Kompas | Pemerintah Berkomitmen Kurangi Pembangunan PLTU

KOMPAS – JAKARTA — Pemerintah berkomitmen mengurangi pembangunan pembangkit listrik tenaga uap atau PLTU pada masa mendatang. Adapun PLTU yang berusia di atas 20 tahun akan diganti dengan pembangkit listrik yang lebih ramah lingkungan. Data pemerintah menunjukkan, ada 23 PLTU yang bakal diganti

Baca selengkapnya di Kompas.id 24 November 2020

Indonesia: Urgency to Set a more Ambitious NDC and committed to the Silesia Declaration

Solidarity and Just Transition Silesia Declaration

 

Reviving Silesia 

Silesia or referred to as Upper Silesia is a province in Poland with the capital city of Katowice. As the region with the highest population level in Poland, Silesia relies on 85% of its electricity from power plants, so it is very dependent on the coal industry. As shown in 2017, the cumulative annual coal production was 59 million tons. This industry also absorbed around 73 thousand people or represents 4.2% of the total employment in this region in 2019. This number has dropped significantly compared to 1990, with 400 thousand workers

It is undeniable that coal mining activities that have been running since the 19th century have created significant environmental problems. Methane gas released during coal production exacerbates world climate conditions. The most concerning issue to the world, apart from natural damage, is air pollution. Referring to IQAir data, in 2019, one of the cities in Silesia, Goczałkowice Zdrój, even became a polluted city in the European Union (EU) countries. Indirectly, Silesia contributes to about 48 thousand people, mostly elderly, die prematurely each year from diseases related to air pollution. The dirty air has shortened the life expectancy of Polish citizens by an average of 9 months. 

Transforming Silesia

At COP24 in 2018, which was carried out by their own country, precisely in Katowice, Poland committed to change to be an environmentally friendly energy country. It designated the country’s efforts to comply with the Paris Agreement to limit global warming in the 1.5 – 2 ° C scenario by 2050. There were three (3) focuses that the Polish government wanted to achieve, which were technology innovation to show that there were climate-friendly modern solutions, emphasizing the need to lead change together with people through the solidarity and fair transformation of regions and industrial sectors, and improving nature by carrying out sustainable multifunctional forest management. 

The Polish Presidency conceptualized this commitment in the Solidarity and Just Transition Silesia Declaration. As many as 45 state representatives who attended COP24, including Indonesia, agreed to adopt the Silesia Declaration of Solidarity and Just Transition, which was signed directly by the President of the Republic of Indonesia, Joko Widodo. 

The Significance of Solidarity and Just Transition Silesia Declaration

All countries in the world supposedly realize that the energy transition is very costly and threatens the economic system if not prepared carefully. It is because the process of shifting energy supplies from fossil fuels to a renewable energy system that is more efficient, low carbon, and sustainable will impact the fossil energy industry as a source of profit for a country rich in non-renewable resources and more than 10 million workers in this world.

Solidarity and Just Transition Silesia Declaration contains seven (7) essential points as directions for countries in the world to prepare for their energy transition process. Briefly, the Silesia Declaration affirms the effectiveness and inclusive method of transition energy in people by emphasizing a measure to make infrastructure climate-resilient. Also, enhancing institutional capacity in creating environmentally-friendly jobs, underlying wider employment opportunities in renewable energy, mitigating the challenges created by the fossil energy industry to ensure a decent future for workers, and conducting the social dialogue to promote the advantages of green jobs.

The ten G20 countries representing countries in the world of the Solidarity and Just Transition Silesia Declaration are Argentina, Canada, the European Union, France, Germany, Japan, South Korea, the UK, America, and Indonesia.

The Outcome of the Solidarity and Just Transition Silesia Declaration on the Energy Strategy and Policy in Each Country

Climate Transparency Report 2020 – the most comprehensive climate action report for the G20 countries in the world, which was released on 18 November globally, summarized the responses of several countries in responding to their commitments to Solidarity and Just Transition Silesia Declaration.

