Dispelling Doubts About the Energy Transition

Energy TransitionRenewable EnergyNuclear Power PlantFossil EnergyEV & Electric Stove

Why Indonesia Must Make an Energy Transition?

Indonesia is already bound by the Paris Agreement

There is an Assumption:
“Indonesia does not need to be fixated on the global energy transition target, and only carry out a transition that is appropriate to Indonesian conditions,”

But in Fact:
As a party that signed the 2015 Paris Agreement, Indonesia has an obligation to participate in efforts to limit the increase in the earth’s temperature to no more than 1.5 degrees Celsius and achieve net zero emissions by 2050.

Explanation:
Indonesia is one of the countries that has ratified the Paris Agreement since 2015. This means that Indonesia is also committed to contributing to global efforts to limit the increase in global temperature to no more than 1.5°C and achieve net zero emissions (NZE) by 2050. Following the global energy transition schedule is important for Indonesia. In addition to contributing to global commitments, it is also to save its own country from a situation of acute dependence on fossil fuels (carbon-lock in), namely a situation where there is too much fossil fuel-based infrastructure that hinders the transition process to cleaner energy.

  1. Following the path and target schedule of the global agreement on energy transition targets does not mean that Indonesia is “dictated” by other countries, but shows that Indonesia keeps the promises it has made.
  2. The Bappenas (2019) study on Low Carbon Development, Low Carbon Development Indonesia in 2019, shows that if Indonesia wants to become a developed country and escape the middle-income trap, then future development must be based on low-carbon development. This means that the use of fossil fuels must be immediately limited and gradually ended.
  3. The longer the use of fossil energy, the more vulnerable Indonesia is to a carbon lock-in situation, which means that the fossil energy infrastructure is too much and will require very large costs to transform it.
  4. With the increasingly short time available to promote various efforts to mitigate global warming and climate change, transforming the energy system immediately is a necessity and a must.
  • “Indonesia is currently a member of the Paris Agreement. Although countries, including Indonesia, are given the space to determine mitigation action efforts and their timing based on their own capabilities, Indonesia has great modalities to carry out economic transformation from fossil fuels to renewable energy more quickly. Especially considering the abundant potential of renewable energy. This not only contributes to environmental quality or emission reduction, but also provides other added value, such as the creation of new green jobs and increasing the percentage of GDP (IRENA 2023).”
    – Arief Rosadi, Climate and Energy Diplomacy Program Manager, IESR

1. The time target for global climate efforts is a collective decision in which Indonesia is included. It is an obligation for Indonesia to comply with the commitments that have been conveyed in international forums. The Paris Agreement clearly states that humanity must maintain the earth’s temperature of 2 degrees by 2100 or try to 1.5 by 2100 since pre-Industrial. Indonesia’s joining as a party to the United Nations Framework Convention on Climate Change (UNFCCC) indicates that the timeline for the global climate commitment target reflects Indonesia’s interests.

2. Indonesia must accelerate its green economy agenda by stopping the use of PLTU. This contributes to Indonesia’s comparative advantage and is able to compete in the global arena when entering the era of established green industry (a case study on this is how China excels in the EV industry and PV manufacturing – Hilton, Isabel 2024)

Description for Children (14-18 years):

Adi and Budi are brothers. They agreed to clean the yard from fallen leaves this afternoon. But until the sun began to set, Budi had not yet arrived. It turned out that Budi was busy playing and chasing butterflies. Adi ended up cleaning the yard alone. He didn’t realize, the leaves continued to fall and piled up more and more until they almost covered his body! The yard remained messy, and Mama gave them a long admonishment. Well, that’s the result of not keeping promises! It can make everything more complicated.

Likewise with Indonesia. Indonesia’s decision to join the global agreement must be kept. The promises in this agreement, if implemented, will actually bring long-term benefits to Indonesia. These benefits include maintaining the sustainability of resources, controlling emissions, and more reliable energy security because dependence on fossil fuel sources, such as fuel imports, is decreasing. By keeping promises to the global agreement, Indonesia will also strengthen its position and relationships in the international world.

Likewise, Indonesia must keep its decision to join the global agreement. If implemented, the promises in this agreement will bring long-term benefits to Indonesia. These benefits include maintaining sustainable resources, controlling emissions, and improving energy security due to reduced dependence on fossil fuels, such as fuel imports. By fulfilling its commitments to the global agreement, Indonesia will also strengthen its position and relationships internationally.

Description for Adults (19 years and above):

Global agreements such as the Paris Agreement are the result of negotiations. In the process of making it, of course countries including Indonesia also voiced their country’s interests. So, when Indonesia decided to sign and commit to achieving the climate targets agreed upon in the Paris Agreement, it was not because Indonesia was dictated by other countries. But because Indonesia took on global responsibility to protect the earth. The goal is clear, so that future generations still inherit and live on an earth that is rich and has sufficient resources.

Indonesia has an Emission Burden that must be Reduced

There is an Assumption:
The responsibility for reducing global emissions must be borne more by developed countries. After all, they have been polluting the earth since the industrial revolution.

But in Fact:
The world is currently trying to reduce the level of emission release and Indonesia is included in the top 10 countries producing the most emissions and has the responsibility to reduce its emissions significantly.

