The rising case of Climate Disaster Anomalies in 2020, Indonesian Climate Ambition Report is (Still) Red

Besides Covid-19, Extreme Weather Keeps Attacking 2020

In 2020, a massive climate disaster befalls due to an increase in the earth’s temperature. In just 6 (six) months, there have been more than 100 climate disasters with a total impact of more than 50 million. Compared to 2019, there were 237 natural disasters, with more than 94.6 million people affected. 

The global average temperature for 2020 (January to October) increased to 1.2 ± 0.1 ° C from 1850-1900. The World Meteorological Organization (WMO) assesses that 2020 is on course to be one of the three warmest on record. The proof is the warming of the north pole. 

The Arctic plays a significant role in keeping the earth’s temperature cool. The surface of the Arctic sea will reflect sunlight to stabilize the earth’s climate. However, Jeffrey R. Key, a scientist at the National Oceanic and Atmospheric Administration (NOAA), through satellite monitoring, showed the decreasing of the thickness of the Arctic sea ice, increasing plant growth, accelerating ice sheet loss, and the shifting of atmospheric circulation patterns.

It indicates that the world continues to experience a notable increase in temperature. The Climate Transparency Report 2020 summarizes some of the most unusual natural disaster phenomena in 2020. 

The Climate Transparency Report (previously known as “Brown to Green Report”) is the world’s most comprehensive annual review of G20 countries’ climate action and their transition to a net-zero emissions economy. Climate Transparency is a global partnership of 14 think tanks, including the Institute for Essential Services Reform (IESR) and NGOs from most G20 countries with support from the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).

This year’s report analyzes the performance of the G20 countries across 100 indicators of climate adaptation, mitigation, and the financial sector. It also includes the G20 government’s response to the Covid-19 crisis as well as the latest emission data and projections for 2020.

The Climate Transparency report revealed, for the first time in history, in 2020, South Korea experienced the longest monsoon season for 54 days. Dozens of deaths and economic losses for thousands of people from torrential rains, floods, and landslides. Argentina, in the same year, experienced its peatlands with its worst fires in over a decade. It was exacerbated by low water levels and some of the driest conditions since 2008. Brazil endured a similar event as well, precisely in Pantanal, the largest peatland in the world has encountered the worst drought and fire in the last 15 years. Of the most shocking phenomena, Siberia underwent a period of extremely high temperatures, including a record temperature of 38oC in the city of Verkhoyansk on June 20, causing wildfires, loss of ice sheets, and pest invasion.

In Indonesia, The National Agency for Disaster (BNPB) data shows that until 23rd December 2020, there were around 2,878 disasters in Indonesia. The majority were hydrometeorological disasters with the largest number of floods, followed by tornadoes and landslides. A total of 6.3 million people were displaced, 407 people died, and 532 were injured. 

In general, the world is experiencing increasing natural disasters. A report by The International Federation of Red Cross and Red Crescent Societies (IFRC) states that during the Covid-19 pandemic, as many as 51 million people were affected by drought, floods, and strong winds. Compare this with 2019,  with an estimated 41 million people experiencing losses due to floods and strong winds.

Unfortunately, amid a turbulent climate that has brought huge losses (estimated at around USD 139.8 billion), the leaders of countries in the world, especially the G20 or countries that represent 75% of global greenhouse gas emissions, are still detained to demonstrate its commitment to fulfilling the Paris Agreement.

Pitching Lip Services Promises on Climate Ambition Summit

Five years after the Paris Agreement was agreed upon, the United Nations hosted a Climate Ambition Summit (12/12), 75 countries that renewed their Nationally Determined Contribution (NDC) were allowed to speak at the event. However, only 3 (three) countries have drawn attention, such as China’s NDC-related commitment to lower its CO2 emissions per unit of gross domestic product (GDP) by over 65% by 2030, from 2005 levels; the European Union’s NDC-related pledge to reduce GHG emissions by at least 55% from 1990 levels by 2030; and the UK’s NDC-related target of reducing GHG emissions at least 68% below 1990 levels by 2030.

