The User of Solar rooftop Increasing, Central Java Government Optimistic to Achieve the Renewable Energy Mix Target of 21.35% in 2025

Semarang, 16 February 2021 – The Provincial Government of Central Java remains firmly committed to realizing Central Java as a province that relies on clean and renewable energy in its regional development. It was emphasized by the Acting Regional Secretary of Central Java Province, Prasetyo Aribowo representing the Governor of Central Java in the Central Java Solar Day 2021 organized by the Central Java Province ESDM Service in collaboration with the Institute for Essential Services Reform (IESR).

“The use of solar energy is very relevant to our need for clean energy. We have also signed an agreement with Bappenas for carbon reduction. As a policy roadmap, it will become mainstream in development planning in Central Java so we don’t rely on fossils anymore, “Prasetyo explained.

Furthermore, Dadan Kusdiana, Director General of EBTKE (Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi of MEMR), attended the same event,  also explained that currently, his party is preparing a national energy grand strategy related to energy planning until 2035.  He stated that to achieve a renewable energy mix of 23% by 2025, developing solar power is the fastest way to catch up with the 11.5 percent lag.

The Directorate General of EBTKE is currently also in the process of revising Permen MEMR No. 49/2018 to attract more people to install the solar rooftop.

“At least there are three things that we will do, first adjusting the metering tariff rules 1: 6.5, making the reset process (zeroing) which has been done once every 3 (three) months to once a year and arranging the registration process to address difficulties in obtaining an Exim meter, for example with an online scheme, so those who register will be able to see the availability of the meter and the readiness of the solar rooftop, “explained Dadan.

“In the RUPTL (Rencana Umum Penyediaan Tenaga Listri-PLN’s electricity supply business plan) that is being drafted, we will include everything in Java for lakes, reservoirs, dams. 

“In numbers, there are 1900 MW which we will enter to encourage the use of solar power in the lake as a floating solar PV,” he added.

Embracing Dadan’s explanation, Fabby Tumiwa, Executive Director of IESR explained that IESR has conducted a study on the potential for solar energy development in Central Java, which is also high for ground-mounted PLTS and floating PV. In Central Java, 42 reservoirs have the potential to be developed as a floating PLTS location according to the PUPR Regulation No. 6/2020, for example, Gajah Mungkur Reservoir (148 MWp) and Kedung Ombo Reservoir (268 MWp).

 “The technical potential of floating PV can reach more than 700 MW of floating PLTS if the 10 biggest dams in Central Java are developed,” said Fabby.

He also explained that installing solar rooftops in public facilities, such as government offices, public facilities, and health care centers could reach the order of tens of megawatts while demonstrating the leadership of the Central Java provincial government and seriousness in developing renewable energy.

“The IESR survey also shows the great public interest in installing solar rooftops, however, the information about technology and suppliers is still limited. To encourage the adoption of rooftop PV, it is necessary to provide funding facilities in the form of low-interest, low-interest credit, fixed installments. It can be encouraged by the regional government through Bank Jateng or other state-owned banks, particularly to provide funding assistance for the installation of solar roof-tops for commercial businesses such as MSMEs, “said Fabby.

IESR recommends the government to keep distributing information, such as technical and policy,  as well as installation service providers, to attract more people investing in solar panels.

Furthermore, encouraging the availability of operational and maintenance services at the solar rooftops facilities will ensure the sustainability of the system. Moreover, the government needs to set an attractive financing scheme for public facilities and government buildings, for instance, by leasing, ESCO, third-party financing, and attractive financing schemes for households, commercial and industrial buildings. Indeed, it will be realized with the support of policies, regulations, and incentives from local governments. 

The Head of the ESDM Office of Central Java Province, Sujarwanto Dwiatmoko, is increasingly optimistic that Central Java’s goal of the regional renewable energy mix target of 21.35% in 2025 will be achieved.

“Despite the difficult conditions, the Central Java government managed to pass the target of the renewable energy mix in 2020. From the target of 11.60%, we were able to realize 11.89%. Solar panels are growing quite well, ”he explained.

Sujarwanto also gave an example of one of the efforts that the government has made in 2020 to encourage the penetration of solar panels in supporting the community’s economy is by building an off-grid solar water pump without using batteries in Kaliwungu Village, Purworejo Regency. With a capacity of 12 kWp, the pump raises water from the river and flows 20 ha of agricultural land (rice fields).

“It turns out that even though it operates only during the day, from 8 am to 5 pm, this pump can irrigate 20 ha of rice fields in just 5 (five) days for free. Meanwhile, using diesel will take 10 (ten) days, and you have to buy more diesel oil, ”he explained excitedly.

