Peluncuran & Diskusi Laporan Perencanaan Sistem Tenaga Listrik yang Selaras dengan Persetujuan Paris

Siaran Tunda

Pendahuluan 

Indonesia telah meratifikasi Perjanjian Paris melalui UU No. 16/2016. Sebagai hasilnya, Indonesia terikat secara hukum untuk berkontribusi dalam perjuangan global perubahan iklim melalui upaya dan tindakan yang ambisius dalam memitigasi emisi Gas Rumah Kaca (GRK) dan membatasi peningkatan suhu global rata-rata di bawah 1,5 derajat C. Dalam salah satu hasil model iklim IPCC untuk jalur yang kompatibel dengan 1,5 derajat C, emisi Gas Rumah Kaca (GRK) global harus turun 45% pada tahun 2030 dibandingkan dengan tahun 2010 dan mencapai emisi nol bersih pada tahun 2050. Saat ini, Indonesia termasuk dalam 10 besar penghasil emisi gas rumah kaca (GRK) dan masih diproyeksikan untuk meningkatkan emisinya, dengan sektor energi sebagai penyumbang GRK tertinggi pada tahun 2030. 

Dengan pangsa pembangkit listrik sebesar 66% pada tahun 2021, pembangkit listrik tenaga batubara telah menjadi penyumbang utama emisi sektor energi (sekitar 40%), dan bahkan 90% dari emisi sektor listrik. RUPTL PLN terbaru (RUPTL hijau) masih mempertimbangkan penambahan 13,8 GW PLTU Batubara dalam satu dekade ke depan. Porsi energi terbarukan hanya akan meningkat menjadi sekitar 24% pada tahun 2030 menurut rencana yang sama, yang mengakibatkan peningkatan emisi sektor listrik (dan sektor energi) secara keseluruhan. Dengan demikian, hal ini jelas bertentangan dengan mandat Perjanjian Paris. 

Menurut studi Institute for Essential Services Reform (IESR), secara teknis dan ekonomis, emisi sektor energi di Indonesia layak secara teknis dan ekonomis agar sesuai dengan Persetujuan Paris dan mencapai emisi nol pada tahun 2050. Salah satu tonggak penting adalah bahwa pangsa energi terbarukan dalam pembangkit listrik harus mencapai hampir setengahnya pada tahun 2030. Pada saat yang sama, elektrifikasi sektor transportasi dan industri juga akan meningkatkan pertumbuhan permintaan listrik total dan menciptakan ruang serta fleksibilitas yang diperlukan untuk integrasi energi terbarukan (variabel) yang tinggi. Dengan pertumbuhan permintaan listrik yang tinggi, kapasitas energi terbarukan dan pengembangan jaringan serta interkoneksi harus dikerahkan dalam kecepatan yang belum pernah terjadi sebelumnya, mencapai 140 GW pada tahun 2030 (peningkatan empat belas kali lipat dari kapasitas saat ini). 

Namun, integrasi energi terbarukan yang tinggi dalam sistem jaringan listrik berbasis kepulauan di Indonesia dianggap menantang. Perencanaan sistem tenaga listrik saat ini masih melihat sebagian kecil energi terbarukan, terutama energi terbarukan variabel (surya dan angin), yang akan beroperasi dalam sepuluh tahun ke depan. Selain itu, PLN sebagai operator jaringan listrik memiliki pengalaman yang terbatas dalam mengoperasikan jaringan listrik dengan porsi energi terbarukan yang tinggi. Studi dan pemodelan yang menunjukkan analisis tekno-ekonomi yang terperinci tentang pengoperasian energi terbarukan dengan porsi yang tinggi dalam sistem jaringan listrik nasional juga masih terbatas. 

Masih banyak tantangan lain yang perlu dihadapi. Hal ini menunjukkan pentingnya analisis komparatif perencanaan sistem tenaga listrik saat ini dengan perencanaan yang selaras dengan jalur 1,5 derajat C. Memahami perbedaan dalam hal biaya, tantangan teknis, pengurangan emisi, dan kelayakan dapat memperluas pilihan dalam perencanaan sistem tenaga listrik di masa depan di negara ini. Lebih jauh lagi, sebagaimana studi IESR Dekarbonisasi Mendalam Sistem Energi Indonesia menunjukkan, Indonesia dapat memperoleh manfaat tambahan seperti harga yang lebih kompetitif serta manfaat sosial-ekonomi lainnya (pekerjaan ramah lingkungan), sambil mengatasi krisis iklim secara bersamaan. 