Explanation

  1. The responsibility to reduce global emissions is the responsibility of all countries, especially those that have ratified the Paris Agreement, including Indonesia.
  2. As a party that has signed and ratified the Paris Agreement, Indonesia is bound by a number of obligations to mitigate the climate crisis. This includes adopting appropriate national policies to reduce climate change, by limiting human-generated greenhouse gas emissions (anthropogenic) and protecting and enhancing nature’s ability to absorb these emissions.
  • “Although developed countries have a higher historical burden to reduce emissions, this does not mean that Indonesia is free from responsibility for climate change. In fact, the world is currently striving to reduce the level of emissions released into the atmosphere, and Indonesia is among the top ten largest emitters in the world. Therefore, Indonesia still has an obligation to reduce emissions into the atmosphere, especially those from coal-fired power plants.”
    – Arief Rosadi, Climate and Energy Diplomacy Program Manager, IESR
Description for Children (14-18 years):

Imagine a house with several rooms, such as a terrace, living room, parents’ bedroom, children’s bedroom, kitchen, and back porch. Each person in the house is responsible for one room. With each person’s diverse activities, cleaning each room doesn’t have to wait for each other. Since everyone has agreed to keep the house clean, and each family member is willing to accept responsibility for each room, they must fulfill their responsibilities. When the house is clean and tidy, the occupants will feel comfortable living there.

Description for Adults (19 years and above):

Documentary video reference How coal made us rich — and why it needs to go | TED-Ed

  1. The video explains that burning coal through coal-fired power plants contributes to air pollution and increased greenhouse gas emissions globally. To significantly reduce GHG emissions and keep global temperature rise below 1.5 degrees Celsius, coal use must be phased out.
  2. The energy transition must occur quickly and fairly. A decision to transition quickly will result in lower transition costs and provide communities living in a coal-fired economy with more time to adapt.

Is Renewable Energy Reliable?

Which is more Complicated: Maintaining a Solar Power Plant or a Coal-fired Power Plant?

There’s a common misconception:
“Maintaining solar power plants is complicated and expensive.”

However, in fact:
Compared to coal-fired power plants, solar power plants are easier and cheaper to maintain, and they provide significant environmental benefits by reducing emissions.

Explanation:
Currently, the public has been served by PLN (State Electricity Company). They are unaware of the maintenance process for coal-fired power plants (PLTUs) because they are handled directly by PLN. However, if you want to use a solar power plant (PLTS) privately or communally, you need to perform maintenance yourself.

From a maintenance perspective, coal-fired power plants (PLTUs) are much more complex than solar power plants (PLTS).

Coal-fired power plant maintenance includes:

  1. Maintenance of boilers, turbines, cooling systems, water treatment, and ash handling
  2. Regular inspection and replacement of damaged components
  3. Routine maintenance of emission control systems, such as scrubbers and electrostatic precipitators (Muhammad Nandi Rofandi and Irwanto, 2022)

Furthermore, coal-fired power plants are responsible for increased GHG emissions, which increase the intensity of climate disasters.

Meanwhile, solar power plant maintenance only includes:

  1. Cleaning the panels is done routinely. The cleaning tool is simply liquid soap, similar to cleaning a motorcycle or car (Sun Energy, 2021). Then, wipe them dry.
  2. Solar power plant maintenance can be performed by robots, both manual and automated. The market for solar panel cleaning robots is expected to grow sharply over the next 10 years, and automated robots will become the primary choice for solar panel cleaning globally. This aligns with the growth of the solar energy industry and the need for operational efficiency in the field.
  3. There are no moving parts, so the risk of damage is low. However, it is still important to ensure that water does not enter the installation system.

The use of solar power plants does not involve any combustion, so it does not produce greenhouse gas (GHG) emissions, and is good for the environment.

  • “With the increasing safety standards for solar power plants (both solar modules and inverters), installation and maintenance have become easier, just like with other electronic equipment. Many companies offer solar power plant installation services. Furthermore, maintaining a solar power plant only requires periodic cleaning and checking the condition of the wiring in the medium term. Regarding price, the largest component of a solar power plant is the solar module, and its price has dropped by 66% in the last five years, and is expected to continue to drop in the next few years.”
    – Alvin Putra Sisdwinugraha,    Power Systems and Renewable Energy Analyst, IESR

Description for Children (14-18 years):

Maintaining a solar power plant is similar to caring for our cell phones or tablets. We simply need to clean the screen and keep it out of water. Similar to solar power plants, they don’t require the complex maintenance of other large devices. What we need to ensure is regular inspections of the solar power plant. We simply need to clean the solar panels with liquid soap and ensure there are no minor issues like water entering the system.

Another interesting thing is that solar power plants don’t use combustion like coal-fired power plants, so they don’t emit greenhouse gases that can impact the environment. This makes solar power plants an environmentally friendly choice for our future.

Compared to coal-fired power plants, it’s like managing a large factory. Maintenance requires a deep understanding of various complex systems such as boilers, turbines, cooling systems, and wastewater treatment plants. Maintenance involves regular inspections, repairing damaged components, and monitoring emission controls to reduce environmental impact.

Description for Adults (19 years and above):

Solar power plants (PLTS) are less complex to maintain than coal-fired power plants. Furthermore, they contribute positively to the environment because they don’t involve burning fuel, which produces greenhouse gas emissions. Unlike complex coal-fired power plants (PLTS) managed centrally by PLN (State Electricity Company), solar power plants offer a simpler and more environmentally friendly solution. You can manage their maintenance by regularly cleaning the solar panels, much like you would any other household appliance.

How Effective Are Renewable Energy Variables in Generating Electricity?

There’s a perception:
“The effectiveness of renewable energy sources like solar power (PLTS) and wind power (PLTB) is highly dependent on the weather. Therefore, they are not as reliable as fossil fuels.”

But in fact:
Countries like China, India, and Australia see the challenge of intermittency as something that can be overcome. For example, through energy storage, advanced grids, and integrated energy systems. China even has 887 GW of solar energy capacity, 521 GW of wind power, and 436 GW of hydropower (Enerdata, 2025). They have made variable renewable energy the backbone of their national energy systems.

Explanation:
Every energy source has its own inherent unreliability. Fossil fuels are unreliable due to their limited supply, price volatility, dependence on imports, and negative environmental impacts. Renewable energy, on the other hand, is intermittent, meaning its energy production fluctuates depending on natural factors such as weather and time of day.