Besides, in 2020, with funds from the state budget, the Central Java government will build solar rooftops at 14 points in 11 districts/cities with a total capacity of 505 kWp.

“We will increase this number in 2021. The government plans to build around 31 units in about 8 (eight) districts/cities in Central Java. Generally, focusing on UMKM and Islamic boarding schools, “he said.

He hopes that with the solar rooftops, the electrical energy load of MSMEs and Islamic boarding schools will decrease significantly so that the existing savings can be used to develop businesses. The provincial government is also active in disseminating regulations, benefits, and development of solar panels to various groups, including the commercial and industrial sectors.

“Currently, ESDM opens consultations for those interested in using solar panels. As a result, solar panels are quite enthusiastic in Central Java. It can be seen from the increasing number of housing developers who consult at ESDM for new energy-efficient housing packages with rooftop solar installations, ”he said.

Based on PLN UID Central Java – DIY data, the growth of solar roofs is increasing, from 52 customers in 2019 to 138 customers in 2020. R-2 customers, consumers for middle-income households with a power of 3,500 VA to 5,500 VA, are dominated with as many as 41 customers. For the S2 tariff group, for the social group 1300 VA and above, all of them come from Islamic schools, totaling 23 customers.

IESR: The establishment of the Renewable Energy (RE) Implementing Body Won’t Solve the Problem

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), assessed that the establishment of the RE Implementing Body, which was initiated in the RE Bill, won’t solve the problem of the slow development of renewable energy in Indonesia.

“Don’t get trapped in the logic of cutting the compass, hoping (the formation of) an institution will solve the problem, but instead it will raise new problems (later),” he explained in the FGD FPKB DPR RI (RI House of Representative) (2/2/2021).

Fabby viewed that the RE Bill should have identified the main obstacles in achieving the renewable energy mix target, such as in terms of the policy, institutional, social, technical, and infrastructure so that it can accelerate the development of renewable energy.

“The formation of a special business entity is closely related to the national target, and the institution must adapt to the supporting environment. Meanwhile, the RE Bill is aimed at forming an ecosystem for the development and utilization of renewable energy and overcoming the obstacles that we have experienced so far, “

He analyzed that all this time, the development and utilization of renewable energy was constrained by the PLN factor. As long as PLN’s financial problems are not resolved, the penetration of renewable energy into the PLN system will be hampered. He also mentioned the renewable energy mix target of 23 percent by 2025, which until the end of 2020 still only reaches around 10 percent.

“The 23 percent target of RE in PP No. 70/2014 is not immediately integrated into the 2015 RUPTL and the 35 GW program. While the 35 GW program with coal-fired power plants is running, it turns out that electricity demand is not as big as projected. PLN is in a dilemma condition. Meanwhile, in the next 5 (five) years, PLN will have to add more than 10 GW to reach 23 percent even though they have the capability of only 5 GW, for example, “he explained. 

Fabby took the example of a business entity that the Government of India formed, namely the Solar Energy Corporation of India (SECI) in 2007, to solve the problem of climate change. At that time, more than 70 percent of power plants in India used coal. Meanwhile, India is rich in water, solar, and wind. Finally, the Indian government is targeting the development of 20 GW PLTS by 2022. Since the program launched in 2010, India has succeeded in achieving 100 GW of renewable energy at the end of 2020. 

India’s success is inseparable from SECI’s role. For the implementation of PLTS to run smoothly, SECI is tasked with working on various solar rooftops schemes such as VGF, solar parks, grid-connected rooftop PVs, and others. SECI also coordinates between utilities, transmission companies, regulators, finance and others, so that the development of renewable energy projects is not impeded.

Electricity surplus in Indonesia, can it be exported?

Export of PLTU electricity will not be effective

The government through the Ministry of Energy and Mineral Resources is reviewing the possibility to export electricity to Singapore. This is based on the electricity supply surplus experienced by PLN. With the penetration of power plants from the 35 GW project, and a decrease in domestic demand for electricity. Indonesia will experience a power supply surplus of around 40%. This numerous surplus of electricity supply occurred because of the mismatch of assumptions during project planning and preparation.

“The 35 GW project is made with an economic growth assumption of 7%. With this economic growth, it is projected that electricity demand will increase by around 8%. We know that over the past 5 years, our economic growth averagely only 5% every year, and electricity demand growth is only around 4%, plus in 2020 there is the Covid-19 pandemic which has a direct impact on the economic contraction,” explained Fabby Tumiwa, Executive Director Institute for Essential Services Reform (IESR) in the Market Review segment by IDX Channel.

On the same occasion, Fabby responded to the government’s electricity export plan.