Canada established a Task Force to engage with stakeholders on a just transition for coal workers, as the country aims to phase-out coal power by 2030. In 2019, a CAD 150m fund was established to support affected communities

Germany adopted a coal exit law in July 2020 that set out a roadmap for phasing out coal power by 2038 and paved the way for EUR 40bn support to coal regions and provided compensation for coal plant operators.

The EU established the Platform for Coal Regions in Transition aiming at stakeholder knowledge sharing and exchanges of experiences in affected regions. The EU also created the Just Transition Mechanism aimed to mobilize at least EUR 100bn between 2021 and 2027.

South Africa has explicitly recognized a just transition as a priority in its National Development Plan (2012) and its NDC. The National Planning Commission has begun a social dialogue process to determine pathways for a just transition.

How is Indonesia’s position toward the Silesia Declaration?

Indonesia is committed to making a Nationally Determined Contribution (NDC) meet the Paris Agreement. Indonesia’s NDC has an emission reduction target of 29% from Business as Usual (BaU) 2030 (41% with international support). However, the mitigation activities for fossil energy in NDCs, based on the Institute for Essential Services Reform (IESR) study, are not ambitious.

The Climate Transparency Report 2020 notes that Indonesia is expanding its coal industry, as shown as follows:

  1. Increase in PLTU capacity by more than 10 GW during 2015-2019 from 24.4 GW to 34.7 GW (Electricity statistics, 2019; Mulyana, 2020).
  2. The increase in coal consumption for domestic electricity by 36.5 million tons during 2015-2019 from 61.4 million tons to 97.9 million tons (Dirjen Minerba, 2020)
  3. According to PLN’s electricity supply business plan 2019–2028, Indonesia plans on doubling the current coal capacity by building an additional 27.1 GW of coal power plant capacity in the next decade, indicating that the coal share in the electricity mix might increase further (PLN, 2019). The government national electricity plan (RUKN 2019–2038) projected that in 2038, the installed capacity of coal could reach 91 GW (a third of total installed capacity), and the coal share in the electricity mix would still be 47% (DG Electricity, 2019).
  4. The Indonesian government also provides subsidized coal generation (e.g. loan guarantees, tax exemptions, royalties, and coal price caps).

In line with the unambitious NDC, Indonesia’s steps towards reaching the goal of the Silesian Solidarity Declaration and Just Transition are still less than it was expected. 

To gain on with it, IESR encourages the government to update its NDC by taking serious mitigation activities in the energy sector, such as a moratorium on new coal power plants and deactivation of coal power plants based on operating life, replacing thermal power plants with renewable energy generators, optimally increasing the renewable energy mix in the Java-Bali and Sumatra electricity systems without reducing system reliability, increasing the fuel economy of motorized vehicles (cars and motorbikes) following the Global Fuel Economy Initiative (GFEI) standards, increasing the use of electric vehicles (EV) in Indonesia, and increasing energy efficiency from lighting and household appliances.

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If Government Ignores to Issue Policy for a Just Energy Transition, It Will Cause Series of Social Economy Problems for Coal Producer District

 

Energy transition, a shift from fossil-based energy to renewable energy, is a global phenomenon. The threat of climate change, pollution from fossil-based energy, and the more affordable technology for renewable energy become the reasons many countries around the globe start the energy transition. Obviously, during the process, some pros and cons should be understood and anticipated for countries that are in progress of doing energy transition, including Indonesia.

Institute for Essential Services Reform (IESR) launched the fourth report of the Indonesia Energy Transition Roadmap titled “Ensuring a Just Energy Transition in Indonesia: Lessons Learned from Country Case Studies”. The paper brought by Melina Gabriella and Pamela Simamora talked about the energy transition process done by German, Australia, Canada, and South Africa. It noted lessons learned used as a recommendation for the Indonesia Government to prepare energy transitions in Indonesia.

Attending the online report launching was the IESR’s executive director, Fabby Tumiwa. The Head of Regional Planning Agencies of East Kalimantan H.M. Aswin, Aidy Halimanjaya, of the Dala Institute for Environment and Society, and Maria Emeninta of the Confederation of Indonesian Prosperous Trade Unions (KSBSI) presented as responders.

