Indonesia Clean Energy Forum (ICEF)
A platform of a constructive and fact-based dialogue to enhance understanding of energy transition
Indonesia has a chance to join the wave of energy transition toward a low carbon energy system that is ongoing at the global level. The current 4D’s trend of decarbonization, decentralization, digitalization, and democratization on today’s power system presenting opportunities for the country to build cleaner, more resilient, cost-effective, and more secure power system, and avoid the risks of stranded assets of existing infrastructure in the near future.
In another side, current trends could bring threats to existing power system if it fails to be addressed properly. The failing cost of wind and solar power technologies, plus the declining cost of energy storage, have made these technologies become more cost competitive in generating electricity to conventional power plants. Their advancement presents serious threats to the conventional business model of the power industry. As these clean energy technologies become affordable by the consumer and easy to deploy as distributed generation, it could disrupt centralize and monopolistic structure of existing power supply system and causing stranded assets that could lead to potential financial catastrophe and a threat to energy security.
We, Institute for Essential Services Reform (IESR), believe that the opportunity and threats of 4Ds need to be anticipated and addressed properly through reforming policy and regulation, improve medium and long-term planning toward low carbon power system, reforming power sector industry, and adjust utility business model, as well as promote more robust private sector investment.
Nevertheless, those transformational changes require a political consensus of various stakeholders in the energy and power sector. This can be achieved through better knowledge and understanding of the key policymakers and stakeholders on the current trends and its consequences to Indonesia power sector. Policy makers need to make an informed decision based on accurate information, science and facts, and taking into consideration political economy realities.
For this reason, IESR initiated the establishment of Indonesia Clean Energy Forum (ICEF) since the end of 2017. ICEF is a platform of a constructive and fact-based dialogue to enhance understanding of energy transition and sharing best practices on policy, regulatory and institutional framework to support a just energy transition in Indonesia power sector. ICEF’s core member comprises of 25 prominent individuals from the various background.
ICEF intends to meet regularly to discuss policy issues under Chatham House rule and offer recommendations to key policymakers. In addition to the ICEF discussion, there is also an annual event, as part of ICEF’s activity, called The Indonesia Energy Transition Dialogue (IETD). IETD is hosted to share the idea and knowledge of, and build an understanding of energy transition to extended stakeholders. The grand launching of ICEF and IETDF 2018 is launched and opened by H.E. Ignasius Jonan, Minister of MEMR, on 15 November 2018.