“What needs to be understood is that the export-import scheme for electricity is not impossible, but it needs to be reviewed again for its effectiveness in the current context,” said Fabby.

In the ASEAN context, discussions on the export-import of electricity among ASEAN countries began 15 years ago. Indonesia itself has signed an MoU (Memorandum of Understanding) on ​​the export of electricity with Tenaga Nasional Berhad (TNB) Malaysia to export electricity from the Sumatra system to Peninsula Malaysia. This cooperation takes into account the peak load period between Sumatra and Peninsula Malaysia. It is noted that the Sumatra system experiences a peak load period of electric power at 17.00 – 22.00 while the peak load of Peninsula Malaysia occurs at 8.00 – 16.00. Seeing the difference in the peak load period of electricity, the process of exporting electricity from the Sumatra system to Peninsula Malaysia is possible. This project is planned to start rolling in 2028.

Potential for Foreign Market Revenue

Regarding the potential for the electricity export market, within Southeast Asia, ASEAN countries have talked a lot about clean electricity. This is because several ASEAN countries already have targets for reducing greenhouse gas (GHG) emissions and even zero emissions. Last year, Singapore said it would buy 100 MW of electricity from Malaysia, which comes from renewable energy.

“It needs to be realized and understood that the current global trend is a movement towards renewable energy,” added Fabby.

According to him, based on this fact, electricity from renewable energy will be more attractive to the global market because it is related to the GHG emission reduction agenda of each country. Indonesia needs to think about this, if we want to seriously enter the global market, especially for the issue of electricity exports. Another thing that is no less important to think about is the carbon border tax that will begin to be calculated for each commodity in global trade, including electricity.

“It would not be nice if we built a lot of PLTUs (coal-based power plant), then we exported the electricity, so Indonesia must bear the emissions. When our GHG is high, our reputation (Indonesia-ed) in the global arena will be less good, “said Fabby.

Furthermore, Fabby stated that if the aim is to absorb surplus electricity, electricity exports will not solve the problem in the short term and this solution is not a sustainable solution. The alternatives offered by Fabby in addition to electricity exports to overcome the problem of electricity surplus, i.e reconsider and renegotiate.

 

Reconsider means that the Government must have the courage to reconsider and even stop the construction of a new coal-power plant (PLTU) and divert it for renewable energy generation. This strategy will avoid oversupply in the next 2-3 years as well as to meet the renewable energy mix target of 23% by 2025. Currently, there are around 7.5 GW of PLTU power plants from the 35 GW project that are still in the planning process (permits, contracts, and others). By diverting the coal-power plant project into renewable energy generation, PLN will have low-carbon power plants, and automatically reduce greenhouse gas emissions from the energy system sector.

Meanwhile, renegotiation means the government’s effort to negotiate with PLTU entrepreneurs to reduce the production capacity of old PLTUs, in order to provide room for renewable energy generation in the energy system. To encourage the penetration of renewable energy in Indonesia’s energy system, it is necessary to reduce the capacity of the current PLTU.

Post-Covid-19 economic growth is projected not to turn positive quickly. Likewise, the growth in demand for electricity. So reconsidering, and stopping the construction of a new PLTU will avoid an oversupply of electricity in the next 2-3 years. Because when there is an oversupply of electricity, the costs (government subsidies) are expensive.

The development of the electric vehicle ecosystem needs to be accelerated. Fiscal incentives for electric two-wheelers and restrictions on conventional vehicles are key to successful EV development in Indonesia

Despite the Ministry of Industry targets to increase annual electric vehicles (EV) sales to 400,000 units (passenger cars) and 1,760,000 units (motorcycles) by 2025, the current EV adoption rate is still low, writes Idoan Marciano, one of the authors of the Indonesia Energy Transition Outlook (IETO) 2021. By 2020, electric cars only reached 0.15% (229 units) of the 150,000 units sales/production target while electric two-wheelers at 0.26% (1,947 units) of the 750,000 units sales/production target. Looking at this trend, “it would be very challenging to hit the targets”, says Idoan. 

In order to achieve the targets, it is important to build the electric vehicle ecosystem, which consists of five aspects: (a) charging infrastructure; (b) electric vehicle model availability and supply; (c) public awareness and acceptance; (d) supply chain for batteries and electric vehicle components; as well as (e) supporting policies (including incentives) from the government.

In 2020, derivative regulations of the Presidential Regulation 55/2019 were issued at both the national and municipal levels to provide fiscal incentives and support for charging infrastructure development. This is in line with what the author emphasizes in the report that to increase demand for EV, fiscal -as well as non-fiscal- incentives such as exemptions of VAT, income tax, and import duty or subsidies will be critical. Furthermore, financial incentives such as direct subsidies for developers of public charging stations (SPKLU) and public battery exchange stations (SPBKLU) are also needed to expand charging infrastructure networks in the country.