However, Alok Sharma, the expected COP 26 President, criticized that they were still insufficient to fulfill the Paris Agreement. For instance, while China has set bold targets for GHG reduction, Xi Jinping, the Chinese president, provided only small details of the strategy to achieve them.

At the same moment, António Guterres, Secretary-General of the United Nations, regretted the country’s lack of commitment in facing the threat of the climate crisis.

“We borrow trillions of dollars in stimulus to recover Covid-19 from future generations. However, we use the money to inherit a damaged planet, which is burdening future generations. This is unacceptable, “he said distinctly.

Moreover, based on the observation of the Climate Transparency Report, about 54 percent of the total stimulus of the G20 countries for post-Covid-19 recovery in the energy sector,  directed to support fossil energy (as of October). Furthermore, the Greenness of Stimulus Index (GSI) measurement found that 16 countries in the G20 chose not to reform their systems to accelerate the decarbonization process sustainably.

Indonesia’s Report is Still Red for Climate Ambition

Indonesia was not among the countries invited to the Climate Ambition Summit. It happened because Indonesia has decided to stick to the previous NDC (November 2016). Indonesia’s NDC target is to reduce emissions by 29% on its own and up to 41% if there is international support from business as usual conditions by 2030, through decarbonization in the forestry, energy, waste, industrial processes and product use sectors, and agriculture.

However, based on the modeling of the Climate Action Tracker (CAT), without updating the NDC more ambitiously, Indonesia’s score is still the same as the previous year, which is very insufficient. It is only one level below the worst value, critically insufficient.  It means that with climate mitigation efforts that only refer to its NDC, Indonesia failed to meet the Paris Agreement target of keeping the earth’s temperature below 1.5-20C, but instead allowed it to heat up to 40C by 2030.

The Climate Transparency Report 2020 highlights the fact that Indonesia is one of the countries that experienced a slight reduction in CO2 gas in 2020. The increase in carbon emissions has even occurred in the building sector by up to 14 percent.

On the other hand, Indonesia’s greenhouse gas (GHG) emissions (apart from emissions from land-use) increased by 140% between 1990 and 2017, with the largest increase in GHG coming from the energy sector. However, Indonesia still provides the largest subsidies to the fossil energy sector without making a clear road map and appropriate policy support to gradually move out of dependence on fossil energy. In 2019, Indonesia disbursed fossil fuel subsidies worth USD 8.6 billion compared to the previous year, namely USD 8.1 billion.

As the leader of the G20 in 2022, Indonesia Must Expose Progressive Efforts to Mitigate the Climate Crisis

In 2022, Indonesia will receive high trust from the international community to occupy several strategic roles, one of which is Indonesia exchanging positions with India in the leadership of the G20. Indonesia can use it to recover from the Covid-19 crisis and gather more support from the international community, especially developed countries, by preparing an energy transition road map that maintains decarbonization and development of renewable energy.

“At the G20, Indonesia can emphasize the urgency to accelerate decarbonization efforts and build collective initiatives from G20 countries to support countries that still use coal power plants predominantly to be able to phase out it gradually before 2030 and accelerate the development of clean energy infrastructure with the support of international funding mechanisms, “said Fabby Tumiwa, Executive Director of IESR.

Governments also still have the opportunity to direct stimulus spending and introduce complementary measures to ensure that public resources support equitable transitions to low-carbon GHG emissions and a climate-resilient future.

The Climate Transparency Report encourages all G20 countries to apply the five principles of green recovery to recover from the Covid-19 crisis and prevent the greatest potential crisis due to climate change.

First, invest in sustainable physical infrastructure. It is including renewable energy development such as solar, wind, biofuels, and hydrogen, as well as the use of carbon-neutral technology. In the transportation sector, the government needs to develop electric vehicle infrastructure based on renewable energy, applying energy-efficient and retrofit buildings (energy storage systems).