Because of their intermittent nature, solar panel installation requires consideration of the solar intensity in a given area. Year-round exposure to sunlight will increase solar panel productivity. While cloudy weather or snowfall can reduce solar panel productivity, winter should not significantly impact the system’s annual energy generation (Blueraven.com, 2023).

Several ways to increase the efficiency of solar panels in generating electricity include (Sistinesolar.com, 2024):

  1. Choosing high-efficiency solar panels (~20%) is a key step in increasing the energy productivity of converting sunlight into electricity more efficiently than standard panels.
  2. To maximize solar panel efficiency, ensure they are properly oriented and tilted. In the Northern Hemisphere, face the panels south to capture maximum sunlight throughout the day. In the Southern Hemisphere, face the panels north.
  3. Be sure to keep solar panels clean to maximize their efficiency. Dust, dirt, leaves, and other debris can accumulate on the panel’s surface, reducing its ability to absorb solar energy. Not cleaning the panels can result in efficiency losses of up to 25-30%.
  4. Use mirrors to increase solar panel efficiency with a reflector system. Strategically place mirrors around the panels to direct and concentrate sunlight onto the panel’s surface, improving light exposure and panel performance.

Furthermore, to improve the reliability of solar energy, technological innovations such as energy storage or battery technology have been introduced to address the issue of intermittency.

In terms of time, a solar panel system can produce energy for 30 years, while an energy storage system like a battery can last up to 15 years. Here are some types of batteries that can be used to address the issue of intermittency in solar energy:

  1. Batteries: Energy storage systems using batteries are one of the most common solutions. Batteries can collect the energy generated by solar panels during periods of overproduction and store it for use when needed, such as during inclement weather or at night.
  2. Thermal Storage Systems (energy.gov, 2024): These systems use the heat generated by solar energy to heat a fluid or other medium. This heat can then be stored in a thermally insulated container and used later to generate electricity through a steam turbine or steam engine.
  3. Flywheels (atoenergi.com, 2024): Flywheels are mechanical devices that use kinetic energy to store energy. Energy from solar panels can be used to rotate the flywheel, which can then release this energy when needed.
  4. Supercapacitors (milkenreview.org, 2024): Supercapacitors are energy storage devices that can store and rapidly release large amounts of energy. They are suitable for applications where energy needs to be stored and released quickly, such as in situations where there are sudden fluctuations in solar energy production.
  5. Hydrogen and Synthetic Fuels (fscec.ucf.edu, 2024): Electrolysis processes can be used to produce hydrogen from water using solar energy. This hydrogen can then be stored and used to generate electricity via fuel cells when solar energy is not available.
  • “People often misunderstand the differences between individual power plants and the overall power generation system. When looking at individual power plants, combining variable renewable energy with battery storage is not yet a reliable and economical solution. However, when looking at the system as a whole, the variability of renewable energy becomes less significant due to the economies of scale of energy storage facilities and the ancillary services provided by other flexibility sources.”
    – Alvin Putra Sisdwinugraha,Power Systems and Renewable Energy Analyst, IESR

Description for Children (14-18 years):

Solar energy is more reliable because it not only comes from unlimited sunlight, but is also more environmentally friendly than polluting fossil fuels. While solar energy is sometimes affected by weather conditions like clouds or rain, new technologies like energy storage and more efficient solar panels have made it increasingly reliable in generating electricity. This differs from fossil fuels, which have limited supplies, unstable prices, and negative environmental impacts like air pollution and climate change.

Can You Answer These Questions?

  1. What do you think is a good energy source for lighting an island?
  2. What is the impact of fossil fuels on the environment?
  3. Are coal reserves available forever?
  4. What will happen if coal reserves run out/are difficult to extract?
  5. What will happen if the price of imported coal increases?

Clean Energy Questions:

  1. What is the impact of solar energy on the environment?
  2. Is solar energy available forever?
  3. What will happen if it rains or becomes cloudy?
  4. What will happen if solar energy is equipped with power storage?

Description for Adults (19 years and above):

Each type of energy has its own advantages and disadvantages. Fossil fuels, such as coal, suffer from limited supply, price volatility, dependence on imports, and negative environmental impacts. On the other hand, renewable energy sources, such as solar energy, are intermittent because their production is affected by natural factors such as weather and time of day.

Solar energy is considered intermittent because its production fluctuates depending on sunlight exposure. However, high solar intensity throughout the year can significantly increase the productivity of solar panels. While adverse weather conditions such as cloudy skies or snowfall can reduce productivity, the impact of winter on the annual energy generation of a solar panel system should be insignificant.

To address the challenges of solar energy intermittency, technological innovations such as energy storage or batteries have been developed. These systems allow for the storage of excess energy from solar panels during the day for use when needed, thereby increasing the reliability of energy supply.

Energy choices for the future must consider not only reliability but also sustainability and long-term environmental impact.

Does a Wind Power Plant Cause Noise Pollution?

The Question arises:
“Are Wind Power Plants Noisy?”

However:
The noise from wind power plants is lower than that from industrial activities or highways.

Explanation:
From the outset, wind turbines (PLTB) are typically built in areas with relatively high wind speeds, so the background wind noise is already noisy before the PLTB is built. With numerous wind turbines, noise is expected, and the noise from the turbines themselves is relatively low (around 55 decibels, roughly the same as an air conditioner exhaust), compared to the noise of a car, which is around 80 decibels. Despite this relatively low noise level, wind turbine noise is always considered by developers in their Environmental Impact Assessment (ESIA) studies and mitigated during the pre-feasibility study by providing a buffer, or minimum distance from residential areas, to minimize disturbance. Noise is a function of distance from the source. Different countries and regions have their own standards regarding the distance.

Furthermore, current wind turbine technology generally incorporates blade designs with serrations or serrations on the trailing edge of the blade to reduce noise and prevent sound from spreading.