In his opening speech, Fabby Tumiwa explained that the energy transition issue is relevant to Indonesia, considering its position as a coal producer. Energy transition will impact the coal industry. As we might be aware that coal has become an export commodity, and it contributes significantly to national and regional income. Moreover, as the cost of renewable energy technology is getting competitive, coal-based power plants will no longer be economical to be continuously operated for the future decade. It will cause lower coal consumption domestically. Currently, power plants use 90% of national coal consumption.

The energy transition is basically about people. People who make the policy, and those who will be impacted by the policy. Since the Paris Agreement 2015, Indonesia ratified the document in Law No. 16 of 2016. By doing it, Indonesia declares its commitment to lower greenhouse gas emissions. One of the ways to lower GHG emissions from the energy sector is by implementing the energy transition.

The commitment to leave fossil-based energy from the countries that used to be the customer of Indonesia’s coal will transform the future of the Indonesian coal industry. Lower coal demand will directly affect the Gross Regional Domestic Product (GRDP), the balance of trade, jobs, and business opportunity. Therefore, the just energy transition approach is needed to ensure impacted labor and community are carefully considered, and no one is left behind.

Melina Gabriella explains the definition of just energy transition as an energy transition process that ensures that all parties are well accommodated, no one is abandoned and harmed. It also ensures that the cost and benefit brought by energy transition will be distributed evenly.

The four countries have experienced struggles in the energy transition. Ruhr, the biggest coal producer in German, takes 60 years to do energy transition. Germany’s first step was granting a significant amount of subsidy to secure the coal industry, which at that time was experiencing lower demand due to price liberalization.

“Its step increased the transition cost, and made economic diversification longer than it should,” added Pamela Simamora.

In Indonesia, the energy transition process seems to attract less attention to the Government. Energy transition may bring negative side effects such as the lowering of GRDP in coal producer areas, the deficit in the balance of trade, an increased number of unemployed who lost their job in the coal industry. However, if the implementation of the just energy transition process is successful there will be a series of benefits and opportunities for Indonesia such as lower cost of the electrical system, economic diversification, the birth of green jobs, better air, soil, and water quality, and lower public health costs.

According to the lesson learned of the four countries, IESR urges government to prepare strategy and policy to ensure the process of just energy transition, with the following consideration; implementation of good governance in planning energy transition pathways, enabling condition for investments in renewable energy, public consultancy, and dialogue, establishing policies related to social protection and skill development, economic diversification, and establishing funding mechanism to support just energy transition.

Responding to the IESR Study report, M. Aswin admitted that since 2007 coal has become the most prominent contributor for East Kalimantan GRDP. Yet, he explained that the local government plans to transform into a sustainable economy by lowering the contribution of the oil and gas sector from 45.49% to only 17% in 2050.

“We plan for no longer exporting raw coal. If we want to export (coal), it should be down streamed. Unfortunately, the provincial government has limited authorization regarding this matter. The authority is mostly handled by the central government. We only arrange the plan, but they (central government) determine it.”

Aidy Halimanjaya assumes that the lack of discussion about the direction of policies on the use of resources in the regions happens due to weak political communication at the national level and the knowledge gap of each government institution.

“Generally, government institutions do not see policy to its impact. It stops at the output level. We know that output level doesn’t need much coordination,” Aidy said.

Next, Maria Emeninta highlights one of the challenges to promote just energy transition is the inconsistent policy from the government. More than that, she believes that each government institution should coordinate well to reach the expected implementation of just energy transition.

“It feels that just energy transitions seemingly silent because it has not become the responsibility of the Ministry of Environment and Forestry. The Ministry of Environment and Forestry does not coordinate with the Ministry of Labour, so this issue has become abandoned,” she explained.

IESR realizes that even though energy transition is a global issue and phenomenon, it is still considered new in Indonesia. However, IESR believes that Indonesia’s energy transition planning is important concerning reaching the target to lower the earth’s temperature as it is agreed in the Paris Agreement.

Thus, the launching of the Energy Transition Roadmap Study became one of the ways to urge policymakers to understand this issue and seriously discuss it. Later on, it is needed to unify the understanding of the policymakers and other parties so that we can draw tangible urgency and concrete action plans to deal with the impact of the energy transition.