Second, invest in nature-based solutions & the environment. It will open up wider green job opportunities, such as land restoration, increasing green cover, fire prevention, and agriculture with an efficient irrigation system.

Third, invest in education, research, and development. These investments can support and advance industrial growth in renewable energy, infrastructure development to support low-carbon vehicles, and water-efficient agriculture.

Fourth, provide prerequisites for sectors that receive bailout funds to be in line with long-term commitments towards sustainability, inclusion, and low carbon.

Fifth, strengthen policies, regulations, and incentives for carbon-neutral development. The post-Covid-19 recovery moment is the right time for the government to support the implementation of an energy transition to low-carbon energy and sustainable development. The government can issue the policy of providing special tax or subsidies for renewable energy, carbon taxes, incentives for low-emission vehicles.

The government’s discipline to fulfill its commitment to low-carbon development will bring the Indonesian people to a better health condition. It also triggers the availability of more green jobs than the fossil fuel industry, more activities in green and agriculture, biodiversity protection, and financial resilience. It keeps the country staying away from stranded assets due to wasted development in the fossil industry.

Indonesia – Germany Collaborate to Accelerate the Energy Transition in the Electricity Power Sector through the Clean, Affordable, and Secure Energy for Southeast Asia (CASE) Program

 

The Kick off workshop of the Clean, Affordable, and Secure Energy for Southeast Asia (CASE) program (2/2/2021) signifies the collaboration between the Indonesian and German governments to support the energy transition, especially in the electricity sector in Indonesia and also the Southeast Asia region.

Norbert Gorrißen, Deputy Director-General of the German Federal Ministry for the Environment, Nature, Conservation and Nuclear Safety (BMU), said in his opening remarks that climate change is currently the concern of many major countries in the world. He pointed out regarding Japan, China, Philippines that have taken a commitment to fulfill the Paris Agreement to maintain the earth’s temperature below 2°C by reducing the use of coal in its energy sector. He pointed out that Indonesia, as one of the most influential countries in Southeast Asia and the G20, should also do the same.

“The energy situation in Indonesia is indeed very complex, but there is no other way than to do an energy transition. The CASE project is a big project between Germany and Indonesia. Through it, we are ready to share experiences related to the energy transition that Germany has undertaken. Currently, in Germany, more than 50 percent of electricity comes from renewable energy, ”he explained.

Lisa Tinschert, Program Manager for CASE Indonesia for GIZ Indonesia, stated that one of CASE’s most prominent challenges to overcome to achieve its goal is a low capability and political will or the limited and decent or sufficient information about the energy transition.

“The next challenge is policies, regulations, and plans that are not always consistent and do not prioritize the development of decentralized renewable energy, as well as business ecosystems and access to funding that are not very supportive of the energy transition,” explained Lisa.

Fabby Tumiwa, Project Lead CASE Indonesia from the Institute for Essential Services Reform (IESR), explained that the energy transition is not only by developing and increasing the number of renewable energy power plants but also stopping the construction of (new) coal-fired power plants after 2025, and phasing out the older coal-fired power plants than 20 years as soon as possible.

“Although growing modestly, there will be an increase in renewable energy development in 2020, generally coming from hydro and solar power as much as 28.8 MW. The total capacity of renewable energy generators installed until 2020 is around 10.5 GW, “he added.

According to Fabby, our homework in the energy transition is energy efficiency. Several programs to support energy efficiency in Indonesia need to be monitored, such as reducing energy consumption in the transportation sector, updating and introducing Minimum Energy Performance Standards (MEPS), and requiring the inclusion of Energy Saving Labels for electrical appliances, as well as utilizing the potential of green buildings. Quoting the latest IESR report, Indonesia Energy Transition Outlook 2021, Fabby stated that the lack of funds and the lack of monitoring made the extensive potential in green building energy wasted. 

“Increasing energy efficiency will stop energy demand, thereby reducing the burden on building power plants, especially coal power plants in the future. Increasing renewable energy development and energy efficiency are the keys to accelerating the energy transition, “he added.

