Indonesia’s Energy Transformation to Zero Emission

Fabby Tumiwa dalam acara Green Press Community 2023 pada Rabu (8/11/2023).

Jakarta, November 8, 2023 – The global climate crisis is humanity’s biggest challenge in the 21st century. The increase in global temperatures caused by greenhouse gas emissions is causing severe impacts such as extreme weather, increased extreme temperatures, rising sea levels, and harm to ecosystems. Indonesia, as one of the signatories of the Paris Agreement, has committed to reducing emissions. Indonesia has also submitted an Enhanced Nationally Determined Contributions (NDCs) document by increasing the greenhouse gas (GHG) emission reduction target by about 2%. Previously in the Updated NDC, the unconditional emission reduction target was 29% to 31.89% by 2030, and with international assistance (conditional) it rose from 41% to 43.2%.

Reflecting on Indonesia’s latest ENDC, Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, explained that Indonesia’s climate target is not compatible with the ambition of the Paris Agreement to maintain the earth’s temperature rise at a level of 1.5C, and does not reflect the urgency of avoiding climate change whose impacts are now sweeping across the world.

“Based on the assessment conducted by Climate Action Tracker (CAT), Indonesia’s greenhouse gas (GHG) emission reduction target is considered highly insufficient, leading to 2.4ºC. To be compatible, Indonesia’s GHG emissions must reach 850 MtCO2 in 2030 and NZE in 2050-2060. To do this, we need to reduce emissions in the energy sector more ambitiously,” explained Fabby Tumiwa at the Green Press Community 2023 event on Wednesday (8/11/2023). 

 

Fabby said that accelerating the use of renewable energy plays a key role in reducing GHG emissions. Based on an IESR study titled Beyond 443 GW Indonesia’s Infinite Renewable Energy Potentials, the technical potential of renewable energy in Indonesia reaches nearly 8,000 GW, with solar energy having the largest potential of around 6,700-7,700 GW. However, the energy transition requires regulatory, techno-economic, investment, and social support.

 

“This huge potential, if utilized optimally, will be able to meet all energy needs in Indonesia. IESR has projected that the country will require 1600 GW of energy capacity by 2050. However, this requirement can be met through 100% renewable energy sources, ultimately leading to zero emissions by 2050,” said Fabby Tumiwa. 

 

The energy transition can increase renewable energy capacity and create new opportunities and an equitable and inclusive energy transformation. Moreover, decarbonization and renewable energy technologies have become cheaper and more affordable. For this reason, Fabby encourages the government to immediately make a more ambitious plan to prevent the climate crisis in Indonesia.

Cirata Floating Solar PV Plant Ready to Operate: Important Milestone for Accelerating Solar Energy Development to Decarbonize Electricity in Indonesia

Jakarta, November 9, 2023 – Cirata floating photovoltaic (PV) power plant located in Cirata Reservoir, West Java, with a capacity of 145 MW(ac) or 195 MW(p), has been inaugurated today. This event marks an important milestone for Indonesia as it is now home to the largest floating solar power plant in Southeast Asia, surpassing the Tengeh floating solar power plant in Singapore.

The Institute for Essential Services Reform (IESR) considers the operation of the Cirata floating PV power plant as a significant achievement in accelerating the development of large-scale solar power plants in Indonesia. The country’s solar power development has been almost non-existent since 2020. However, the decreasing investment cost of solar PV has made it the cheapest renewable energy source. Therefore, Indonesia must optimize the technical potential of PLTS, which reaches 3.7 TWp to 20 TWp, to support its goal of achieving the electricity sector’s peak emission target by 2030 at the lowest possible cost.

IESR also encourages the government and PLN to take advantage of the technical potential of floating PV power plants, which reach 28.4 GW from 783 water body locations in Indonesia, to accelerate the utilization of solar power plants. Based on the data from the Ministry of Energy and Mineral Resources shows that there is potential for large-scale floating solar power plants that can be developed in at least 27 locations of water bodies that have hydropower plants (PLTA), with a total potential of 4.8 GW and an investment equivalent to USD 3.84 billion (IDR 55.15 trillion). Utilizing the potential of this floating solar power plant will accelerate the achievement of the renewable energy mix target and achieve the net zero emission (NZE) target sooner than 2060.

The government and State Electricity Company (PLN) must optimize the potential of floating solar power plants by creating a regulatory framework that attracts businesses to invest in these plants. One way to achieve this is by offering an attractive rate of return on investment that matches the risk profile but is attractive and reduces additional burdens.