Source: Siemens (2018)

On average, a large, land-based utility-scale wind turbine produces noise in the range of 35-45 dB when heard from 300 meters away (the closest distance wind turbines are typically located to a home or building). This means the noise produced is no louder than a typical refrigerator (50 dB) and produces far less noise pollution than average city car traffic (70 dB).

Technically, here are some measures that have been implemented to reduce wind turbine noise (Windexchange.energy.gov, 2024):

  1. Provide a minimum distance/buffer between wind turbines and residential areas.
  2. Use turbines with serrated blades to reduce wind vortices and their associated noise.

    Ensure an Environmental Impact Analysis (EIA) and Environmental and Social Impact Assessment (ESIA) are completed before projects are funded and proceed.

  • “Although noise from wind power plants is relatively low, it remains a major concern in Environmental Impact Assessment (ESIA) studies. Mitigation is carried out from the pre-feasibility study by establishing a buffer or minimum distance from residential areas, as noise is a function of distance from the source. This distance standard varies by country or region. Furthermore, the latest wind turbine technology has adopted a blade design with serrations on the trailing edge to reduce and prevent sound propagation.”
    – Pintoko Aji, Data and Modeling Group Research Coordinator​, IESR

Description for Children (14-18 years):

IESR: “Imagine standing on the side of a busy highway. You’ll hear the sounds of cars, motorcycles, and trucks passing by all the time. The noise from this traffic is very loud and constant, right?”

Participant: “Yes, the noise from the highway is indeed very noisy.”

IESR: “Now, imagine you’re in a field far from the highway, where a wind turbine is running. The noise from a modern wind turbine is about the same as a refrigerator at home, about 35-45 decibels. So, even though there is noise, it’s much quieter and softer than the noise from traffic on the highway.”

Participant: “Oh, so the noise from a wind turbine isn’t actually that loud, compared to the noise from the highway.”

IESR: “That’s right. The noise from a wind turbine is quieter and less disturbing than the noise from cars on the highway. Therefore, wind turbines can be a good option for generating electricity without making noise.”

IESR also noted that the placement of any energy source must consider social and environmental aspects. Likewise, the construction of wind turbines (PLTB) requires careful consideration of their placement distance.

Welcome wind turbines are typically located far from homes. For example, they are placed at least 300 meters from homes so that turbine noise is barely audible. Furthermore, wind turbines today are built with the latest technology, which is more advanced and quieter than previous models. Turbine blades are specially designed to reduce the noise produced during rotation.

Description for Adults (19 years and above):

The placement of each energy source needs to consider social and environmental aspects, likewise with the construction of PLTB, it is necessary to pay attention to the distance of its placement.

PLTB biasanya ditempatkan jauh dari rumah-rumah. Misalnya, PLTB ditempatkan minimal 300 meter dari rumah sehingga suara turbin hampir tidak terdengar dari rumah. Selain itu, saat ini PLTB dibuat dengan teknologi terbaru yang lebih canggih dan lebih sunyi daripada yang dulu. Bilah turbin dirancang khusus untuk mengurangi suara yang dihasilkan saat berputar.

Suara PLTB jauh lebih pelan dibandingkan dengan suara jalan raya atau bandara. Jadi, dalam kehidupan sehari-hari, suara turbin angin tidak akan lebih berisik daripada suara kendaraan yang biasa kita dengar.

Are Nuclear Power Plants Safe?

The Assumption:
“The dangers and risks of nuclear power plants can be minimized and overcome with proper management and governance. Therefore, nuclear power plants should be prioritized as power plants.”

But in Reality:
Even if risk management is possible, nuclear power plants still carry significant risks and often experience delays during construction, making them not the most efficient or rapid option for reducing emissions.

Information summary:

Sources: [Fact Check] Do Nuclear Power Plants Really Pose Dangerous Risks? Here are the Facts (medcom.id)

Explanation:

  1. Even with standard management, nuclear power plants still have risks/dangers. According to Law No. 30/2007 concerning energy, nuclear power plants are considered a last resort among other energy supply technologies.
  2. While fourth-generation reactors are claimed to be a safe technology, there are no examples of commercial projects. This indicates that claims of safety and mature technology have not been proven commercially viable.
  3. Global nuclear capacity (Statista, 2023) has tended to stagnate over the past 10 years.
  4. The average duration of nuclear power plant construction is 7-10 years (Statista, 2023). Nuclear power plants currently under development were decided upon at least 7 years ago, when renewable energy development was not as promising as it is now.
  5. In the past 10 years, the cost of generating renewable energy has been observed to continue to decline (Economist Impact, 2022). This makes renewable energy technology increasingly economically viable.
  6. First-of-a-Kind (FOAK) nuclear technologies, including thorium-MSR reactors, by their very nature pose significant challenges in terms of cost and construction schedule, as illustrated in the figure below.
  7. The study of Gen-III/III+1 projects (OECD, 2020) reveals a worrying trend: the last five FOAK projects have experienced construction delays, exceeding initial estimates by up to 2.3 times. Furthermore, these projects have incurred costs that are 2.3 times higher than their previously announced budgets. Even the latest technologies, such as Small Medium Reactors (SMRs) exemplified by Vogtle 3 and 4, have faced similar challenges as the Gen III FOAK projects. These recurring problems across technologies underscore the need for a critical examination of the risks associated with FOAK nuclear power plants.
  8. The chart below illustrates the magnitude of risk reduction at each phase. However, regarding the FOAK nuclear power plant (NPP), we can imagine the significant risks involved in construction/financing, including permitting risk premiums, given FOAK’s poor track record. Consequently, insurance costs (covering all construction risks, delays in start-up, logistics, stakeholder liabilities, and environmental factors) for the FOAK nuclear power plant’s capital expenditure (CapEx) are likely to be substantial, not to mention initial operational expenditure (OpEx) insurance. Furthermore, with interest rates during construction and the high risk of delays, stakeholders, particularly the EPC, may need to assume high initial risk and hold significant equity stakes to defer payments until closer to COD.
  • “Studies of Gen-III/III+ projects show a trend of nuclear power plant construction delays of up to 2.3 times and costs that have soared 2.3 times higher than initial estimates, including for the latest technologies such as Small Medium Reactors (SMRs). These recurring issues highlight the need for a critical examination of the significant risks associated with the FOAK nuclear power plant project, including insurance costs and the risk of significant delays.”
    – Pintoko Aji, Data and Modeling Group Research Coordinator​, IESR

Description for Children (14-18 years):

Global nuclear power capacity continues to decline. This means the risks posed by nuclear power plants are not commensurate with the costs and energy produced. Furthermore, advances in renewable energy technology have enabled cleaner, safer electricity production (with less security risks than nuclear power plants). The need for clean and safe electricity production can be met by optimizing renewable energy sources such as wind and solar.