Dengan latar belakang ini, IESR telah menyelesaikan analisis perencanaan sistem tenaga listrik, rencana perluasan kapasitas, dan uji keandalan sistem tenaga listrik dengan menggunakan PLEXOS dan DIgSILENT yang bertujuan untuk mengintegrasikan energi terbarukan untuk mengurangi emisi GRK secara keseluruhan dari sektor ini. IESR akan mengadakan webinar untuk meluncurkan laporan tersebut berjudul “Enabling high share of renewable energy in Indonesia’s power system by 2030: Alternative electricity development plan compatible with the Paris Agreement”, dan mengundang para pemangku kepentingan terkait untuk berdiskusi dan menyusun rekomendasi untuk dekarbonisasi sistem tenaga listrik. 

 

Tujuan

Tujuan dari peluncuran laporan dan webinar diskusi adalah sebagai berikut: 

  1. Untuk memberikan alternatif perencanaan sistem tenaga listrik berbasis penelitian yang dapat mendorong kemajuan Indonesia dalam upaya pengurangan emisi sektor energi kepada pemangku kepentingan yang lebih luas. 
  2. Untuk memberikan masukan bagi perencanaan sistem tenaga listrik yang diperbarui (RUPTL 2023-2032), yang diharapkan akan berjalan pada awal tahun 2023 
  3. Untuk mendiskusikan potensi tantangan dan peluang untuk mengatasi tantangan dalam mengintegrasikan pangsa energi terbarukan yang tinggi dalam sistem tenaga listrik. 

Materi Presentasi

Akbar Bagaskara – Penulis Studi, Peneliti Sistem Ketenagalistrikan, IESR

“Enabling High Share of RE in Indonesia Power System”

221124-Alternative-RUPTL-1

Unduh

Dadan Kusdiana – Plt Dirjen Ketenagalistrikan, Kementerian ESDM

“Enabling High Share of RE in Indonesia Power System”

221124-0016-PPT-Keynote-Speech-IESR-1

Unduh

 

COP27: The Race to Zero Emissions in 2050

Egypt, November 9, 2022 – The ambition of countries’ climate commitments to achieve their net zero is crucial by the middle of this century. The earth’s temperature has risen significantly to 1.1 degrees Celsius after pre-industrial levels. Measuring the policies and strategies of countries to achieve zero emissions needs to be done to encourage climate mitigation in line with the Paris Agreement.

Energy Transformation Program Manager of the Institute for Essential Services Reform (IESR) , Deon Arinaldo, at the COP27 side event in Sharm El-Sheik, Egypt, with the theme “Net-0 scenarios and How to Get Them Right” organized by the International Network of Energy Transition Think Tanks (INETTT) explained, Indonesia has realized the urgency of the energy transition. It can be seen from the existence of a low-carbon development strategy from the Ministry of National Development Planning of the Republic of Indonesia. The plan will show significant benefits when Indonesia achieves its conditional Nationally Determined Contribution (NDC) target by 2030. It starts with higher economic growth, job creation, and improving the quality of health.

However, Indonesia still provides significant fossil energy subsidies. Deon emphasized that fossil energy subsidy policies differ from efforts to make an energy transition and achieve decarbonization in the middle of this century.

“The Indonesian government’s policy of providing subsidies to shield the public will burden the state budget, especially with rising commodity prices in 2022. Energy subsidies are an “obstacle” to energy transformation, reformulation of energy subsidies is a priority agenda for the government,” said Deon.

This needs to be done by considering the best policy scenario for reducing emissions in the energy system, based on the IESR study entitled “Deep Decarbonization of Indonesia’s Energy System.” Deon recommends three stages of the best policy scenario: bending the greenhouse gas emissions curve and peaking emissions by 2030. Then,  removing a significant share of emissions through energy system transformation by 2045, achieving zero emissions through an increase in green synthetic fuel production, and decarbonize industry sector by 2050.

“With this strategy, achieving zero emissions by 2050 is technically and economically feasible. It opens up opportunities to improve climate policy. Decarbonization efforts have to simultaneously ramp up the overall energy system. This decade (2020-2030) is the critical period,” explained Deon.

Nhien Ngo To, Vietnam Initiative for Energy Transition, said Vietnam had implemented a strategy of reducing emissions to net zero emissions by 2050. The plan sets the overall goal of adapting proactively and effectively. Then, minimize the vulnerability and damage caused by climate change.