One area of concern for the government is PLN’s assignment scheme to its subsidiaries, which has been a priority option for developing floating solar power plants. Through this scheme, the subsidiary seeks equity investors for minority ownership but must be willing to bear a larger portion of equity through shareholder loans.  

“This scheme benefits PLN but cuts the return on investment for investors and risks the bankability of the project and the interest of lenders. This scheme can also create unfair business competition among business players, as only those with large equity can partner with PLN, and most investors are foreign. This could impact overall investment interest,” said Executive Director of IESR, Fabby Tumiwa.  

The solution, according to Fabby, requires government support by strengthening the capital of PLN and its subsidiaries through special state capital participation (PMN) for renewable energy development and providing concession loans to PLN through PT SMI, which can then be converted into share ownership in floating PV power plants project. 

Indonesia can reap the potential for investment and low-emission electricity from floating solar power plants with the support of definitive and binding regulations from the government. In July 2023, the government issued Minister of Public Works and Public Housing Regulation Number 7 of 2023 on the Second Amendment to the Regulation of the Minister of Public Works and Public Housing Number 27/PRT/M/2015 on Dams, which no longer limits the area of water bodies in reservoirs that can be utilized for floating solar power plants at 5%. The regulation opens up opportunities for the development of floating solar power plants on a larger scale, provided that when using more than 20% of the water body area, it is necessary to obtain a recommendation from the Dam Safety Commission.

Marlistya Citraningrum, Program Manager for Sustainable Energy Access, IESR, sees this as an opportunity to overcome land issues in developing solar PV.

“Land availability is often an obstacle in the development of solar PV, especially in areas already dense with high land prices, as well as land cover that may not be suitable for solar PV, for example, too steep or productive agricultural land. Indonesia also has several dams, whether hydropower or not, that could be used as potential sites. The Hijaunesia 2023 project, for example, has offered the development of floating solar power plants in Gajah Mungkur, Kedung Ombo, and Jatigede with a capacity of 100 MW each,” Marlistya mentioned.

However, according to Marlistya, the overall planning, tendering, and construction of floating solar power plants in Indonesia still needs to be improved. Despite being a flagship project and a form of intergovernmental cooperation (G2G), the timeline for completion of the Cirata floating solar power plant is quite long – starting with a memorandum of understanding between Indonesia and the United Arab Emirates in 2017 and the formation of a joint venture between PJB Investasi and Masdar in the same year, the signing of the new PPA took place in 2020 and financial closing in 2021. This lengthy process reduces the attractiveness of floating solar power plant investment in Indonesia.

The development of supply chains for solar PV and floating PV components in Indonesia is also wide open, including for solar cells and modules. Not only for the domestic market, which has yet to reach 1 GW, solar cells and modules with tier 1 criteria produced in Indonesia are also intended for foreign markets. Chinese tier 1 solar cell and module manufacturer Trina Solar has collaborated with Sinarmas to build an integrated solar cell and module factory in Kendal Industrial Estate, Central Java, with a production capacity of 1 GW/year.

Low Carbon Development Acceleration Requires Target and Strategy Synergy

press release

Jakarta, August 10, 2023 – Sustainable development with minimal emissions is believed to be the key to lifting Indonesia out of the middle-income trap it has been in for 30 years (1993-2022) and transitioning towards a developed country. The Institute for Essential Services Reform (IESR) urges the Indonesian government to set ambitious, measurable emissions reduction targets and include them in the Nationally Determined Contribution (NDC).

Fabby Tumiwa, Executive Director of IESR, in his remarks at the seminar “Bridging the Cross-Sectoral Gap in Pursuing More Ambitious Climate Targets in Indonesia” organized by IESR, mentioned that based on global action Climate Action Tracker (CAT) data, as measured by the current policy base, would lead to a global temperature increase of 2.7°C. However, Indonesia’s latest emission reduction target is categorized as critically insufficient, which means it is far from enough to reduce global boiling. There is a gap between current policies and emission levels compatible with the Paris Agreement. Based on Indonesia’s climate policy and action, emissions will reach 111.4-132.0 GtCO2e/year by 2030 (excluding LULUCF), 351-415% over 1990 levels. To be compatible with the Paris Agreement, emissions must fall to 0.56-0.86 GtCO2e/year in 2030 (excluding LULUCF).

“In addition, we need to look at Indonesia’s NDC shows a gap in action towards meeting the net zero target. The transportation and industrial sectors need to take action, while the energy sector already has a clear strategy to reduce greenhouse gas emissions. A transparent and measurable strategy and plan is needed to achieve the target of the Paris Agreement,” he said.

