The Importance of Terminating Coal Power Plant Operations to Pursue Emission Reduction Targets

press release

Jakarta, 20 June 2023 – The Institute for Essential Services Reform (IESR) urges the Indonesian government to transform the energy sector to achieve peak emissions in 2030 and carbon neutral in 2050. This align with President Joko Widodo’s commitment to achieve net-zero emissions in 2060 or earlier as a form of Indonesia’s responsibility to reduce the threat of global warming.

According to Climate Watch’s data, the energy sector is the largest contributor to greenhouse gas emissions. Globally, the sector produces 36.44 gigatons of carbon dioxide equivalent (Gt CO2e) or 71.5% of total emissions. Meanwhile, based on the Ember Climate report, Indonesia ranks as the 9th largest CO2 emitter from the electricity sector in the world, reaching 193 million tons of CO2 in 2021. For this reason, the government must reduce emissions significantly in the energy sector, especially in the electricity sector.

Fabby Tumiwa, Executive Director of IESR stated that as one of the world’s largest economies as well as the largest emitters, Indonesia is expected to show leadership and commitment to decarbonize its energy sector through energy transition policies and plans. President Joko Widodo’s (Jokowi) political commitment must be translated into a series of policies, regulations and plans that align with one another.

“There are signs that President Joko Widodo’s (Jokowi) political commitment is trying to be countered and hindered by a number of parties who are reluctant to make an energy transition, and ultimately want to maintain the status quo, which is to not reduce coal consumption to supply electricity. For this reason, the President must observe in detail which parties are reluctant to do energy transition or try to downgrade the government’s ambition and buy time until they can change the political decision,” Fabby added.

Deon Arinaldo, Manager of the Energy Transformation Program said that IESR views the termination of coal-fired power plants in Indonesia as an important matter. As one of the recipients of Just Energy Transition Partnership (JETP) funding, Indonesia is committed to achieving a peak emission of 290 million tons of CO2 by 2030, and increasing the renewable energy mix in the electricity sector to 34% by 2030,” said Deon.

“The target stated in the JETP commitment is higher than the policies and plans that have been set at this time. For example, the emission target covers the power sector as a whole as well as the renewable energy mix which is 10% higher than PLN’s RUPTL 2021-2030. This means that in order to achieve this target in approximately 7 years, transformation is needed not only in planning the electricity system, such as stopping the operation of coal-fired power plants,” said Deon.

Assuming that all power plants, including coal-fired power plants, planned in the 2021-2030 RUPTL are built, IESR calculates that to achieve the JETP target,  at least 8.6 GW coal-fired power plants must be retired before 2030 followed by the termination of 7.6 GW CFPP operations before 2040. On the policy side, accelerating  renewable energy development and investment disincentives for fossil energy generators also need to be continuously encouraged.

Based on the Delivering Power Sector Transition report, IESR found that of the 13.8 GW PLTU which is planned for development in the 2021-2030 RUPTL as many as 2.9 GW could be canceled, 10.6 GW needed to end operations early, and 220 MW to be replaced with renewable energy power plant such as biomass. The cancellation of the 2.9 GW PLTU is the cheapest option to avoid GHG emissions in the electricity sector.

“From the analysis we conducted in this report, canceling the construction of coal-fired power plants coupled with early retirement for power plants can help achieve the peak emission target agreed upon in the JETP. We estimate that a 5.6 GW PLTU must be retired before 2030 if the 2.9 GW PLTU can be canceled,” said Akbar Bagaskara, Researcher of the Electricity System.

Based on the IESR study entitled Financing Indonesia’s coal phase out: A just and accelerated retirement pathway to net-zero, the cessation of coal-fired power plants is beneficial from an economic and social perspective, such as avoiding the cost of subsidized electricity produced from coal-fired power plants and health costs, respectively. Amounted to $34.8 and $61.3 billion—2 times to 4 times as much—of the cost of stranded assets, decommissioning, job transition, and losses in coal revenues.

“Until 2050, it is estimated that investment costs will be required to develop renewable energy and supporting infrastructure, as a substitute for the retired coal power plants, amounting to $ 1.2 trillion. International funding support will certainly be needed to make this happen. However, by retiring PLTU early and accelerating the development of renewable energy in Indonesia, it is estimated that there will be 168,000 deaths that can be avoided by 2050,” said Raditya Wiranegara, IESR Senior Researcher.