Description for Adults (19 years and above):

The use of nuclear power on any large scale also carries significant risks. The most dangerous risk is radiation leakage. The safest and newest nuclear technology currently has no major projects.

In addition to the strict governance of large-scale nuclear power use, financing must also be considered, given the declining global trend in nuclear power capacity and the relatively long construction time of nuclear power plants.

Explanation: Several news stories have raised the issue of nuclear power and highlighted its advantages, including its ability to generate energy at competitive costs (Media Indonesia, 2021):

  1. Although considered by some to be a clean energy source, nuclear power produces radioactive waste (IESR, 2021), which requires strict and detailed project governance. Even with the best project governance, there is no foolproof technology to prevent nuclear power plant accidents (the risk is always present).
  2. In terms of financing, there are two commonly used bases in the financing structure of power plants (OJK, 2014): limited-resource and resource-based. In the Indonesian context, because there are no existing assets for the first nuclear power plant, limited-resource financing, also known as project financing, is used. This means the capital raised is solely supported by the project itself, as is the case with most renewable energy projects. In this case, a separate corporate entity, acting as a Special Purpose Vehicle (SPV), is established to develop and operate the nuclear power plant. This entity is primarily funded by business-based revenues and several investors as sponsors.
  3. As with many operational nuclear power plants (World Nuclear Association, 2024), public (government) financing is leveraged to secure government involvement and ensure majority ownership in the project, thus facilitating access to cost-effective debt. Similarly, nuclear power plant Special Purpose Vehicle (SPV) companies (Indonesia Business Post, 2023) aim to collaborate with State-Owned Enterprises (SOEs) to form joint operational entities, further strengthening government involvement in the project through SOEs. Therefore, in this case, public (government) funds, through SOEs, will be involved in the project.
  4. Therefore, as Indonesians, we need to understand the risks faced by SOEs, shareholders, and other stakeholders, including EPC suppliers for components/construction. Currently, because the nuclear power plant project has not yet reached the licensing and tendering stage by the offtaker, accumulated risks, such as tender risk premiums, construction/financing risk premiums, operational risk premiums, volume risk premiums, and regulatory/unpredictable risks, remain very high, indicating a high risk of default. As the project progresses, assets accumulate, thereby mitigating the risks. However, from the beginning until the COD stage, the rules prohibit the sale of these assets to other parties.
  • “Studies of Gen-III/III+ projects show a trend of nuclear power plant construction delays of up to 2.3 times and costs that have soared 2.3 times higher than initial estimates, including for the latest technologies such as Small Medium Reactors (SMRs). These recurring issues highlight the need for a critical examination of the significant risks associated with the FOAK nuclear power plant project, including insurance costs and the risk of significant delays.”
    – Pintoko Aji, Data and Modeling Group Research Coordinator​, IESR

Description for Children (14-18 years):

The documentary miniseries “The Meltdown: Three Mile Island” (released in 2022) can be used as a resource for supervised communication. This miniseries provides an overview of the accident that occurred at Three Mile Island in 1979 despite the site’s recommended safety protocols. The accident, triggered by a combination of equipment failure, design issues, and worker error, led to a partial meltdown of TMI-2 and a very small off-site release of radioactivity (NRC, 2024). This radioactive release, although very small, led to the permanent shutdown of the TMI-2 reactor area, and the Three Mile Island site was closed for 14 years for cleanup. This incident also prompted the United States government to revise regulations regarding the design of commercial-scale nuclear power plants and protocols for workers at the plant site.

The miniseries “The Days,” available on Netflix, can also be a valuable resource for supporting communication about the risks of nuclear power plant accidents. Focusing on the 2011 accident at the Fukushima Daiichi Nuclear Power Plant in Japan, the series provides a look at three perspectives: the government, corporate organizations, and those who risk their lives in observing the phenomenon.

The Days series will be more relevant to the current situation and context in Indonesia due to its proximity.

Description for Adults (19 years and above):

Every nuclear accident, such as Three Mile Island, Fukushima, or Chernobyl, results in the shutdown of the power plant for decades. Nuclear power plant accidents are similar to airplane crashes (rare, but fatal). As technology advances, renewable energy technologies can be prioritized to produce clean energy.

Is Fossil Fuel Really Cheap?

Without Subsidies, Which is Cheaper, Coal-fired Power Plants or Renewable Energy?

There’s a Perception:
“Renewable energy is expensive and its energy quality isn’t entirely reliable, while coal-fired power plants are still reliable and affordable, so they don’t need to be retired early.”

But in Reality:
The price of electricity from coal-fired power plants (PLTU) appears low because the coal is subsidized through the Domestic Market Obligation (DMO) mechanism, which sets the coal price at USD 70/ton. However, if market prices are used, the cost of electricity from PLTUs can exceed USD 0.09/kWh, which is actually higher than the price of electricity from renewable energy sources such as geothermal and hydroelectric power plants. In fact, renewable energy technologies such as solar power plants (PLTS) combined with Battery Energy Storage Systems (BESS) are already capable of providing electricity at competitive prices of around USD 0.08-0.09/kWh.