Furthermore, he alluded to the delivery of different signals from policymakers who adjust the priorities of each sector regarding climate crisis mitigation. This has slowed progress toward achieving emission reduction targets per the Paris Agreement.

“The lack of a clear strategy leads to inconsistent climate action and policymaking across sectors and inadequate budget allocations for adaptation and mitigation. It is crucial to integrate climate action into the National Long‐Term Development Plan (RPJPN) and National Medium Term Development Plan (RPJMN) planning processes,” he said. 

He also emphasized that Indonesia’s chairmanship in ASEAN should be seen as an opportunity to encourage other ASEAN countries to adopt more ambitious climate policies and actions. Indonesia’s climate policies are considered among the most ambitious in ASEAN.

Medrilzam, Director of the Environment for the Ministry of National Development Planning/Bappenas, on the same occasion, explained that his party had completed the 2025-2045 National Long-Term Development Plan (RPJPN) document, which prioritized the principles of sustainable development. One of the main targets is reducing greenhouse gas (GHG) emissions by up to 95% in 2045. He says lowering emissions is closely related to developing a greener economy. In particular, in Indonesia in 2025-2045, RPJPN targets Indonesia’s per capita income to be equivalent to developed countries of around US$30,300 and enter the 5 (five) most significant economies globally.

“Reducing emissions should not be seen as just reducing emissions, and must consider economic development. Green economic interventions with low-carbon development will increase the environment’s carrying capacity and reduce GHG emissions while encouraging Indonesia’s average GDP growth in 2022-2045 to reach 6-7%,” said Medrilzam.

However, Medrilzam highlighted the amount of investment required on average of IDR 2.377 trillion per year from 2025-2045 to implement green economic policies.

“To meet this need, policies are needed to strengthen green innovative financing, such as blended finance, impact investment, carbon taxes, and others. The green investment will also provide job creation benefits of up to 1.66 million jobs/year in 2045,” he said.

Ferike Indah Arika, Young Expert Policy Analysis Center for Climate Change and Multilateral Financing Policy, Fiscal Policy Agency, Ministry of Finance, explained it is crucial to have innovative financing to support climate mitigation and adaptation beyond the State Budget. He compared the accumulated funding for climate change mitigation needed in the 2018-2030 range to reach IDR 4.002 trillion, which is still far less than the investment required for green economy policies.

“The state revenue and expenditure budget (APBN), whose allocation is monitored for mitigation and adaptation activities, is still far between what we have and what is needed. This huge disparity in funding needs, of course, cannot only be met by the limited state budget,” said Ferike.

Nurcahyanto, Associate Policy Analyst, Directorate of Energy Conservation, Ministry of Energy and Mineral Resources of the Republic of Indonesia, explained that from the energy sector, to encourage the acceleration of GHG emission reduction, the termination of coal-fired power plants operation is one of the main contributions in reducing emissions in the power generation sector. Nurcahyanto emphasized that the draft roadmap for the early termination of coal-fired power plant operations with a target of retiring a total capacity of 4.8 GW of coal-fired power plants in 2030 has been completed and submitted to the Coordinating Ministry for Maritime Affairs and Fisheries, the Ministry of Finance, the Ministry of State Owned Enterprises (BUMN), and PT PLN (Persero) for comments.

 

Indonesia-South Korea Golden Jubilee: Advancing Bilateral Cooperation through Green Energy Partnership Toward Sustainable Energy Transition

Background

The diplomatic relations between the Republic of Indonesia and the Republic of Korea have been established since 1973. Since then, the two countries have continued to increase and improve their relations through bilateral, regional, and multilateral cooperation (Embassy of The Republic of Indonesia in Seoul), e.g. The ASEAN – Korea Free Trade Agreement (AKFTA), members of the G-20, and members of The Regional Comprehensive Economic Partnership (RCEP) in the Asia Pacific. In that manner, both countries try to strengthen their relations through economic cooperation and development agendas.

One of the important areas of cooperation for both countries is trade. Indonesia and South Korea trade increased significantly. The volume of international trade (export/import) between the two countries has increased significantly over the last 4 years. In 2021 the volume of trade reached $19.18 billion compared to 2017 when it reached $ 1.4 billion in 2017 (The Observatory of Economic Complexity). In pursuit of sustainable development, the two countries have also signed a Memorandum of Understanding on Comprehensive Cooperation in Energy Safety Management. This agreement opens up opportunities for broader bilateral cooperation to develop clean energy generation through solar, hydrogen, and wind power (MEMR, 2022). It can be interpreted that the countries have reached a high degree of interdependence, and it will be accelerated through the implementation of the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA) in 2023 (Indonesia Ministry of Trade).