Translator: Regina Felicia Larasati

Waiting for JETP Implementation in Indonesia

Raden Raditya Yudha Wiranegara

Pakistan, May 31, 2023 –  The energy transition is being discussed in many countries, including Pakistan. Some of the challenges faced by Pakistan in adopting renewable energy include inadequate electricity infrastructure and network integration. Similar to Pakistan, Indonesia also faces similar challenges. Still, the government’s fast action is needed to reduce the use of fossil energy as a concrete step to reduce greenhouse gas emissions.

Raden Raditya Yudha Wiranegara, Senior Researcher at the Institute for Essential Services Reform (IESR), explained the electricity sector contributes around 40% of greenhouse gas emissions in Indonesia based on the 2023 Indonesia Energy Transition Outlook (IETO) report and achieves net zero emission by 2060 or faster, Raditya said, it is necessary to transition all energy supplies. One is changing the electricity sector by gradually reducing fossil fuels in PLTU. According to Raditya, coal-fired power plants must be reduced or retired in stages until 2045 to align with the 1.5°C ambition.

“The first phase is carried out by closing 18 coal power plants with a total capacity of 9.2 GW until 2030, then 39 coal power plants with a total capacity of 21.7 GW, and 15 coal power plants with a total capacity of 12.5 GW,” explained Raditya in the Symposium on “Accelerating the Just Energy Transition in Pakistan” organized by the Sustainable Development Policy Institute (SDPI) on Wednesday (31/5/2023).

In fulfilling the 1.5°C ambition, Indonesia’s Just Energy Transition Partnership (JETP) is one of the driving forces. Raditya explained that the partnership includes a peak emission target 2030 for the Indonesian electricity sector, including on-grid, off-grid, and captive power generation systems, shifting the projected peak emissions by about seven years earlier. Apart from focusing on significant emission reductions, JETP is also promoting sustainable development and economic growth and protecting the livelihoods of people and workers in the affected sectors.

To implement this target, Raditya said, currently the JETP Indonesia Secretariat, is developing a comprehensive investment plan (CIP) for the Just Energy Transition Partnership (JETP) funding program. However, Raditya stressed the JETP Indonesia Secretariat only had a limited time to complete it, bearing in mind that the document needed to be published in August 2023. Regarding the work on the comprehensive investment plan document, Raditya emphasized that it was hoped that the analysis results in the working group could be included in it in July 2023. The working groups in JETP Indonesia consist of 4 working groups representing various parties, including the Indonesian government, national and international institutions, and elements of civil society who have expertise in their respective fields. The working group oversees Technical, Policy, Funding, and Equitable Transition.

“Reflecting on these conditions, transparency and availability of data is a problem in the working group. This needs to be a concern considering that these conditions can hinder each group member from carrying out the assigned tasks,” said Raditya.

The CIP document will contain technical, funding, policy, and socio-economic information regarding energy transition investments in the electricity sector up to 2030 which will form the basis for implementing the USD 20 billion partnership under JETP Indonesia. Based on the JETP Indonesia Joint Statement, funding mobilization is targeted to occur in years 3 to 5 after the JETP Indonesia funding partnership is agreed upon. In addition, the investment areas that have been agreed upon in the CIPP consist of developing transmission and distribution networks, early retirement of coal-fired power plants, accelerating the use of baseload type renewable energy, accelerating the use of variable type renewable energy, and building a renewable energy supply chain.

New Study Finds Cancelling Coal Plants as Cost-Effective Way to Cut Global CO2 Emissions

Preventing nine planned Indonesian coal plants would avoid nearly 300 million tons of emissions for less than 80 cents per ton of CO2, per IESR analysis supported by The Rockefeller Foundation

JAKARTA, INDONESIA | May 30, 2023 ― The Institute for Essential Services Reform (IESR), a leading energy and environment think tank based in Jakarta, Indonesia, released a first-of-its-kind analysis, commissioned by The Rockefeller Foundation, which examines what it would take to prevent planned coal plants from being built. Delivering Indonesia’s Power Sector Transition found that nine coal plants in Indonesia could be cancelled with minimal repercussions for supply or grid stability and affordability, while avoiding an estimated 295 million tons of CO2 emissions. The study recommends cancelling planned, permitted, or pre-permitted plants as one of the most cost-effective and environmentally impactful approaches to accelerating just energy transitions in Indonesia.  

 “We developed an entirely new approach to undertake this analysis. We looked individually at each planned coal plant in Indonesia. Based on a multi-criteria scoring system, we identified plants that could be cancelled, and then assessed the legal, financial, system resilience, energy security, and carbon emission implications of this intervention. Our team used satellite images to track plants’ development progress over time, “said Fabby Tumiwa, Executive Director of IESR.  