Answering the mandate of the renewable energy mix with a target of 23 percent by 2025, PLN’s EVP Electricity System Planning Edwin Nugraha Putra said that PLN committed to achieving it. One of its efforts is by intensifying co-firing at coal-fired power plants. However, he realized that the biggest challenge for co-firing is the availability of feedstocks, up to 16 million tons of biomass/year.

“We hope that by working together with CASE we will be able to solve problems regarding demand and encourage renewable energy investment. We are ready to build renewable energy by (one of them – red) renewable energy based on economic development (REBED), “said Edwin.

Zulvia Dwi Kurnaini, Senior Policy Analyst, Fiscal Policy Agency, Ministry of Finance also highlighted renewable investment strategy.

“The finance ministry is committed to an energy transition. CASE will be a partner in providing fiscal policy input that supports renewable energy investment to accelerate this energy transition. Currently, the government is doing its job to supply affordable electricity by providing subsidies for fossil energy. However, on the other hand, the government also has other obligations to develop clean energy. Even though the state budget (APBN) is still very limited, “she said.

Zulvia hopes that Bappenas as the political partner of the CASE program can play its role as a locomotive to see various aspects of the energy transition such as the fitness of PLN condition, the state budget, and the economy of renewable energy into one integral part.

Representing Bappenas, Director of Electricity, Telecommunications and Informatics, Rachmat Mardiana, hopes that working together on the CASE program can help provide solutions to problems in the electricity sector in Indonesia, starting from the primary energy side such as dependence on fossil energy, transformation in the electricity system, including not yet integrated and synergistic, as well as obstacles at end-users, such as unequal access to electricity.

The programme “Clean, Affordable and Secure Energy for Southeast Asia” (CASE) aims to drive change in the power sector in SEA towards increased ambitions with regards to climate change. It focuses on the four main SEA countries including Indonesia in terms of energy demand and also foresees regional activities.

Anchored in Indonesia with the political partner “Ministry of National Development Planning”, with support of a country implementation team and international partners, CASE will propose evidence-based solutions to the challenges met by decision-makers in the design and implementation of the energy system of the future and build societal support around those solutions. A joint fact-finding approach will be applied, involving expert analysis and dialogue to work towards consensus by narrowing areas of disagreement.

CASE will also support dialogue and coordination in the Indonesian power sector, provides technical and policy support, and facilitate dialogue around a new energy vision. Through these activities, CASE will directly contribute to the transition of the power sector towards an innovative, economically successful, and environmentally friendly model for SEA. CASE functions as an aligned programme to the SEA Energy Transition Partnership (SEA ETP).

Presentation materials

Fabby Tumiwa_CASE KickOff_Energy Transition Status in Indonesia

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CASE Kick-Off Workshop - CASE Intro - Lisa Tinschert final

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02.02.2021 - (rev5)Presentasi Direktorat KTI - Kick Off CASE

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02.02.2021 - (Pak Yusuf?) Outlook and Agenda

Unduh

The Surpassing Potential of Rooftop Solar Market to Achieve the Target of 23 Percent Renewable Energy Mix in 2025

Jakarta, 15 December 2020 – “What are the investment costs and roof area that I need to install a solar rooftop PV system? Does it save electricity costs? How is the integration with the PLN network? What are the installation regulations like?”

These questions often arise from the community before they decide to use the solar rooftop. Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) said that it is a natural thing because generally, as energy consumers, they want to know the rooftop solar PV system they will use. Product knowledge is a considerable part in determining this decision.

“The need for information related to solar rooftops is increasing compared to 3 years ago when we initiated the National Movement for One Million Solar Rooftops (Gerakan Nasional Sejuta Surya Atap-GNSSA). The rooftop PV market is now also more open, even available online,” he explained in the discussion on Pursuing the Gigawatt Solar Energy Order in Indonesia, which was held by IESR.

