also said that another obstacle was applying regulations that were not uniform so that the price of rooftop solar products varied greatly. He hopes that someday there will be cost standardization.
Not only that, the investment cost for rooftop solar relatively still expensive. Tommy proposed that the local government through regional banks can offer loan assistance in the same way as credit for motorbikes.
Fabby in his presentation, highlighted a similar challenge.
“There are things that still need to be improved, such as the ecosystem to support the development of rooftop solar power plants,” he said.
He explained that government involvement is critical by providing policy support, incentives, assisting, providing reliable information, and technical support for those interested in rooftop PV mini-grid and providing a service center to guarantee the products (mini-grid). If this design works, it can absorb around thirty thousand workers in the sector and have great potential in restoring the Indonesian economy. (IESR’s estimation)
Andika Prastawa, Director of the Center for the Study of the Telematics and Electronics Manufacturing Industry (PPIMTE), who is also the Chair of the Indonesian Solar Energy Association (AESI), said that the GNSSA’s big target is not ambitious but encourages all parties to work hard.
He agreed that if the ecosystem were formed, in 2025, solar rooftop growth would be even faster. He calculated that if 200 MW reached per year, around 200 million US dollars would be circulated so that the industry would be more competitive.
“This industry is suitable for assisting economic recovery due to COVID-19 because solar rooftop does not require massive work and does not violate social distancing,” he said.
Increasingly Popular in Regions
Jarwanto from the Energy and Mineral Resources (ESDM) Central Java Regional Office said a promising development to adopt this technology in this area.
“Central Java was two years late from GNSSA, ”he said, laughing.
However, he explained that there were many positive things that the government had managed to anticipate the success of the solar revolution program.
“Starting with the installation of the solar rooftop in the official office, it proves to all that after we have made a declaration, we will boldly issue a regional policy. The response was amazingly good. If there were no coronavirus, the escalation would be higher, potentially around 5.1 MW, “he explained.
Meanwhile, in Bali, MEMR Regional office, Setiawan explained that the local government is still comprehensively reviewing the construction of Solar rooftop in the island because buildings and roofs structure was typical compared to the other big cities in Indonesia. He is also grateful for the central government’s assistance, which has provided 270 KW of solar rooftop facilities in Bali’s 7 iconic locations.
On the other hand, Jakarta’s Government recommendation to adopt the technology has become more robust, as it can reduce air pollution according to Governor Instruction number 66 of 2018.
“If this solar panel is already in the national catalog, then there is no need for the old bureaucracy, users can immediately install it,” he said. Rikki from the Jakarta Manpower and Transmigration Office.
A solar energy activist who has been struggling for 20 years and is also a GNSSA declarator, Jon Raspati considers the achievement of GNSSA is a dream come true. He also invited everyone to be involved in GNSSA not only to enjoy the benefits of the solar rooftop but also to participate in saving the earth from dirty energy.
“Around the world, solar rooftop has become an economic powerhouse. Because it is sustainable energy and not discriminatory so that everyone can use it. We also have a responsibility to this earth, millions of people should care about it, “he said.
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