“The just energy transition process does not impact the energy system only. It will also transform the economic and Indonesian development system. Therefore, this study recommends a consultation process with various policymakers to integrate energy transition issues into national and regional development plans,” said Fabby in his closing remark.

Advancing the Rooftop Solar to Achieve Renewable Energy Targets in North Sumatra

The International Renewable Energy Agency (IRENA) reports that renewable energy (RE) has made up the majority of capacity additions for the last eight years. Its progress is in line with the development of innovation and competition in RE technology, which makes the price of RE cheaper than fossil energy in 85% of countries in the world. Moreover, in the UN Climate Action Pathway for Energy, IRENA maps that in 2025 all coal mining in the world will experience a drastic decline because it is no longer economical compared to RE.

The massive movement of the transition of fossil energy to RE or known as this energy transition was also recognized by Harris Yahya, Director of Various New and Renewable Energy. He explained the development of RE, especially solar energy, in the online event Opening the Solar Roof Market in North Sumatra. This event was organized by the Institute for Essential Services Reform (IESR) in collaboration with the Indonesian Solar Energy Association (Asosiasi Energi Surya Indonesia-AESI) and the Indonesian Employers’ Association (Asosiasi Pengusaha Indonesia-APINDO) North Sumatra in continuing the campaign for the National Movement of One Million Roofs (Gerakan Nasional Sejuta Surya Atap – GNSSA) which turned three years in last September. Following Central Java, which has committed itself as a solar province, AESI is now encouraging North Sumatra to utilize the potential of RE to meet its energy needs.

Harris explained that Indonesia is working on achieving the 23% RE mix target by 2025, while the accomplishment has been only 10.9%.

“One possible way to reach up with the RE energy mix is ​​by implementing solar power plants. Thus, the domestic industry can sustain with the RE industry, especially solar power, and it can open up green job opportunities and reduce CO2 emissions, “he said.

Harris believes that after the president signed the draft of the Presidential Decree regarding RE, the solar power plant will expand extensively. The provision of solar power plants is not only for PLN as a utility-scale but also for replacing diesel generators.

“We plan to use RE to substitute diesel power plants of up to 2,600 MW, either with solar or biomass energy,” Harris explained.

Irwansyah Putra, General Manager of the North Sumatra Regional Main Unit PLN, who was also in the discussion, said that his party fully supports government policies that encourage the development of solar power plants in North Sumatra. 

“PLN supports the use of solar power plants in North Sumatra, both roof solar and communal solar power plants, both on-grid and off-grid. Both non-PLN customers, such as villages that have no electricity or existing PLN customers by referring to regulations that have been set by the government. ” 

Irwansyah said that the North Sumatra PLN also plans to evaluate the decentralization program for archipelagic areas (electrified villages) to use rooftop solar soon. 

On the same occasion, Fabby Tumiwa, Executive Director of IESR, underlined the immense potential of solar energy in Indonesia based on the results of the IESR study. 

“Looking at the existing land capacity, the potential for installing solar power plants by utilizing ground mounting (open land) could reach 9,000 GWp with the potential to generate up to 13,000 TWh/year. With this huge potential, Indonesia can meet 100% of its energy needs from solar energy. The potential for rooftop solar in house buildings alone reaches 655 GWp, “he said. 

He also described the technical potential of rooftop solar in North Sumatra, specifically 10.2-34.6 GWp for house building. Meanwhile,  referring to the National Energy General Plan (RUEN), which encourages rooftop solar applications in government offices, regents, and mayors, North Sumatra has the potential to reach 9 MWp. 

The North Sumatra Energy and Mineral Resources (ESDM) Office, represented by Karlo Purba, Head of the Electricity Sector, explained that his party has begun to implement a strategy for using rooftop solar as stated in the draft RUED-P (Provincial Regional Energy General Plan) by setting the regulation to utilize solar cells at a minimum of 30% of government buildings, and 25% for luxury housing complexes, and apartments. He hopes to increase the interest of the public and commercial and industrial groups as well. 

Meanwhile, in the same discussion, three rooftop solar developers, namely SUN Energy, PT Engie Indonesia, and PT ATW Solar Indonesia, offered various attractive payment models for installing solar panels. 