“Unfortunately, there are still some challenges to face. Such as inefficient use of energy, high energy intensity, lack of financing, lack of skilled workforce for energy transition, and gaps in the coordination of key stakeholders,” said Nhien Ngo To.

Energy Programme Manager and Climate Finance Lead at GreenCape, Jack Radmore, said South Africa has a reasonably mature policy sector and plans related to a green economy and decarbonization. It could be seen in the national climate change response strategy since 2004, which has been improved and adapted over the years.

“South Africa has established a committee to accelerate the energy transition. The government has also adopted more ambitious emission reduction targets. Considering that 90 percent of electricity in South Africa still depends on coal-fired power plants with more than 600,000 people working in the mining sector,” stated Jack Radmore.

Al Kumba, Energy Transition Director, SHURA, stated that Turkey had taken significant steps in terms of decarbonizing the electricity sector over the past decade. Currently, 50 percent of installed power in Turkey comes from renewable energy. In terms of power generation, around 40 percent comes from renewable energy. However, Turkey’s energy mix is ​​still dependent on fossil fuels, only about 16 percent of which is supplied by renewable energy.

“Decarbonization is important for Turkey. Several concrete steps to realize decarbonization, such as Turkey has ratified the Paris Agreement in October 2021 and announced its ambition to achieve carbon neutrality by 2053. Turkey also has a green action plan to build its ports more environmentally friendly and expand forests and protected areas. Turkey is one of the countries that take the lead in fighting desertification and erosion,” said Al Kumba.

APLSI Declares Just Energy Transition, Supports Acceleration of Green Energy Mix

press release

Jakarta, 15 November 2022- Presidential Regulation No. 112/2022 on the Acceleration of Renewable Energy Development for Electricity Supply mandates the Ministry of Energy and Mineral Resources (MEMR) to develop a roadmap for the early retirement of the coal-fired power plants (CFPP). It is in line with Indonesia’s commitment to the Global Coal to Clean Power Transition declaration at the Conference of the Parties 26 Summit (COP26 Summit), which considers the early retirement of coal-fired power plants in the 2040s, with international funding and technical assistance, and achieving the Net Zero Emission (NZE) target by 2060 or earlier as stated by President Joko Widodo.

The Institute Essential Services Reform (IESR) views that the government’s goal needs to be supported by various parties, including Independent Power Producers (IPP), who currently operate more than 15 GW of power plants in Indonesia.

“Indonesia Independent Power Producers (APLSI) supports the Government of Indonesia’s plans and policies that encourage decarbonisation and energy transition. We are ready to transform to continue contributing to an independent, increasingly environmentally friendly and sustainable national electricity, to support the Indonesian Government’s Net Zero Emission target,” said Arthur Simatupang, Chairman of APLSI, at the declaration of the Just Energy Transition Initiative by Indonesian Power Producers organized by IESR in collaboration with APLSI in conjunction with the 2022 Indonesia G20 Summit in Bali. 

“APLSI wishes to optimize the role of the private sector as a government partner in building a reliable electricity system based on just energy transition by diversifying investment in power plants from various renewable energy sources whose potential is huge in Indonesia,” Arthur explained.

It has also been stated in the Expression of Interest between APLSI and the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) at the Kadin Net Zero Hub event at the B20 Indonesia Summit. At that event, Arthur mentioned that his party had signed an agreement to conduct an intensive joint study on the diversification of power plant investment so that the role of the private sector would be optimal in realizing low-carbon economic growth by partnering with the government in building a reliable, independent electricity system, and a just energy transition.

Furthermore, IESR said that a just energy transition would run with the availability of space for renewable energy development, including by terminating the operational period of CFPP more quickly.

“The IESR study found that to be consistent with limiting temperature rise to 1.5°C, all CFPPs, that are not equipped with carbon capture, must be retired before 2045. In the period 2022-2030, at least 9.2 GW of power plants must be retired, of which 4.2 GW comes from private electricity, without which it will be difficult to achieve NZE,” said Fabby Tumiwa, Executive Director of IESR.

On the same occasion, Rida Mulyana, Secretary General, MEMR, said the importance of partnership to decarbonise the energy system. He explained that based on Presidential Regulation 112/2022, Indonesia plans not to build new coal-fired power plants after 2030 except those that are committed or under construction.