“Charging infrastructure development is paramount to overcome range anxiety issues. To date, the number of both SPKLU and SPBKLU is still limited, far from the targets. It is also worth noting that the current SPKLU target set on the roadmap will only give a 1:70 ratio (meaning 1 charger to serve 70 EV), much higher than what IEA recommends at 1:10 ratio (or lower when a country is still in its early stages of EV adoption). Responding to this, “the government should aim for a ratio lower than 1:25, emulating what has been applied in high-EV penetration countries such as China, the United States, and Norway”, says Idoan.  

In addition, the author also underlines that the development of the local supply chain is necessary to ensure a self-sustaining EV development. Specifically, local production of lithium-ion batteries -the main component of EV- will be vital to help lower production costs of EV in Indonesia. Currently, the country has been building several production facilities for raw materials extraction and refinement of lithium-ion battery precursors. These facilities are scheduled to start their operations in the next 1-3 years. However, slow progress has been made in the battery cells and packs segments with local companies (including MIND ID, PT Aneka Tambang, PLN, and Pertamina) are still planning the development.

 Production facilities of raw materials extraction and refining process to produce batteries

Located in the Morowali Industrial Area (IMIP)Located in Weda Bay Industrial Area (IWIP)
CompaniesPT. QMB New Energy Materials
A JV between China (GEM Co, Ltd. and Brunp Recycling Technology Co.,Ltd., Tsingshan, Indonesia (PT IMIP), and Japan (Hanwa)		PT. Huayue Nickel Cobalt
A JV between five Chine companies
ProductionNickel and cobalt compounds
Annual Production Capacity
150 kilotons nickel sulphate, 20 kilotons cobalt sulphate, 30 kilotons manganese sulphate, and 50 kiloton nickel hydroxide

60 kilotons nickel and 7.8 kilotons cobalt
240 kilotons of nickel sulphate and 30 kilotons of cobalt sulphate
Total InvestmentArround USD 1 billionArround USD 1.2 billionAround USD 1 billion

Meanwhile, despite the issue of a used battery shortage, the establishment of a local battery recycling facility should be appreciated. “The facility is expected to help bring about cost-efficient EV production while mitigating the environmental impacts that EV development may cause.” 

 

The author further stresses the importance of local EV production, considering that “currently, all electric cars in the Indonesian market are imported as no local automakers have started EV production.” Recent commitments made by some of the global automakers to investing in EV production in Indonesia, however, bring the hope of establishing the EV industry in the country.  

By contrast, at least there are 15 companies with a total production capacity of 877,000 units producing electric two-wheelers. However, demand for electric bikes is currently too low to match the supply. “The government, therefore, needs to provide necessary incentives to increase demand”, notes Idoan. 

Domestic electric vehicles manufacturers

Four Wheelers (or more)Two or Three Wheelers
Local Producer1 company15 companies
BrandMAB (e-bus)
Viar, Gesit, Selis, MIGO, United,
Tomara, ECGO, Volta, Unifly, Electro, Sunrace, Artas, Gelis, Benelli, Keeway, Kymco
Production Capacity1,200 unit/year877,000 unit/year

 

The report also underscores the importance of raising public awareness of EV, its advantages, available incentives, and other useful information such as charging locations to help increase demand for such a new technology. “Demonstration and promotion projects need to be increased through cooperation and partnerships between the government, automakers, transportation companies, and charging infrastructure developers”, says Idoan. 

Finally, outlooking the EV development from 2021 onwards, the report proposes three actionable recommendations for the government. First, “the government needs to prioritize the development of electric two-wheelers as their adoption will be relatively easy due to price compatibility with conventional two-wheeled vehicles.” Additional fiscal incentives or direct subsidies to consumers, and other operational incentives are then necessary to help lower the total cost of ownership.

Second, “to see a significant increase in EV adoption in the country, the government should start restricting the use of conventional cars and motorcycles in major cities”. Lastly, “seeing the growing appetite from international investors, the government needs to ensure technology transfer will take in place through tight collaborations with foreign automakers. At the same time, the government should facilitate cooperation between domestic EV manufacturers and R&D institutions for the commercialization of domestically-made electric vehicles”, he concludes. 

 

Read the full report:

Indonesia Energy Transition Outlook 2021

Author: Idoan Marciano (IESR Energy and Electric Vehicles Technologies Specialist) 

Editor: Pamela Simamora 

Contact: idoan@iesr.or.id

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: 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.

Join us on:

Climate Transparency Report 2020 – Indonesia Virtual launch

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