“The most favorite payment method is the performance-based rating scheme. Customers do not need to spend money on the initial investment in rooftop solar. The rooftop solar system will become fully owned by the customer after the contract ends, ”explained I Made Aditya Suryawidya, SUN Energy’s Head of Business Solutions. 

As of October 2020, there are 2,556 PLN customers using rooftop solar with a total installed capacity of 18.2 MW.


Watch the discussion again here:

 

Great Opportunity in Developing Renewable Energy Startups

Financing Sustainable Energy Startup to Promote Climate Justice

Jakarta, 11 November 2020-In the midst of the COVID-19 pandemic that is beating the world’s economies, the International Energy Agency (IEA) reports that renewable energy (RE), especially in the electricity sector, continues to grow compared to other fossil energies. The IEA is optimistic that by 2025, renewable energy will become the largest source of electricity generation in the world by supplying one-third of the world’s electricity.

This promising development of renewable energy is in line with the spirit of the world in fulfilling the Paris Agreement to prevent the earth’s temperature from rising by more than 2oC. Seeing the trend of many countries in the world that have already made energy transitions from fossil energy to renewable energy, of course, this is increasingly opening up to start businesses in the RE sector.

The Institute for Essential Services Reform (IESR), in collaboration with Friedrich Naumann-Stiftung for Freedom (FNF), held a discussion entitled Financing Sustainable Energy Start-up to Promote Climate Justice to build networks for young people who are interested in developing RE businesses. 

Present as speakers were Khoiria Oktaviani, Communication Manager, Ministry of Energy and Mineral Resources, Aditya Mulya Pratama, Program Manager, New Energy Nexus, Yulia Safitri, Founder Pendulum, and Dodiet Prasetyo, CEO of Bumdesma Banyumas with Athariq Dias Muyasar, Vice President, Society of Renewable Energy (SRE) ITS as moderator of the discussion.

Khoiria Oktaviani revealed that Indonesia is committed to reducing greenhouse gases by 29% from business as usual (BAU) by 2030 and 41% with international support. Indonesia has an RE mix target of 23% in 2025. However, until today, it has only reached 9%.

She highlighted that the opportunity to develop a business in the RE field is numerous because Indonesia has majestic potential in RE. 

“Indonesia has the potential for RE up to 400 GW, but only 10 GW (2.5%) has been utilized,” she said. 

Khoiria invited the Indonesian youth generation to be involved in developing RE startups. She explained that since 2018, the Ministry of Energy and Mineral Resources has taken an active role as a hub for various stakeholders to encourage the application of RE.

“We provide access to ideas, innovations, pilot and semi-commercial projects, and connect startups with governments, associations, or funders or capacity building in the energy sector,” she explained.

She stated that currently, it is easier to gain business financing in the RE sector. If only, as Khoiria reminded, the startups ensure their products are not only innovative but also applicable to society. It will make the product stay sustainable fot it answers the issues in the community. Besides, she urged RE business pioneers to recognize the market and develop their products.

“Therefore, we do not stop at just one product. We should follow the pattern of community consumption. If it changes, then we must adapt as well. It is also important to promote our products and collaborate with various parties, ”Khoiria explained.

Dodiet experienced the importance of the collaboration to develop RE in his assisted village. As a provider of consolidation services for 25 Bumdes (village-owned enterprises)  in Banyumas, he felt that the networking in RE helped them to map the potential of river water by conducting a feasibility study for the development of RE electricity in the village.

Although Dodiet finds challenges in developing RE in the village, for example, such as laborious village contours or uneven sources of RE, he believes that rural communities can compete and innovate to be energy independent villages.

On the other hand, Aditya found that from his mentoring to RE startups, many startup projects are still ideas. Through New Energy Nexus, he assists them in moving forward by channeling startup groups with mentors, increasing their capacity in the fields of finance, promotion, or website development.

One of the assisted startups in New Energy Nexus, Yulia from Pendulum, shares her story when she built her business that focuses on wave power. It took her three years to make her idea into reality.