Furthermore, Wanhar, Director of Electricity Program Development at the Directorate General of Electricity, MEMR outlined a roadmap for the early retirement of coal-fired power plants in Indonesia.

Through his presentation, Wanhar explained that the government also took various steps to achieve the NZE 2060 target, including ensuring the retirement of CFPP owned by IPP after the power purchase agreement (PPA) was ended, and Combined Cycle PP retired after the age of 30.  Furthermore, starting in 2030, there is an increasingly massive development of solar power plants, followed by wind power plants both on land and offshore starting in 2037.

However, Wanhar emphasized, several provisions need to be fulfilled in terminating the operational period of coal-fired power plants in Indonesia.

“Retirement of CFFP can only be done once grid reliability is ensured, with substitution from renewable replacement and/or transmission system installation, the assurance of just transition of a fair energy transition. There should not be any negative social impact from coal plant early retirement, affordable renewable energy generation prices, and the availability of international financing support,” Wanhar explained.

Based on IESR’s “Financing Indonesia’s Coal Phase-out” study with the Center for Global Sustainability, University of Maryland, to retire 9.2 GW of coal-fired power plants by 2030, Indonesia needs international funding support to meet the cost of retiring the power plants, around USD 4.6 billion by 2030. 

Supporting decarbonisation efforts in the power sector, the Government of Indonesia will work with the International Partners Group (IPG) to realize investment plans to support the early retirement of coal-fired power plants as well as other low-carbon technologies. The cooperation will support the achievement of Indonesia’s electricity system decarbonisation targets, including achieving peak electricity sector emissions of 290 million tonnes of CO2 by 2030, preparing CFPP projects that must be retired early, and ensuring the achievement of a renewable energy mix of at least 34% by 2030.

“For the early retirement of coal-fired power plants, especially those owned by IPPs, to take place with the principle of just energy, the government must form a national commission or task force involving relevant government agencies by the end of this year. Its tasks include comprehensively assessing the list of coal-fired power plants that have the potential to be retired immediately, as well as renegotiating with IPPs,” explained Deon Arinaldo, Energy Transformation Programme Manager, IESR.

Deon added that CFPP contract negotiations between PLN and IPP must begin by considering the potential for additional costs without jeopardizing the investment climate in Indonesia. 

“The government also needs to assess the appropriate financing mechanism to retire coal-fired power plants owned by private power producers. The financing mechanism also needs to support the link between the financing of early retirement of CFPP and investment in renewable energy so that it can mobilize international financial support,” he concluded.

The Declaration of Supporting the Roadmap of Just Energy Transition was carried out to coincide with the G20 Summit. This is expected to provide a positive signal for the Indonesian Government’s leadership at the G20, which also highlights the energy transition or the transition from polluting energy to renewable energy as one of the main issues.

“Indonesia’s leadership in conducting early retirement of power plants to accelerate the energy transition will create a good precedent for other G20 countries.  The spirit to accelerate the end of CFPP operations through the declaration of IPPs  supported by the government and PLN will be an example for India, which will hold the G20 presidency in 2023 and become an example for other ASEAN countries in Indonesia’s leadership in ASEAN in 2023,” concluded Fabby Tumiwa.***

Points of declaration:

Support the Roadmap for a Just Energy Transition in Indonesia

  1. Willing to transform to continue to contribute to an independent national electricity that is increasingly environmentally friendly and sustainable to support the net zero emission target.
  2. Support the Indonesian government’s plans and policies that encourage decarbonisation and energy transition.
  3. Diversify investment in power generation from various alternative renewable energy sources, in which Indonesia has enormous potential.
  4. Committed to opening up opportunities for renewable green energy sources and a sustainable energy supply ecosystem.
  5. Optimizing the role of the private sector as a government partner in building a reliable electricity system and a just energy transition. 

Approaching the G20 Summit, Government Needs to be Consistently Calling for and Raising Climate Ambitions

Jakarta, 9 November 2022-The journey of the Indonesian G20 Presidency will end after the G20 summit in November 2022. Therefore, Indonesia needs to show strong attention to climate mitigation efforts, by increasing its commitment to significantly reducing greenhouse gas (GHG) emissions. The Climate Transparency 2022 report shows Indonesia’s power sector which is dominated by fossil fuels (81%) and produces 62% of its electricity from coal, making the energy sector still the largest contributor to GHG emissions (43%), followed by the transportation sector (25%) in second place in 2021.