However, this interest has not become a significant realization. As compared to Vietnam, in the same period, the last 2-3 years, Vietnam was able to increase its solar rooftop installation to 1.5 GWp. Meanwhile, Indonesia has just recorded the establishment of a solar rooftop of less than 20 MW.

In general, Indonesia’s renewable energy targets in the National Energy General Plan (Rencana Umum Energi Nasional-RUEN) have not gone according to plan. Until the end of 2019, the achievement of renewable energy was only 9.15%. Meanwhile, only 5 (five) years left to realize 23% renewable energy.

“To pursue that target is by encouraging the implementation of the solar rooftops. GNSSA exists to foster the formation of the gigawatt order in Indonesia. If this order establishes, the solar roof penetration to reach the target of 6.5 GW of renewable energy in RUEN will be faster, achieving economies of scale, will also increase public interest, and the price will be more affordable, “said Fabby.

Indeed, the GNSSA echo has had a pretty good impact. There has been an increase in the number of PLN customers using solar rooftop PV during the last 3 (three) years, from 268 in 2017 to more than 2,500 customers by October 2020. Regulations issued by the Ministry MEMR also triggered this increase – Permen ESDM No. 49/2018 as an updated Regulation from Permen ESDM No.13/2019 and No. 16/2019.

There are more companies providing rooftop PV installation services and increasing public interest in using rooftop solar PV as part of their lifestyle.

However, it is still not enough to meet the target of solar energy in RUEN, and the aim of the GNSSA, 1 (one) GW cumulative solar rooftop by 2020.
According to Fabby, rather than hoping for the development of solar panels on a utility-scale that requires land, time, and funding, the government should also focus on roof solar power plants for households, business and commercial sectors, and MSMEs.

“The IESR study shows that by 2030, the market potential for rooftop solar power plants in Java and Bali could reach 10-12 GW,” he also explained.

In Central Java alone, based on the IESR survey, there is a market potential of up to 9.6% for the residential group, 9.8% for business/commercial, and 10.8% for MSMEs. Furthermore, this survey also shows that 7 out of 10 homeowners give a positive response to using solar rooftops. However, 92% still have high doubts because they do not understand the technology, assume the price is still costly, and have not got the right answer regarding the products and benefits of saving electricity from solar rooftops.

Regarding the price, according to Fabby, in the past 3 (three) years, there has been a decrease in the investment cost for installing the roof PLTS, which was previously Rp. 25 – 35 million per kWp to Rp. 15 – 20 million per kWp. Likewise, the price of solar modules has decreased by 40% from $ 30 per Wp to 20 cents per Wp.

“Customers’ hesitation in installing roof solar power plants is based on the lack of reliable information and flat socialization of regulations regarding the use of roof solar power plants. Besides, information regarding the procedure for installing solar rooftops connected to the network (on-grid), the benefits that can be felt by users, to where they can buy their products is still limited and is still concentrated in big cities in Java, “said Fabby.

Bambang Sumaryo, Chairman of the Solar Roof Solar Power Users Association (Perkumpulan Pengguna Listrik Surya Atap-PPLSA), a rooftop solar user for 6 (six) years to date, expressed other dilemmas that are usually considered by potential consumers in installing rooftop solar power plants.

“The availability of kWh Exim (export-import) allows solar rooftops users to enter the on-grid network, making it more efficient. However, the availability of kWh Exim is hard to obtain, especially in the regions, “he complained.
Bambang also agrees with IESR’s observations regarding the lack of evenness of information accessible to potential users.

Moreover, Bambang mentioned the net-metering tariff rule of 1: 0.65 in the Permen ESDM No. 49/2018. This rate causes the payback period to be more than 5 (five) years, and the percentage of savings is not as high as expected.

Responding to the information gap accessible to the public, IESR built an online portal for SolarHub Indonesia (solarhub.id), which aims to provide information about solar energy for prospective users of PLTS rooftop and connect them with companies presenting products and installing rooftop solar power plants.