Yulia as an ITS graduate tries to solve the problem of bagan fishermen (light fishing)  in meeting their fuel needs while fishing on the sea. Bagan fishermen are fishermen who use nets and lights as a fishing instrument composed of bamboo, which is stuck into the seabed, while the upper container is equipped with a generator and gas to turn on the lights. The lamp is for drawing the fish into the net. These bagan fishermen need at least 4.5 kg of gas to keep the lights on. Besides the high price, they also have to queue to get the fuel. Moreover, they struggled to maintain electrical systems in the middle of the sea. 

The development of ocean wave energy will overcome their energy needs because it can be directly produced from the ocean waves. 

Yulia feels that nowadays, the opportunity is opening bigger for young people to start a startup because the ecosystem that supports the development of RE has been formed. The panelists agreed that to keep startups sustainable, it requires a binding agreement for everyone involved in building a startup as well as building a network with diversified expertise and policy support that benefits RE from the government.


Watch again the discussion here:

Presentation materials

201111 Bahan Paparan IESR_Climate Justice

Unduh

NEW ENERGY NEXUS - Explainer

Unduh

Webinar_IESR_Bumdesma Banyumas.pptx

Unduh

 

Introducing Solarhub.id a new IESR’s initiative providing information about solar PV and it’s development in Indonesia

According to the International Energy Agency (IEA), solar photovoltaic (PV) would play an important role in global energy transition 1. The rapid technology development and the increasing demand for solar PV have pulled the solar PV price much cheaper than in the past decades. The easy installation and construction made solar PV flexible for various applications e.g. households, industries, commercials, public facilities, also concentrated (ground-mounted & floating) solar parks. As the result, solar PV applications are getting popular and increasing exponentially in many countries around the world especially in Asia and Southeast Asia.

Located at the equator, Indonesia is abundant with solar energy potential. With an average of global horizontal irradiation of 4.8 kWh/m2, Indonesia can generate a significant amount of electricity per year, as high as 1,534 kWh/year for each installed kWp of solar panels2. Recent studies show that residential rooftop solar PV only could generate as much as 655 GWp3, not including solar park & floating solar PV potential. However, a modest development is performed by Indonesia despite the ambitious 6500 MW of solar PV target set by the government in 20254. Until this article is published the installed capacity of Solar PV in Indonesia reached only 185 MW, far behind Indonesia’s neighboring countries: Vietnam, Thailand, Philippines, and Malaysia.

This condition has no single and absolute solution. Many key factors need to be considered such as government commitment, regulation consistency, financial incentives, as well as public awareness, and access to information. A recent study report in two metropolitan cities in Indonesia shows that comprehensive information and consistent public socialization is enabling factors to the application of residential solar rooftop5. Therefore, the Institute for Essential Services Reform (IESR) initiate Solarhub platform to accelerate the application of solar PV in Indonesia.

Solarhub is an online platform, providing essential information about solar PV and its development in Indonesia. Solarhub enables people to evaluate your rooftop solar PV potential and connect people to the nearest solar system provider. Solarhub.id aims to provide access to stimulate the deployment of solar photovoltaic through an online platform. Acting as a “hub”, Solarhub.id connects people who want to install solar rooftop, and engineering, procurement, and construction (EPC) for solar rooftop. It is a way to simplify people to more literate on solar rooftop installation. Tailored with updated information about news, regulation, trivia, and other highlighted stories, Solarhub is designed to be the solar PV information center to support the public access to solar PV information in order to accelerate the application of solar PV in Indonesia.

Visit solarhub.id

Kompas | Regulasi Sektor Energi Belum Berikan Kepastian dalam Berusaha

Setahun pemerintahan Presiden Joko Widodo di periode kedua masih menyisakan pekerjaan rumah di sektor energi. Kebijakan yang tak konsisten dan rendahnya keterbukaan menimbulkan ketidakpastian.

JAKARTA, KOMPAS — Regulasi yang diterbitkan pemerintah ataupun undang-undang yang dibuat Dewan Perwakilan Rakyat di sektor energi belum memberikan kepastian dalam berusaha. Transparansi dan partisipasi publik dalam penyusunan undang-undang juga sangat minim. Sementara untuk persoalan transisi energi di Indonesia disangsikan.

Selengkapnya baca di Kompas

25 Oktober 2020