“There are some 950 coal plants planned or under construction around the world, which if built, would emit an estimated 78 billion tons of CO2 into the atmosphere over their lifetime,” said Dr. Joseph Curtin, Managing Director for Power and Climate at The Rockefeller Foundation. “This first-of-its-kind analysis illustrates that, in many cases, there are better options available to policy makers, utilities, regulators, and systems planners that can accelerate the shift from fossil fuels. This analysis could also be replicated in other countries with a large coal pipeline.”

If constructed, the nine coal plants, which are predominantly at the financing state, would account for nearly 3,000 megawatts (MW) of coal capacity, or about 20% of total planned additions in Indonesia. A power system analysis was undertaken using seven separate models, representing each part of the country’s existing grid, to examine the power system reliability and affordability associated with cancelling. IESR’s analysis found that cancelling the nine plants: 

  • Would avert 295 million tons of CO2 emissions. With USD 238 million already invested to date into the nine, the calculated carbon abatement is less than 80 cents per ton of CO2 emissions avoided.
  • Could be achieved without compromising system stability, and that the power would mostly be replaced by existing power plants operating at greater capacity. This route, however, would likely imply additional costs from power system operation of $2.5 billion per annum in the period to 2050. It also should be noted that IESR’s analysis did not include adding more renewables to the energy mix, which would help reduce the average generation costs even further. 
  • Requires incorporating the legal risks associated with the unilateral cancellation of any project for the Republic of Indonesia and PLN, Indonesia’s government-owned electricity company, which were identified in the study. Independent power producers (IPPs) enjoy long-term power purchase contracts with PLN on favorable terms, and negotiations will be necessary in each case to ensure that cancellations do not amount to a breach of existing agreements. In some cases, offering the project developer the option to replace the power with renewables could be considered.
  • Will not be sufficient to meet Indonesia’s Just Energy Transition Partnership (JETP) target.

More than two-thirds of Indonesia’s electricity currently comes from burning coal, and with the PLN predicting an additional 13,822 MW of capacity via new coal plants by 2030, Indonesia has the third largest coal pipeline in the world, following China and India. At the same time, through JETP, Indonesia also aims to achieve peak emissions from the power sector at 295 million metric tons of CO2 per annum by 2030 and net-zero emissions in the power sector by 2050. In order to do so, the Republic of Indonesia and International Partnership Group (IPG) signed a JETP agreement in 2022, and in March 2023, the Indonesian Ministry of Energy and Mineral Resources signed a Memorandum of Understanding with the Global Energy Alliance for People and Planet (GEAPP), which is funded by The Rockefeller Foundation, IKEA Foundation, and Bezos Earth Fund. 

The report also includes a series of further recommendations that outline a systematic approach to reaching net-zero emissions by 2050 or earlier. 

Report Launching and Discussion Delivering Power Sector Transition in Indonesia: Options and Implications of Intervening the 13.8 GW Coal-fired Power Plants Project Pipeline of Indonesia’s State-owned Utility

Background

Indonesia has ratified the Paris Agreement through the Law no 16/2016. As a result, Indonesia is legally bound to contribute to the global struggle of climate change through ambitious efforts and action in mitigating Greenhouse Gas (GHG) emission and limiting the increase of the average global temperature below 1.5 0C. In one of the IPCC climate model results of the 1.5 0C compatible pathway, the global Greenhouse Gas (GHG) emission must decrease by 45% in 2030 compared to 2010 and reach net zero emission by 2050. As of now, Indonesia is among the top 10 greenhouse gas (GHG) emitters and still projected to increase its emissions, with the energy sector as the highest GHG contributor by 2030.

With 66% share of power generation in 2021, the coal power plant has been the major contributor of the energy sector emission (around 40%), and even 90% of power sector emission. The latest PLN’s RUPTL (green RUPTL) still considers the addition of 13.8 GW of Coal power plants in the next decade. The share of renewable energy will only increase to around 24% by 2030 according to the same plan, resulting in overall increase of the power sector (and energy sector) emission. Thus, it clearly goes against the mandate of the Paris Agreement.