“Maybe there are still people who think they need a large area to install solar rooftops. Whereas with advances in technology, we can install solar rooftop PV on the roof of the house, in the canopy, or as a hybrid system, “said Chairiman from ATW Solar as a provider of solar rooftops installation products and services who joins SolarHub Indonesia.

Chairiman hopes that this portal, with its information and accuracy of the narrative, will attract more people to invest in rooftop solar PV.

On the other hand, Marlistya Citraningrum, Manager of the IESR Sustainable Energy Access Program, explained that the SolarHub Indonesia portal would bridge the Indonesian people, especially those outside urban areas and outside Java, to get information about the solar rooftops.

“Those who live in Jakarta, for instance, are advantageous because they can be directly exposed to socialization activities and connect with product and service providers if they want to know more about designs, the benefits of savings, and after-sales services for solar rooftops PV,” she explained.

At SolarHub Indonesia, there is also a sophisticated calculator. By using it, the users can calculate the amount of savings in electricity costs, details of the need for PV mini-grid for prospective users’ buildings, and the amount of budget required for the investment.

The market potential for rooftop solar electricity also shows that the solar energy target in Indonesia can be achieved easily through the deployment of roof solar power alone. Of course, with a combination of supporting policies and regulations and the availability of complete and equitable information about rooftop solar power plants, installation procedures, product providers, and installation services, to the choice of financing schemes.

The IESR market survey also shows that most people want a payback period of fewer than five years, which is difficult to achieve if the net-metering rate used is still 1: 0.65 as stipulated in Permen ESDM No. 49/2018. Furthermore, the clarity of the installation procedure in different areas also needs to be uniformed so that users of solar rooftops do not have to wait for months to get kWh Exim (export-import). The government needs to pay attention to the aspirations of people so that their interests can be encouraged into adoption and practice.

Green Job is a recovery solution for COVID-19 Aftermath

Jakarta, 3 December 2020 – The sturdy economic contraction due to the Covid-19 pandemic has prompted many countries, including the G20, to channel stimulus to protect their economies. Although it is not as big as the support for the fossil energy sector, 17 of G20 member countries (apart from Mexico, Russia, and Saudi Arabia) provide some support for the green industry, with a primary focus on increasing the capacity of renewable energy and low emission transportation. 

Green recovery is also a recommendation in the Climate Transparency Report 2020 to sustain the CO2 emission reduction.

The Climate Transparency Report (previously known as Brown to Green Report) is the world’s most comprehensive annual review of G20 countries’ climate action and their transition to a net-zero emissions economy. Climate Transparency is a global partnership of 14 think tanks and NGOs that brings together experts from the majority of G20 countries supported by the Federal Ministry of Environment, Nature Conservation and Nuclear Security, the German Embassy to Indonesia, or the German BMU.

“The time to act is now to transform into a low-carbon economy. Indonesia has the opportunity to align its economic response with a long-term decarbonization strategy, ” said Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), at the launch of the 2020 Climate Transparency Report.

According to Fabby, rather than supporting the fossil fuel industry, an economic stimulus package, if properly directed, could provide funds to initiate an energy transition.

“Green recovery provides good opportunities globally to generate jobs that are compatible with green initiatives, for example, on solar power compared to fossil energy. The younger generation must start to consider and take opportunities in environmentally friendly jobs (green jobs),” he explained.

Andhyta Firselly Utami, Environmental Economist and co-founder of the Think Policy Society, on the same occasion, said that natural resources management tends to create more jobs. Andhyta, or who is familiarly called Afu, explains the concept of green jobs according to the ILO definition.

“Green job means producing outcomes that help reduce emissions, improve process efficiency in general, and are low in emissions and decent works in terms of working hours and working environmental conditions,” she explained.

Agreeing with Afu, Gita Syahrani, Head of the Secretariat of Lingkar Temu Kabupaten Lestari, said that whatever the profession, it can contribute to the green recovery.

“Synergize the existing professions to meet climate change targets. For instance, as a building expert, you can make energy-efficient buildings,” she explained.