Besides that, Indonesia’s emission intensity of the power sector increased throughout the 2016-2021 period by 5.5% to 784.8 gCO2/kWh. This number is greater than the average emissions in the energy sector of G20 countries in the same period which decreased by 8.1% to 444.7 kWh. This is presumed economic activity that has returned rapidly after the pandemic. 

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform, believes that the G20 countries which are responsible for 85% of the world’s GHG emissions, must take a greater role in drastically cutting GHG emissions. Globally, they must cut approximately 45% of GHGs at 2010 levels by 2030. Unfortunately, until now, none of the G20 countries has met this target, including Indonesia, which is the G20 president. 

“Along with the G20 meeting in Bali next week, it is necessary for G20 countries to accelerate the energy transition, moving away from fossil energy that is expensive, polluting and dangerous. Taking the energy transition as one of the G20 priority issues, President Joko Widodo (Jokowi) needs to remind G20 countries to be more ambitious in carrying out the energy transition, including Indonesia. The key to reducing emissions is to first, immediately reduce coal power plants and plan to phase out coal power plants, which must be done before 2040. Second, accelerate renewable energy to replace energy and encourage energy efficiency,” said Fabby.

Furthermore, Fabby implied the fossil subsidies, which are increasing every year and hindering the development of renewable energy and energy efficiency. He hopes that at the G20 Summit, President Jokowi can invite G20 countries to take a stand to cut fossil energy subsidies. 

Meanwhile, based on Climate Transparency 2022 calculations, Indonesia’s unconditional Nationally Determined Contribution (NDC) target will increase emissions by 421% above 1990 levels, or an average of 1,661 MtCO₂e by 2030. To stay below the 1.5°C temperature limit, Indonesia’s emissions by 2030 must be around 449 MtCO₂e, at an ambition gap of 1,212 MtCO₂e. All of these figures do not include emissions from land use.

Despite submitting the Enhanced Nationally Determined Contribution (NDC) in September 2022, the emission reduction targets in the emission sector are not at all consistent with the Paris Agreement’s 1.5°C temperature limit. Based on the  Enhanced NDC, by 2030, the target level of unconditional emission (unconditional) NDCs in the energy sector will be 1,311 MtCO₂e, with a target of unconditional reduction of NDCs of 358 MTon CO₂eq. 

“The increase in emission reduction targets, especially in the energy sector, should be appreciated, but unfortunately, the increasing ambition is still far from achieving a trajectory of 1.5 degrees Celsius. In addition, the implementation is still far from the target that has been set,” explained Farah Vianda, Green Economy Program Officer, IESR. 

According to her, Indonesia’s commitment to gradually stop the use of coal-fired power plants and start the transition to renewable energy referred to in the declaration of ‘Global Coal to Clean Power Transition’ at COP26, needs to be realized immediately. Even Climate Transparency 2022 reveals that the energy transition process must equitably take place, one of which is,  by accommodating the interests of around 100,000 people working in the coal industry.

“The Indonesian government needs to facilitate a just transition for coal mining sector workers and ensure alternative sources of economic growth in areas dependent on fossil energy. The government can diversify the economy to prioritize investment in the clean energy sector, engage in social dialogue to ensure an inclusive transition, and implement carefully designed early mitigation actions,” Farah said.

Farah stated that every commitment must be realized, considering that Indonesia has signed the Silesian Declaration on Solidarity and Just Transition (COP24), but until now both policies to increase renewable energy and retiring coal-fired power plants are still at the middle level.

Furthermore, Climate Transparency 2022 encourages Indonesia to design a clear roadmap to phase out coal power and start the energy transition. The 2021-2030 Business Plan (RUPTL) still maintains the use of coal.

Climate Transparency identified several opportunities for Indonesia to increase its climate ambitions. First, Bappenas has developed a net zero emissions  2045 roadmap which is considered to provide economic and social benefits compared to the zero emissions target of 2060. Second, the energy sector’s high carbon intensity continues to increase. Third, the transportation sector accounts for 33% of final energy consumption, and 95% of this demand is met through oil. Strong policies to decarbonise the transport sector would help Indonesia achieve its net zero targets. 

Based on the evaluation of the Climate Action Tracker (CAT), Indonesia’s climate targets and policies are “highly insufficient”. The rating shows that Indonesia’s climate policies and commitments lead to rising rather than reducing emissions and are completely inconsistent with the Paris Agreement’s 1.5°C temperature limit. To get a better ranking, Indonesia needs to set more ambitious NDC targets and policies. Its unconditional NDC targets need to be brought well below its current policies to result in emissions close to present levels by 2030. Meanwhile, its conditional NDC targets need to be well below present levels in 2030. 