Explanation:

The price of electricity from coal-fired power plants (PLTU) is low due to the Domestic Market Obligation (DMO) policy. This policy allows PLTUs to have relatively low and stable generation costs. Without the DMO policy, electricity prices from coal-fired power plants (PLTUs) could triple when global coal prices rise. The price of coal for power generation in Indonesia is currently set at USD 70/ton through the Domestic Market Obligation (DMO) policy. This makes PLTU electricity prices appear lower.

  1. According to the IETO 2024 study, the transformation of Indonesia’s energy sector, which is a source of emissions, with fossil fuels dominating the domestic energy supply at around 90.4 percent, requires a shift to renewable energy as a crucial effort to reduce emissions (IESR, 2023).
  2. The price of electricity from coal-fired power plants (PLTU) is currently lower because the coal used is subsidized through the Domestic Market Obligation (DMO) mechanism at USD 70 per ton (CNBC, 2024). Using market prices, the cost of electricity from coal-fired power plants (PLTU) can reach more than USD 0.09 per kWh (SIEJ, 2021), significantly higher than renewable energy sources such as geothermal and hydroelectric power plants (PLTA). Furthermore, the Ministry of Energy and Mineral Resources (ESDM) has issued a policy regulating the reference coal price (HBA) for December 2023, setting the HBA at a calorific value equivalent of 6,322 kcal/kg GAR, approximately USD 117.38 per ton (Ministry of Energy and Mineral Resources, 2023).
  3. In 2023, the Indonesian government’s energy subsidies reached IDR 159.6 trillion, including subsidies for fuel and LPG (95.6%) and electricity subsidies (64%) (Katadata, 2024).
  4. Meanwhile, renewable energy received no support; instead, its prices were consistently challenged to compete with those from coal-fired power plants (Simanjuntak, Uliyasi, 2023).
  5. On the other hand, electricity prices from renewable energy continue to decline. The 2021 Scaling Up Solar Potential study by IESR and BNEF showed that solar electricity prices in Indonesia have fallen by 76% since 2015 (Bloomberg NEF, 2021). With policy support that favors renewable energy development, prices will be further reduced, and electricity from renewable energy will become more economical and competitive.
  6. Early retirement of coal-fired power plants (PLTUs) from their natural retirement years is considered to be less costly than extending the lifespan of coal-fired power plants with the addition of carbon capture and storage (CCS) technology (Simanjuntak, Uliyasi, Kurniawati H. 2023).
  • “The cost of electricity from coal-fired power plants in Indonesia is indeed cheaper than the global average, ranging from 4 to 6 cents per kWh. However, this cost is made possible by policies and regulations that support low domestic coal purchases (DMO price cap of USD 70 per ton), government guarantees for coal-fired power plants (PLTUs), and less stringent emission and environmental pollution standards.”
    – Deon Arinaldo,     Energy System Transformation Program Manager, IESR

2. Energy infrastructure, such as power plants, is more than three decades old. Therefore, when discussing costs, we must also consider technological developments, costs, and long-term investment trends.

3. Renewable energy investment costs are becoming increasingly affordable. Between 2010 and 2020, solar PV investment costs fell by 90%, wind turbines by 60%, and batteries by 90% (BNEF, 2020). This cost decline is due to increasingly massive manufacturing scales and ongoing technological innovation. Therefore, these costs are expected to continue to decline in the coming decade.

4. Conversely, thermal power generation technologies such as coal-fired power plants (PLTU), gas-fired power plants (PLTG), and even nuclear power plants (TNTN) are experiencing an upward trend in costs. These costs can rise due to the need to reduce pollution and other externalities (CCS) as well as the increasingly limited availability of funding for fossil fuel power plants. NPP costs are rising due to the increasing complexity of the technology, as well as the unproven nature of the technology at scale, resulting in numerous unidentified development risks (which increase investment costs).

5. It is clear that generating electricity from renewable energy, especially solar, wind, and even battery-assisted energy, will be cheaper in the coming years. Therefore, the electricity system needs to be designed to accommodate renewable energy and its intermittency to remain competitive.

6. This requires a paradigm shift and perspective in electricity system planning and operation to maintain or even improve system reliability and lower costs.

Description for Children (14-18 years):

  1. When we buy something, the price we pay may not be the market price. Many factors can influence this, one of which is when another party is willing to pay part of the price. In government parlance, this is called a subsidy. This occurs when the government, in some way, pays for a portion of an item used by the public. Examples of subsidies include fuel for vehicles, LPG (green gas) cylinders, and electricity.
  2. These price subsidies aim to help underprivileged communities afford fuel, LPG, and access electricity. However, the price after these subsidies makes the market price appear low. However, when calculated at the original price (minus the subsidy), fossil fuels are expensive.
  3. Indonesia’s dependence on fossil fuels, including coal, poses significant risks: threatened energy security, impacted by fluctuating fossil fuel prices, and threatened by declining national income due to the loss of the global fossil fuel market. You can also watch an animated video to understand the world’s condition if fossil fuels were stopped and replaced by renewable energy on YouTube Kok Bisa, entitled “What Would Happen If We Eliminated All Fossil Fuels?” (CASE Indonesia, 2023)”.

Description for Adults (19 years and above):

  1. The price of electricity from coal-fired power plants (PLTU) is low due to the Domestic Market Obligation (DMO) policy. This policy allows coal-fired power plants to have relatively low and stable generation costs. Without the DMO policy, electricity prices from coal-fired power plants can triple when global coal prices rise.
  2. The current cost of electricity from coal-fired power plants in Indonesia is around 4-6 cents/kWh (lower than the global average).
  3. This cost is possible due to policies and regulations that support the purchase of low-priced domestic coal (DMO price cap of USD 70/ton), government guarantees for coal-fired power plants (PLTU) and less stringent emission and environmental pollution standards.
  4. BNEF and IESR calculate the current LCOE of solar and battery power in Indonesia at $113-251/MWh (2020 real values). This value is already competitive with diesel power plants, which can reach $200/MWh in remote areas due to high fuel costs.
  5. Solar power plants are likely to become cost-competitive with new coal-fired and gas-fired power plants within this decade. The LCOE of solar energy is expected to fall to $63-155/MWh in 2025 and to $49-119/MWh in 2030. One factor in the price decline is the decline in the price of lithium-ion batteries.