Institute for Essential Services Reform (IESR) and the University of Maryland (2022) study found that 9.2 GW of coal must be phased out from the state-owned utility (PLN) grid before 2030 and all unabated coal plants must be phased out by 2045 at the latest, to put Indonesia on track to meeting the 1.5°C Paris Agreement global temperature goal. The study also concluded that the coal emission has to start declining event before the end if this decade. There have been several initiatives and measures to support and realize the early retirement of Indonesia’s CFPP. In addition to the Energy Transition Mechanism (ETM) launched at COP-26, during the G20 summit, Indonesia and the International Partnership Group (IPG) have also signed the Just Energy Transition Partnership (JETP), aimed at meeting the power sector’s peak emission target of 290 million metric tons of CO2 (MtCO2) by 2030, reaching a 34% renewable energy mix by 2030, and having the power sector become net-zero by 2050. 

Even though the JETP target is not yet aligned with the Paris Agreement’s goal, it is an important opportunity for Indonesia to accelerate energy transition and open the possibility for early coal plant decommissioning.  According to the IESR assessment, under current power system circumstances, meeting the JETP goals would require slashing 8.6 GW of coal power capacity in the PLN grid by 2030, lower than the capacity required to meet the 1.5°C pathway.   

This study hence explores the potential of intervening in some of Indonesia’s coal plant pipelines and assesses the legal, financial, system resilience, energy security, and carbon emission reduction of this intervention. The thinking behind this assessment is that, given the average age of coal plants in Indonesia, including those that are currently in the pipeline, their operation will surpass the 2045 or 2050 target year. Meanwhile, the early retirement of existing plants in operation could be very costly given their long-term contract and nature of their PPA’s terms. Therefore, intervention for individual plants in the pipeline, even cancellation of existing projects whenever it is possible could produce a lower-cost carbon emission abatement and might contribute to meeting the target to reach peak emission by 2030 and net-zero emission by 2050. Types of interventions considered in the study include cancellation of planned CFPP, repurposing, and early retirement.

IESR will hold a hybrid seminar to launch the research report titled “Delivering Power Sector Transition in Indonesia: Cost and Benefits and Implication of Intervening in the 13.8 GW Coal-fired Power Plants Project Pipeline of Indonesia’s State-owned Utility”, and invited the related stakeholders to discuss and build out recommendation for decarbonization of the power system.

Objectives

  1. To disseminate research-based analysis of intervention strategy on carbon emission reduction in power sector to meet the JETP target and even the 1.5°C Paris Agreement global temperature goal in the long-term especially for the pipeline CFPP
  2. To identify the cost, benefit and implication on intervening Coal-Fired Power Plants Pipeline
  3. To discuss the opportunity and potential obstacle to overcome the challenges on cancellation, repurposing and/or early retirement of CFPP

Preparing Human Capital for The Energy Transition

Jakarta, May 2023 – The world is moving to a low-carbon economy. Consequently, the energy supply for the economy also shifts from fossil fuel to renewable energy. Last year, for the first time, global investment in low-carbon energy technologies (including non-energy production technologies such as electrified transportation, electrified heat, and sustainable materials) surpassed USD 1 trillion and matched the investment level in fossil fuel. The increased investment in low-carbon technologies resulted in rising employment in the field. Globally, employment in renewable energy production has been constantly growing from 7.3 million in 2012 to 12.7 million in 2021.

Although visibly slower than the global pace, Indonesia is no exception to this trend. Particularly over the past year, Indonesia has shown an improved energy transition commitment. The president issued a regulation that put a moratorium on coal-fired power plants (although with some exceptions) and overhaul the unattractive pricing regulation that had been hindering renewables investment since 2017. Two months later, a major landmark in Indonesia’s energy transition journey was announced in the form of the Just Energy Transition Partnership (JETP) during the G20 summit in Bali. The JETP commitment is not sufficient to keep the global temperature rise below 1.5oC, but significantly more ambitious than the NDC. It committed to mobilizing USD 20 billion worth of investment for the next 3-5 years to accelerate the energy transition in Indonesia.

All the investments made for energy transition will translate to human capital requirements. It is especially true for renewable energy investments that generally are more labor-intensive than the fossil industry. IESR estimated that investment for achieving net-zero emission by 2050 will bring about 800,000 new jobs in 2030 in the power sector only (excluding jobs in electric vehicles, sustainable materials, etc.). The employment will increase to 3.2 million jobs in 2050. These numbers are much higher compared to the current employment in the power sector that is around 270,000.