Coal-Fired Power Plants Retirement Commitment Needs to be Followed Up Immediately

press release

Raditya Wiranegara (right), IESR Senior Researcher, explained the findings of the “Financing Indonesia’s coal phase-out report” at the Indonesia Sustainable Energy Week (ISEW) 2022

Jakarta, 11 October 2022 – The government’s decision in Presidential Regulation (Perpres) 112/2022 to no longer build new coal-fired power plants, and to limit the operation of all coal-fired power plants to 2050 at the latest, needs to be supported by political, financial, and social readiness.

A study by the Institute for Essential Services Reform (IESR) together with the University of Maryland, to comply with the Paris Agreement to limit the increase in average temperature below 1.5 degrees Celsius, Indonesia can immediately retire 4.5 GW of coal-fired power plants within a period 2022-2023.

“The benefits that can be achieved from the early retirement scenario of the coal-fired power plants are about 2-4 times greater than the costs incurred to retire the coal-fired power plants,” said Raditya Wiranegara, Senior Researcher at IESR at Indonesia Sustainable Energy Week (ISEW) 2022.

In addition, he also explained that the accelerated retirement of coal-fired power plants could prevent deaths from reaching 168 thousand people by 2050, and the total health cost savings that could be obtained would be around USD 60 billion by 2050.

Furthermore, Raditya explained that most of the costs needed for coal-fired power plants retirement include the cost of abandoned assets with two-thirds related to the retirement of IPP’s coal-fired power plants.

While waiting for all coal-fired power plants to be fully retired in 2045, Raditya continued, the government can carry out flexible coal-fired power plant operations to make room for renewable energy to enter Indonesia’s energy system.

Koben Calhoun, Principal Carbon Free Electricity, Global South Program, RMI added by citing an IESR study which states that the decarbonization of the energy sector in Indonesia in 2050 will take as much as USD 25 billion/year until 2030 and USD 60 billion/year until 2050 for investment into renewable energy, electrification, and supporting infrastructure.

“Three pillars approach to financing coal transition, recovering capital from the assisting asset and other entities, and refining the existing assets there will be an opportunity to reinvest in clean energy and other tech allowing low carbon power systems and finding support for just energy transition.,” explained Calhoun.

According to him, Indonesia can lead an ambitious energy transition and demonstrate financial mobilization with ambitious government commitments, and leadership towards energy transition platforms and funds has a clear early retirement roadmap preceded by the implementation of pilot projects and has a blended financial structure. finance) to lower capital costs and mobilize finance for the energy transition. Ensuring funding needs as well as the interests and goals of potential investors, who tend to finance renewable energy and no longer want to finance coal projects, are important to be able to open the funding faucet.

Architrandi Priambodo, Senior Energy Specialist at the Asian Development Bank also revealed that early retirement of coal-fired power plants, in addition to significantly reducing greenhouse gas emissions, will also reduce overall generation costs in the long term.

He explained that this is one of the goals of the Energy Transition Mechanism (ETM) program to accelerate the termination or repurposing of coal-fired power plants, especially parts of the power plant assets that can be utilized further, such as transmission and substations.

“In the ongoing ETM feasibility study, financial analysis and transaction structures are also discussed, which include commercial and legal structures to efficiently terminate the coal-fired power plants assets,” said Architrandi.

Melli Darsa, Senior Partner at PwC Indonesia, on the same occasion said that if political conditions are favourable, early retirement plans for coal-fired power plants need to be followed by implementing regulations related to the technical aspects of early retirement for coal-fired power plants to provide higher legal certainty.

“The government has gone in the right direction, in terms of making it very clear that the international commitment is based on strong high-level regulation being on the president’s regulation, the ministers are supposed to go and do a follow up on this. However there is still reluctance of the board to take risks to decide because it might be the right thing, but if there are no clear roles, instead it is assigned,” explained Melli.