Will Coal Reserves Remain Competitive in the Future?

There’s an Assumption:
“Coal reserves are sufficient for another 500 years.”

However, in Reality:
Climate crisis mitigation policies will impact the future competitiveness of products, where emissions and environmental costs of a product will be a determining factor. Economies powered by fossil fuels, especially coal, will become increasingly uncompetitive. The potential for declining demand in the future makes coal uneconomical to extract because production costs are not commensurate with low market prices.

Explanation: This statement needs to be further explored based on consumption assumptions. Is it dominant or constant? If population and industrial growth increase, the demand for coal will continue to rise.

Furthermore, not all coal reserves can be extracted because they are located in difficult-to-reach locations. Therefore, the government and coal businesses need to pay attention to energy transition trends that encourage increased use of renewable energy.

  1. Energy transition policies and carbon trading will affect export demand and coal use. IESR predicts a decline in coal export demand after 2025-2030 (IESR, 2023).
  2. Furthermore, international trade has established policies for calculating product emissions. For example, the implementation of the Carbon Border Adjustment Mechanism (CBAM) (IISIA, 2024) involves adding tariffs or import duties to imported goods with high emissions into the European Union (EU). The tax will be effective on January 1, 2026, requiring carbon-intensive industries such as aluminum, iron and steel, cement, fertilizers, and electricity to reduce their emissions if they want to compete in the European market.
  • “Coal utilization is not only threatened by the climate crisis and tightening environmental regulations, but also because renewable energy sources can replace coal at lower costs. The average global cost of generating electricity from solar and wind power fell from 35 cents/kWh to 4 cents/kWh between 2009 and 2019. Meanwhile, coal-fired power plants still cost around 10.9-11 cents/kWh (Ourworldindata.org, 2020).”
    – Deon Arinaldo, Energy System Transformation Program Manager, IESR

2. The cost of electricity from coal-fired power plants in Indonesia is indeed cheaper than the global average, ranging between 4-6 cents/kWh. However, this cost is made possible by policies and regulations that support low domestic coal purchases (DMO price cap of USD 70/ton), government guarantees for coal-fired power plants (PLTUs), and less stringent emission and environmental pollution standards.

3. Although coal-fired power plants (PLTS) are still supported in Indonesia, renewable energy sources such as solar power plants (PLTS) remain competitive at this price. IESR and BNEF project that by 2027, even the cost of electricity from solar power plants plus 25 percent battery capacity will still be cheaper than that of new coal-fired power plants.

4. This means that coal demand, particularly for power generation, is certain to decline. Indonesia’s main coal export destinations, such as China and India, are already enjoying significantly lower electricity costs from renewable energy sources than coal. Countries around the world have begun the transition process to prevent the coal industry from being immediately shocked if demand suddenly drops drastically.

Description for Children (14-18 years):

Name one garden that’s relevant to you?

“Imagine if our home were like the Bogor Botanical Gardens. Lots of beautiful plants, and animals living comfortably there. Every day, we breathe clean air that helps us live healthily. Then, suddenly, one day someone comes and sets fire to one side of our garden. The plants and animals instantly die. So, to prevent something like that from happening, we’ll build a tight fence and only people who have been screened and aren’t carrying anything dangerous will be allowed to enter the garden.”

“Many countries around the world are doing the same. They’ve already made sure their homes don’t emit significant emissions with renewable energy. They also want the goods entering their homes to come from low-emission production processes. Eventually, these policies will influence countries, even those with abundant coal reserves, to abandon the use of coal if they want their products to remain competitive in international trade.”

Description for Adults (19 years and above):

“While there is confidence that coal reserves will be sufficient for 500 years, this needs to be further refined by considering assumptions about future consumption. Industrial growth and global renewable energy policies can alter this dynamic.

Global policies such as carbon trading and the European Union’s Carbon Border Adjustment Mechanism (CBAM) will impact coal demand and exports. Predictions indicate a significant decline in coal export demand after 2025-2030.

The coal industry needs to adapt to the energy transition and declining global demand. This is a serious challenge that requires adaptation and innovation to maintain economic and environmental sustainability.”

Do Electric Vehicles and Equipment Reduce Emissions?

Are Hybrid Vehicles Better Than Electric Vehicles?

The Perception:

Myth: “Hybrid vehicles are better for Indonesia’s situation, which is still dominated by fossil fuel infrastructure.”

But in fact:
The use of hybrid vehicles will extend the life of fossil fuels in Indonesia, while Indonesia aims to achieve net zero by 2060 or sooner. Therefore, if there is a change in the fuel used, fossil fuels will no longer be used.