However, Indonesia seems to be rather unprepared for the transition in the workforce. The government has no clear strategy for developing the workforce capacity needed and research on renewable energy has been in a declining trend. The government agencies responsible for workforce planning, such as the Ministry of Manpower, have so far been excluded in the energy transition discussions. This unpreparedness is even more crucial for the hundred of thousands that currently are working in the fossil fuel supply industry. Not all of them have transferable skills that could be used in the renewable energy sectors, for example, the operators of heavy-duty equipment which comprise a large proportion of the employment in the fossil industry. A more comprehensive policy set and better coordination among the policymakers, especially to include the agencies responsible for workforce development, is indispensable. Otherwise, Indonesia might miss the economic (employment) benefits of the energy transition.

Photo by Verhalenhuys on Unsplash

The Role of Solar Energy in Supporting NZE and JETP Target

Jakarta, 10 March 2023 – Clear and earnest support from the government for the development of solar energy needs to be demonstrated, especially in achieving the Net Zero Emission (NZE) target in 2060 or sooner and the renewable energy mix target in the Just Energy Transition Partnership (JETP) of 34 % in 2030. 

“So far, JETP discussions are still focused on the early retirement of the coal-fired power plants (CFPP). There is no element of accelerated renewable energy yet. It needs to be noted, especially to accelerate the development of solar energy, which is projected to become one of the backbones of electricity generation in achieving the NZE, given Indonesia’s great potential, increasingly competitive economy and relatively short construction,” said Daniel Kurniawan, Researcher, Specialist Photovoltaic Technology and Materials, Institute for Essential Services Reform (IESR) in the Solar Energy Talk: Technology, Policy and Solar Energy Challenges in Supporting the Just Energy Transition Partnership (JETP) and Net Zero Emission (NZE) on Thursday (9/3/2023).

According to him, nowadays is the right time for the government to involve community participation by pursuing these various targets with policies that support the acceleration of solar energy and the use of rooftop solar power plants on a commercial & industrial and residential scale. He regretted that the public hearing held by the Ministry of Energy and Mineral Resources (MEMR) regarding the revision of Minister of Energy and Mineral Resources Regulation No. 26/2021, the government wants to cancel the net metering scheme for the residential sector, which will reduce the economy and customer interest in installing rooftop solar PV.

“The government should not remove policy support for the community in adopting rooftop PV mini-grid, especially for the household and the small business sector, at this very early adoption stage. On the other hand, policy support must be increased to encourage adoption to a mature market stage,” he stressed again.

On the same occasion, Widya Adi Nugroho, Sub Coordinator for Supervision of Renewable Energy Businesses, Ministry of Energy and Mineral Resources (MEMR), said that Indonesia has a renewable energy mix target of 23% in 2025. However, until 2022 it has only reached around 12.3 %. He said the utilization of new renewable energy power plants was prioritized according to the planning of the Electricity Supply Business Plan (RUPTL).

“Based on the 2021-2030 RUPTL, solar energy will increase by 4.6 GW in 2030. Solar will be the backbone of Indonesia’s electricity reaching 461 GW in 2060. In addition, the price trend for solar PV is getting lower and more competitive. Likewise, supporting components such as batteries so that development opportunities are increasingly open. However, there are challenges in developing solar PV, one of which is that the room for electricity generation is still full, so it requires community participation as consumers and producers to utilize renewable energy through solar energy. In addition, the system needs to maintain intermittent conditions, both with backup generators that can compensate for solar PV and also related to the local content requirement (LCR),” explained Widya Adi Nugroho.

Anindita Satria Surya, Vice President of Energy Transition and Climate Change, State Electricity Company (PLN) explained, his party continues to implement energy transition initiatives to achieve net zero emission (NZE) in 2060 or sooner. For this reason, it is necessary to increase internal capabilities and technology supported by innovation, policy and finance. Anindita estimates that the investment needed to reach the NZE in 2060 is around USD 700 billion. In addition, Anindita emphasized that the implementation of the de-dieselization program or the conversion of diesel power plants is a strategy to increase the energy mix, especially solar energy in the electricity system.

“There are several PLN strategies for integrating renewable energy, including in the short term achieving RUPTL (2021-2030) with around 4.7 GW or 22% coming from solar PV,” said Anindita.

In his presentation, other renewable energies that will be developed to achieve RUPTL include hydropower (44%) and geothermal (16%). In addition, his party will carry out de-dieselization, early retirement of coal, and co-firing of biomass. Then, in the long term to achieve NZE (2031-2060), steps to be taken include encouraging battery-based electricity storage and interconnection, as well as hydrogen co-firing. On the technology and ecosystem development side, PLN will focus on, among others, solar PV and electric vehicles.