ISEW is held in collaboration with the Indonesia Clean Energy Forum (ICEF), the Institute for Essential Services Reform (IESR), and Clean, Affordable, Secure Energy for Southeast Asia (CASE). CASE is a cooperation program between two countries: Indonesia – Germany (Directorate of Electricity, Telecommunications and Information Technology, Ministry of National Development Planning/Bappenas, and funded by the Ministry of Economy and Climate Action of the German Federation Government). Previously, discourse on energy transition in Indonesia was routinely held at the Indonesia Energy Transition Dialogue (IETD), which this year participated in ISEW 2022. First held in 2022, ISEW will last for 5 days from 10-14 October 2022 with the theme Reaching Indonesia’s Net Zero Energy System: Unite for Action and Strategy. All levels of society can participate in this activity for free on isew. live.

ISEW 2022: Unity of Action and Indonesia’s Energy Transition Strategy

Ambassadors joined the discussion in ISEW 2022 on the topic of International cooperation in advancing energy transition in Indonesia

Jakarta, 09 October 2022 – The government of Indonesia needs a strong commitment to implementing energy transition through strong political and policy support. It supports global efforts to keep the global average temperature rise below 1.5 C, achieve energy security, and focus investment on sustainable development, such as renewable energy development. In addition, the involvement and participation of all Indonesian people are crucial in the energy transition process. Unity of action and strategy in the energy transition is a discussion that will be explored further at Indonesia Sustainable Energy Week (ISEW) 2022.

“This event will create a common understanding, provide understanding, especially regarding the efforts that need to be done in pursuing the Net Zero Emissions (NZE) target by 2060 or sooner,” said Rachmat Mardiana, Director of Electricity, Telecommunications and Informatics, Ministry of National Development Planning/Bappenas in media briefing and virtual launch of ISEW 2022.

Rachmat added that the Indonesian government hopes to escape the middle-income trap and become a developed country before Indonesia’s 100th anniversary in 2045. He emphasized that internalizing energy transition efforts in preparing long-term development plans is more important.

Yusuf Suryanto, Coordinator of Electricity, Directorate of Electricity, Telecommunications and Information, Bappenas, explained that to become a developed country, Indonesia needs to increase economic growth and expand its financial growth center area.

“The point is, Indonesia’s economy is expected to grow more than 6%, and the role of the eastern part of Indonesia needs to be increased to 25% so that economic growth outside Java will dominate,” said Yusuf.

Furthermore, he emphasized that the outer Java region’s economic growth could align with the energy transition process in eastern Indonesia. 

Fabby Tumiwa, Executive Director of the Indonesia Clean Energy Forum (ICEF) & Institute for Essential Services Reform (IESR), said that Indonesia has an opportunity to increase energy consumption and supply while reducing the intensity of greenhouse gas emissions.

“The key in policies and regulations and proper planning to encourage low-carbon technologies to replace energy supplies of which 87%, according to government data, comes from fossil energy,” explained Fabby.

The Government of Indonesia’s commitment to the energy transition is demonstrated by the issuance of Presidential Regulation (Perpres) No 112/2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity. This Presidential Regulation regulates the setting of tariffs for renewable energy, which has the potential to revitalize the renewable energy investment climate in Indonesia. Not only that, but this Presidential Decree also provides a mandate for the Ministry of Energy and Mineral Resources to prepare a roadmap for accelerating the termination of the PLTU operational period.

“Regarding the energy transition, the Minister of Energy and Mineral Resources compiled a roadmap to accelerate the termination of the PLTU operational period after coordinating with the Minister of Finance and the Minister of SOEs. Follow-up actions that it will carry out include consolidating and aligning perceptions with PLN and the relevant Ministries contained in this Presidential Regulation,” explained Andriah Feby Misna, Director of Various New Renewable Energy, Ministry of Energy and Mineral Resources.

Fabby added that to achieve Net Zero Emissions by the 2060 Scenario (NZE), new and renewable energy generation will be driven by 786.2 GW, with 60.2 GW coming from battery power.

 

The energy transition to renewable energy will have a social, economic, and environmental impact on the people of Indonesia. Indonesia, as a country that exports 75% of its coal production, the Indonesian economy will contract significantly if there is a decline in demand. We can see the strengthening climate commitment of Indonesia’s coal export destination countries such as China, India, Japan, and South Korea. Economically, constructing renewable energy plants is predicted to be cheaper than building a new PLTU in 2023 and more affordable than operating an existing PLTU in 2030. A production decline will have a negative impact based on an IESR study entitled Redefining Future Jobs. Employment along the coal value chain from production, processing, transportation, and end-use.