Explanation:

  1. To reduce Indonesia’s GHG emissions, the involvement of all sectors, including electricity, transportation, and industry, is required. Vehicle electrification is one strategy that can be implemented in the transportation sector.
  2. Of course, this must be accompanied by “cleaning up” the upstream sector, namely electricity generation, which is currently dominated by fossil fuel power plants.
  3. These two strategies (converting power plants to renewable energy and accelerating electric vehicle penetration) must be implemented simultaneously. If we wait for our electricity sources to become renewable energy-based before adopting electric vehicles, we will be too late to seize the opportunity to reduce GHG emissions from the transportation sector.
  4. Electric vehicle emissions are lower than those of fuel-based vehicles (assuming they are powered by coal).
  5. Fuel-based vehicles emit 179.2 g CO2/km (IESR, 2023). With the same mileage calculation, a hybrid electric vehicle using both gasoline and coal as fuel emits approximately 76.8 g CO2/km..
  6. Meanwhile, electric vehicles (not hybrids) that are fueled by coal as the main power source emit emissions of 67.8 grCO2/km.
  • “Like it or not, there will be a shift in business from large players, and this is not only happening in the transportation sector but also in other sectors, such as renewable energy generation. There is another, cheaper and more impactful solution: using public transportation. The use of public transportation will be more impactful because of its capacity to accommodate more people and can also reduce congestion problems.”
    – Deon Arinaldo, Energy Transformation Systems Program Manager, IESR

Description for Children (14-18 years):

  1. Ideally, efforts to reduce emissions in the transportation sector should be comprehensive, resulting in significant emissions reductions. In addition to the use of electric vehicles, electricity sources must also be cleaned up by switching to renewable energy sources.
  2. If electricity is still derived from coal, pollution from electric vehicles remains lower than from oil-fueled vehicles. However, pollution can be zero if electric vehicles use renewable energy.

Description for Adults (19 years and above):

  1. Transportation decarbonization should be carried out comprehensively, from upstream to downstream. However, this doesn’t mean we should wait until one sector is decarbonized before moving on to another.
  2. The adoption of electric vehicles can be carried out in conjunction with efforts to accelerate the adoption of renewable energy in the grid.
  3. Electric vehicle adoption must also be accompanied by other efforts, such as adopting the ASI (Avoid-Shift-Innovate) principle in trip planning and promoting mode-shifting, which encourages people to switch to public transportation.

Does an Induction Cooktop Produce a Different Taste?

There is a Question:
“Does an induction stove change the taste of food?”

But in fact:
For certain cooking methods, especially those involving grilling, using an induction stovetop doesn’t require replacing your entire cookware and won’t significantly change the taste of your food.

Explanation:

Technically, induction stoves only heat food, so they won’t affect the taste (Alinea.id, 2022). As for equipment, many cookware now uses iron and stainless steel, making them suitable for induction stoves.

There is no scientific explanation for the relationship between the type of energy used and the taste of food; rather, it’s related to the risk of chemicals contaminating the home. For example, using a gas stove can potentially pollute the home with carbon monoxide, formaldehyde, and hydrogen cyanide.

Gas stoves are considered hazardous by the American Public Health Association because they release high levels of nitrogen dioxide, which can affect the health of adults, children, and people with sensitive respiratory conditions such as asthma. Using a gas stove also increases the risk of fire due to the presence of open flames. Therefore, many people are turning to electric stoves as a safer and more popular alternative (Foodrepublic.com, 2023).

Some factors that affect the taste of food are (mccormickfona.com, 2022):

  1. Age. Around age 45, taste buds begin to deteriorate, and by the time you reach your late 50s, you may begin to notice a decline in your sense of taste. However, your ability to sense sour tends to be better than other tastes. In older adults, the threshold for sweet, salty, and bitter can be up to 2.5 times higher than in younger people.
  2. Hunger. Hunger can influence food preferences by increasing sensitivity to sweet and salty tastes.
  3. Time and type of food. Taste sensitivity can decrease one to four hours after eating or drinking, depending on the type of food; spicy foods, such as chili sauce, can have a greater effect than bland foods, such as milk.
  4. Temperature. Changes in temperature can affect your taste buds’ sensitivity to various food flavors. As the temperature rises, sensitivity to sweet tastes tends to increase, while salty and bitter tastes tend to decrease. Conversely, as the temperature drops, sensitivity to bitter tastes tends to increase, while sour tastes tend to decrease.
  • “Using an electric stove doesn’t change the taste of food because both electric and gas stoves essentially provide heat to the cooking utensils, not the food itself. To ensure more comfortable cooking, there are cooking utensils that should be discontinued when switching from a gas stove to an electric stove, such as a wok. Furthermore, using an electric stove actually reduces the harmful gases produced when cooking with a gas stove.”
    – Faris Adnan Padhilah, Energy Demand Management Research Coordinator, IESR

Description for Children (14-18 years):

Imagine boiling water in an electric kettle or boiling water in a pan on a gas stove. Does it feel different? Both methods achieve the same result. Water is heated to a boil by heating the container. This heating method differs; some use flame, while others use induction, similar to electric and gas stoves.

Description for Adults (19 years and above):

Discuss the considerations adults typically take into account when choosing a stove for cooking. For example:

  1. Maintenance (induction stoves are cheaper to maintain). Gas stoves require more attention to mechanical parts and gas components such as burners, regulators, and hoses. Meanwhile, induction stoves focus more on maintaining the glass surface and electronic components.
  2. Safety (gas stoves have a high fire risk). Body parts are less likely to catch fire when touching the burner, reducing the potential for burns.
  3. Health (gas stoves contain carbon monoxide, formaldehyde, and hydrogen cyanide).
  4. Energy efficiency (induction stoves are more efficient, wasting less energy and saving money in the long run). A study by EPRI (Micah Sweeney, Jeff Dols, Brian Fortenbery, and Frank Sharp 2014) compared the efficiency of gas and electric stoves. The results: Induction stoves have an efficiency of 84 percent, electric stoves with coil elements and standard smooth surfaces have an efficiency of around 74 percent, and gas stoves have an efficiency of around 40 percent. This means (Leafscore.com, 2021), when cooking with gas, about 60 percent of the energy is wasted, compared to only 16 percent with an induction stovetop and 26 percent with a smooth-surface electric stovetop. In one experiment, an induction stovetop can boil water in just 5.8 seconds, while a gas stovetop takes 8.3 seconds.
  5. Maintenance (induction stovetops are cheaper to maintain). Gas stoves require more attention to the mechanical parts and gas components such as the burner, regulator, and hose. Meanwhile, induction stoves focus more on maintaining the glass surface and electronic components.