“As an illustration, in the beginning, we built a powerful system, namely the baseload generator, built a strong transmission and coupled with strengthening the use of renewable energy, including solar PV. At the end of the 2035 period, most of the solar PV has entered our system,” he said.

Anindita emphasized that solar PV could be one of the solutions to increase the energy mix but the readiness of the infrastructure, especially batteries, to reduce intermittent nature must also be seen. For example, there are no batteries to support solar PV in Lombok, West Nusa Tenggara (NTB). Not only rooftop solar PV, but PLN is also trying to take advantage of the potential of floating solar PV. As part of supporting the implementation of the Indonesian Presidency’s G20 activities, a 100 kWp floating PLTS has been built in the Muara Reservoir, Nusa Dua, Bali.

Meanwhile, Rosyid Jazuli, a researcher at the Paramadina Public Policy Institute, explained that Indonesia has enormous solar potential. Unfortunately, currently, more than 60% of electricity in Indonesia still comes from coal. This is due to several challenges in implementing solar energy to support the implementation of the Just Energy Transition Partnership (JETP), such as unclear plans, overlapping regulations, and potential funding in the form of loans. Rosyid suggested that there should be coordination between ministries and agencies in supporting the implementation of JETP, considering that this issue is a complex matter.

“On the other hand, the potential for green funding, which reaches USD 20 billion should also be optimized, especially since the current world trend is towards sustainable development. Funding is also needed for research and development of solar energy and the potential to attract investment in solar power,” said Rosyid.

Solar Energy Talk is a series of public dissemination events about solar energy which are collectively organized by six institutions; Institute for Essential Services Reform (IESR), Solar Scholars Indonesia (SSI), Persatuan Pelajar Indonesia (PPI) Australia, Asosiasi Peneliti Indonesia Korea (APIK), Institut Energi Surya Generasi Baru (Insygnia), and Solarin.

Solar energy thematic dissemination will be held regularly, every two weeks until June 2023, covering topics; Indonesia’s solar energy landscape, current policies, technology, industry, socio-economic and human resource readiness in support of the Just Energy Transition Partnership (JETP) and the Net Zero Emission (NZE) target.***

Solar Energy Talks: Technology, Policy and Challenges of Solar Energy in Support Just Energy Transition Partnership (JETP) and Net Zero Emissions (NZE)

Solar Energy Talks is a series of public dissemination events about solar energy which are collectively organized by six institutions; Institute for Essential Services Reform (IESR), Solar Scholars Indonesia (SSI), Australian Student Association (PPI), Indonesian Korean Research Association (APIK), New Generation Solar Energy Institute (Insygnia), and Solarin (@solarin.id). Solar energy thematic dissemination will be held regularly, every two weeks until June 2023, covering topics; Indonesia’s solar energy landscape, current policies, technology, industry, socio-economic and human resource readiness in support of the Just Energy Transition Partnership (JETP) and Net Zero Emission (NZE) targets.

Background

As a country that ratified the Paris Agreement and affirmed its commitment to the Glasgow Climate Pact, Indonesia is committed to contributing to limiting global temperature rise. In one of the IPCC models, to limit global temperature rise below 1.5oC, GHG emissions must be reduced by 45% in 2030 compared to GHG emission levels in 2010, and reach net zero in 2050 (IPCC). In this commitment, the Indonesian government has expressed its aspirations to achieve net zero by 2060 or sooner. In addition, as a follow-up to energy transition funding agreed upon at the 2022 G20 Summit, the Just Energy Transition Partnership (JETP) secretariat has been launched by the Ministry of Energy and Mineral Resources (MEMR) which one of the main agendas is transition energy through the development of renewable energy including solar energy.

As a strategic step in achieving this target, the installed capacity of renewable energy needs to be increased quickly and massively. With potential spread throughout Indonesia, modular (can be installed at various scales), relatively short installation process, and able to absorb local skilled workforce – solar energy (solar power plants) can become the backbone of achieving renewable energy targets, reducing greenhouse gas emissions, and support Indonesia’s NZE target agenda before 2060, as well as support the JETP agenda.

Objective

  • Discuss the role of solar energy in supporting Indonesia’s Just Energy Transition Partnership (JET-P) and Net Zero Emission (NZE) targets
  • Discuss policies and implementation of solar energy policies as an effort to accelerate the energy transition
  • Discuss the energy transition roadmap, specifically solar energy, in support of the JETP and NZE targets