Seeing the world trend that is starting to open up great opportunities for green jobs, Gita expressed the need to increase the capacity of local human resources.

“Without competitive local human resources, our dream (in participating in green work) will be challenging to come true. We need research and development that is strong enough to manage natural resources,” Gita explained.

She gave an example, as the district community’s efforts are to protect mangrove areas from burning by planting pineapples, they have to be equipped with the ability to manage their pineapples.

“For example, face masks from pineapple processing products will be much more expensive,” he explained.

In terms of creating green jobs, according to Sean Nino L, founder & CEO of Eco-Mantra, Indonesia has great potential.

“Indonesia has many islands with sunlight to generate electricity through solar power,” he said. 

He also shared his experience in developing solar power plans in hotels in Bali. He managed to keep energy by half, thus saving operational costs.

According to him, the biggest challenge in developing green jobs is that policies change frequently.

“In only 2016, the regulations on solar power could change up to 4 times,” he said.

Another difficulty addressed by Gita is the division of authority between the central government and the regions.

“It is difficult if there is no national legal protection even though the region is already enthusiastic. We recommend using a juridical approach so that national policies can be translated more specifically in the regions and more contextually,” she explained.

Furthermore, according to Gita, the government often prepares development and spatial planning plans but neglects to formulate investment plans. It is essential to synchronize with the low carbon development vision. 

Director of Manpower, National Development Planning Agency (Bappenas), Mahatmi Parwitasari Saronto, said the other challenge in realizing green recovery is the preparation of human resources for the implementation of green jobs.

“The current trend for green jobs has numerous potential. We cannot deny it, because other countries have run for green jobs. We are already left behind, “said Mahatmi, who is familiarly called Ami. 

The problem is that currently, her party does not have a green work framework, such as how much demand is needed to encourage a green economy in Indonesia.

Ami proposes strategies to accelerate green recovery such as increasing public awareness of green jobs, encouraging stimulus for green economy development, preparing appropriate regulations, encouraging vocational institutions to adopt sustainability principles, and encouraging companies to participate in job creation in green jobs.

“Bappenas is ready and guided by the low carbon development policies adopted by the government. Today, the green economy is included in the government’s vocational policy strategy that we are currently drafting, “she concluded. (US/Gb)

5 Ways to Make You Become A Part of The Energy Transition Generation

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.

Want to deepen your knowledge about the energy transition? How is Indonesia’s preparation regarding the energy transition?

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India Targeting 200 GW of Renewable Energy in 2022: Is Indonesia Following? 

Jakarta, September 16, 2020 – Since the 2000s, the Indian government has shown its seriousness in developing renewable energy to meet domestic energy needs. Determined, the Indian government is ambitiously targeting the development of the renewable energy plant of 200 GW or 42 percent of total electricity generation by 2022.

The Indian government has been formulating an ecosystem to support the achievement of renewable energy targets in its policies and programs, such as the development of solar parks and solar cities. As a result, India began to show its position as a country that only had 10 MW of solar power plants in 2010, now reaching 88 GW in 2020.

Indian government’s achievement in accelerating renewable energy is something worthies that the Indonesian government should follow. To more understand the successful recipe of solar power plant development in India, the Institute for Essential Services Reform (IESR) conducted an online seminar entitled Bringing Indonesia to the Gigawatt Club: India Made It, and So Can We. This seminar brought together solar energy industry professionals from India to share their experiences and lessons learned. Kanika Chawla, Director of the Center for Energy Finance CEEW, India, and Kushagra Nardan, Co-Founder & President of SunSource Energy, India, were the speakers, meanwhile, as the responders were Harris Yahya as Director of Various New and Renewable Energy, Ministry of Energy and Mineral Resources, Cita Dewi, EVP of Renewable Energy at the State Electricity Company (PLN), Yohanes Bambang Sumaryo, Indonesian Solar Energy Association (Asosiasi Energi Solar Indonesia – AESI), and Fabby Tumiwa, Executive Director of IESR.

