Energy and Power System Transformation

Energy transition in a nutshell can be interpreted as “changes in the system of energy production and consumption over a certain period of time”

Why is the Transition to Clean Energy Important?

• Affordability of renewable energy
• Solar and wind technologies (and storage systems) are getting cheaper and more competitive
• The rise of small-scale power generation and decentralized generation
• Power generation does not always have to be on a large scale and centralized in load centers
• Digital disruption in the energy sector
• Advances in technological developments such as digitalization and the internet of things (IoT) have also penetrated its application to the energy sector
• Consumer power
• Globally, the demand for electricity usage/supply from clean energy is increasing from the consumer side
• The rise of hybrid and electric vehicles
• The growth of hybrid and electric vehicles worldwide in the last 5 years has increased drastically
• The threat of global warming and climate change
• Global consensus to limit global temperature rise to below 2 degree celcius (even up to 1.5 degree celcius) in the Paris Agreement

Transition To Clean Energy:

Indonesian Context

• Ensuring long-term energy security
• Meeting the target of the National Energy Policy (KEN)
• Meeting climate change targets: Nationally Determined Contribution (NDC)
• Preventing PLN’s financial situation from deteriorating in the future
• Measuring and managing the GRDP reduction potential from fossil energy sources at the national and local levels
• Anticipating the potential for stranded assets