Widhyawan Prawiraatmadja, an Indonesia Clean Energy Forum (ICEF) member, emphasized that the energy transition must be carried out fairly. Anticipating the impacts, especially in the affected sectors, such as the coal industry, needs to be done.

“Workers, especially in sectors undergoing adjustment, such as in the coal sector, need to be prepared for their capacity and capability to switch to clean energy,” he explained.

Widhyawan said that energy transition needs to be ensured with the support of incentives from the government. Furthermore, he also encourages public awareness and contribution to energy efficiency, which is still far behind developed countries.

Indonesia’s energy transition process will be discussed at ISEW 2022, especially concerning accelerating the retirement of Indonesian PLTU. ISEW 2022 will discuss various aspects of support, inclusiveness, and mitigation strategies in detail on the implications of the energy transition that Indonesia needs to prepare for the energy transition process.

ISEW was held in collaboration with the Indonesia Clean Energy Forum (ICEF), the Institute for Essential Services Reform (IESR), and Clean, Affordable, Secure Energy for Southeast Asia (CASE). CASE is a cooperation program between two countries: Indonesia – Germany (Directorate of Electricity, Telecommunications and Information Technology, Ministry of National Development Planning/Bappenas, and funded by the Ministry of Economy and Climate Action of the German Federation Government). Previously, it routinely held discourse on energy transition in Indonesia at the Indonesia Energy Transition Dialogue (IETD), which this year participated in ISEW 2022. First maintained in 2022, ISEW will last five days from 10-14 October 2022 with the theme Reaching Indonesia’s Net Zero Energy System: Unite for Action and Strategy. All levels of society can participate in this activity free at isew.live.***

Youth Voice for Energy Transition

Energy transition is becoming an increasingly popular word in 2022. This is a good sign to spread the issue of energy transition to more and more people. We are currently living in a time that requires fast action to deal with the climate crisis that is already happening right in front of our eyes. The energy transition is a systematic solution to reduce greenhouse gas (GHG) emissions which are the cause of the increase in the earth’s temperature, causing the climate crisis.

Various groups of scientists such as the Intergovernmental Panel on Climate Change (IPCC) have warned that our time to contain the rate of increase in Earth’s temperature is getting shorter. Currently the earth’s temperature has increased by 1.1 degrees Celsius from pre-industrial times, and the whole world is trying to contain the rate of increase in the earth’s temperature no more than 1.5 degrees.

To achieve this goal, by 2030 we must cut 45% of global GHG emissions. As one of the world’s largest emitter, Indonesia is responsible to reduce emissions, especially in the energy and land use sectors.

From the energy sector, to reduce GHG emissions and in line with the 1.5-degree goal, Indonesia must retire 9.2 GW of coal plants by 2030 and gradually retire all coal capacity by 2045. The decrease in the number of coal capacity must also be accompanied by an increase in renewable energy generation massively as well as improving the quality of transmission and distribution networks.

Fabby Tumiwa, Executive Director of IESR, in the Young Voices forum organized by the Foreign Policy Community of Indonesia (FPCI) stated that if Indonesia continues to develop fossil energy, emissions from the energy sector will continue to increase.

“If we continue to develop fossil energy, our emissions will increase by three times. To avoid this, the coal fleet must be retired, and renewable energy must be added,” explained Fabby.

Kuki Soejachmoen, Co-Founder and Executive Director of the Indonesia Research Institute for Decarbonization (IRID) highlighted the inconsistent energy transition policies at various levels.

“There are some policies that do not support each other. For example, in international forums we are committed to transition, but there are no supporting policies and enabling environment. Thus, the commitment cannot be carried out,” explained Kuki.

Kuki also added that Indonesia is in a period of development which means that the demand for energy is predicted to continue to rise, if energy development is still based on fossil fuels, of course this will make Indonesia’s emissions continue to rise.

Melissa Kowara, activist for Extinction Rebellion Indonesia, assessed that, although the term energy transition has become increasingly popular, the policy is still not visible.

“Although the Indonesian government and countries in the world have made the energy transition a priority issue, in practice they have not realized the energy transition and some even tend to be ‘misguided’, such as the plan to use CCS/CCUS for coal power plants,” said Melissa.

Responding to this, Fabby Tumiwa said that public encouragement is indeed needed for policy reform for the energy transition.

“Currently there are several policy changes, which if implemented properly can help us carry out the energy transition. Here, one of the roles of the public can be to monitor how the government implements these rules and also to remind them when there is negligence,” concluded Fabby.