Kanika explained that one of the best practices of the Indian government is to establish a renewable energy market by profiling in detail its long-term targets. It has attracted many investors, both domestic and international, to participate because they can project their industries in the next five or ten years. Moreover, many investors are interested in involving, making price negotiations more competitive and cheaper.

“Solar and wind tariffs have seen an aggressive decline around the world but also in India more specifically, and more steeply, I would say it is very much based on the large market, the market design. If at first India was a price taker, now it is a price maker,” she said.

However, Kanika explains that along the way, the market identified various risks, such as the offtake risk (payment delays), curtailment risks where the grid unable to absorb the amount of energy produced, foreign currency exchange, land acquisition, and construction, and policies inconsistencies or changes in in-laws.

Kushagra added that the Indian government mitigated these risks by implementing clear and consistent policies, both in terms of the scale of utility to net metering. Responding to the conducive environment of renewable energy in India, his company has installed rooftop solar power plants in commercial buildings such as 10 MW in textile factories in northern India, floating solar in the oil company, and rooftop solar project at the Airport in New Delhi.

Furthermore, Kushagra also shared several steps that the Indian government has taken to realize the target of renewable energy development, for example, the existence of a specialized government body to achieve the National Solar Mission with Solar Energy Corporation Of India Limited (SECI) at the national level and various agencies at the state level.

Reviewing again, Fabby Tumiwa emphasized some important notes that deserve the attention of the Indonesian government to achieve the renewable energy mix target of 23 percent with 6.5 GW coming from solar power plants by 2025.

“Indonesia needs the support of legislation and regulations in implementing renewable energy targets into more concrete programs and projects. As in India, with its Renewable Purchase Obligation (RPO) stipulated in the Act, each state is required to set renewable energy targets as a priority to be achieved. Besides, the Indian government provides supporting funding through the National Clean Energy and Environmental Fund (NCEEF) and financial assistance to project developers and optimization of public funds. Also, they create various schemes for on-grid and off-grid solar. The bidding process has also become more competitive in the format of a large-scale reverse auction, which is effective and can attract low solar price bids,” he emphasized.

The procurement process in the form of a reverse auction that is well designed, carried out efficiently and transparently, and on a large scale is one of the supporting factors in driving the competitiveness of solar power generation and results in a much lower generation price compared to fossil energy. Also, Fabby explained that the role of state governments in India is essential in the acquisition of land for the solar park scheme. The Indian government is acting directly to provide the area and build complementary infrastructure. In Indonesia, the provision of land is often constrained by permits and inadequate location, which then causes land acquisition consuming a large portion of the capital expenditure for solar power plant development.

“Regulations related to renewable energy in the form of presidential regulations are being processed. No government body specifically deals with renewable energy. Of course, there is no RPO policy in Indonesia. I think this policy is good to emulate, ” he explained.

Concerning the funding and investment issues of solar power plants, the Indonesian government is also establishing communication with international organizations. Harris also sees the problem of land acquisition as an ongoing problem in Indonesia. He hopes that in the future, he can discuss with the ministries and organizations in Indonesia, so it will be easier for investors to develop their solar power plant business. Meanwhile, both Cita and Yumarno expressed their appreciation for India’s success in managing the various risks that exist and providing proper solutions for achieving its renewable energy targets. Cita said that PLN is open to conduct deeper discussions with India in adopting learning steps for Indonesia’s progress in the field of renewable energy.

Presentation materials

KC - India's energy transition IESR -15Sep20

Unduh

Kushagra Nandan- SunSource Energy

Unduh

The government ought to Prepare a Strategy to Accelerate Energy Transitions

 

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.

Download the full report of the study here:

RUEN – Existing Plan, Current policies, and Energy Transition Scenario

 

Inaugurates the Largest Solar Roof Power Plant in Central Java: Energy Transition is Inevitable 

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). 

GNSSA: An effort to Create a Solar-rooftop friendly Ecosystem

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.