These strong diplomatic relations should be directed to enhance the realization of the green economy, attain Sustainable Development Goals (SDGs), and meet the Paris Agreement agenda due to the world facing a climate crisis, considering both countries are members of the UNFCCC. In the 2050 Carbon Neutral Strategy of the Republic of Korea: Toward a Sustainable and Green Society, Korea has set its target to reach carbon neutrality by 2050. The country will harness green innovation and advanced digital technologies to create synergies between the Green New Deal and the Digital New Deal, the two pillars of the Korean New Deal. Also, it will support investment and development of innovative climate technologies, and will lead by example to help the international community jointly take efforts to reach carbon neutrality by 2050. This policy document has five key elements; 1) expanding the use of clean power and hydrogen across all sectors; 2) improving energy efficiency to a significant level; 3) commercial deployment of carbon removal and other future technologies; 4) scaling up the circular economy to improve industrial sustainability; and 5) enhancing carbon sinks. It concludes, in its domestic affairs, South Korea’s policy toward a green agenda, which is also reflected in its foreign investment, namely through supporting green infrastructure and ocean health in ASEAN (ADB, 2022), and energy investment development in Africa (AFDB, 2021).

At the same time, Indonesia is in the middle of a transition toward a greener economy. The country has set its climate target at 31.89% (CM1/self-effort) and 43.20% (CM2/with international support) by 2030 (The Enhanced NDC, 2022). In relation to economic growth, the energy sector’s target has been set at 12.5% and 15.5% emission reduction and will be achieved through renewable energy, energy efficiency, low carbon-emitting fuels, clean coal technology, gas power plants, and post-mine reclamations. Nevertheless, to achieve this target, Indonesia needs massive financial support and investment. According to IESR (2022), to reach Paris-aligned NZE by 2050, Indonesia needs 20 to 25 billion USD from 2021 to 2030 and 40 to 60 billion USD in annual investment. The Ministry of Energy and Mineral Resources forecasts that the investment required for Indonesia to attain net-zero emissions by 2060 will reach USD 1 trillion, or USD 29 billion annually. This calculation is only for the supply side, not the demand that includes transportation, building, and industry. It means Indonesia needs massive resources to transform its economic structure and achieve its climate target.

Considering this, both countries have common interests in terms of investment opportunities in financing clean energy infrastructure projects, technology cooperation, and there could be potential cooperation to advance further between the two countries in achieving their respective economic development and benefits.

With that regard, the Institute for Essential Services Reform (IESR) in collaboration with Solution for Our Climate (SFOC) from Korea would like to conduct a bilateral webinar between South Korea and Indonesia key stakeholders to explore the opportunity of strengthening and advancing partnerships in accelerating the energy transition agenda and achieving climate ambition with highlight clean energy infrastructure, electric vehicles, and clean energy investment themes.

Objectives

  1. To foster Indonesia-South Korea cooperation in accelerating the energy transition and climate ambition through scaling up a clean energy infrastructure
  2. To explore the opportunity of strengthening and advancing partnerships between Indonesia and South Korea’s key business stakeholders to contribute to tackling climate change through business
  3. To promote and increase the number of investments between Indonesia-South Korea, particularly in clean energy-related infrastructure, both in supply and demand

Continuous Effort in Paving the Way for Solar Energy in Indonesia

press release

Jakarta, July 26, 2023 – The Indonesia Solar Summit 2023, hosted by the Ministry of Energy and Mineral Resources and co-hosted by think tank Institute for Essential Services Reform (IESR), affirms the commitment to accelerate solar deployment in the country.  Solar energy has made it significantly into Indonesia’s NZE pathway, projected at 61% of total electricity sources by 2060. A previous separate study by IESR placed solar energy as the backbone for a zero-emission energy system by 2050.

Minister of Energy and Mineral Resources, Arifin Tasrif, mentioned solar energy is a crucial strategy to achieve 23% of the renewable energy mix within the next two years before 2025. However, he also emphasized the significance of having access to technology and funding to successfully utilize solar energy and meet the renewable energy mix target. According to him, investment in solar energy will easily flow into Indonesia if there is a significant demand in the country. 

“There are two crucial factors that must be considered to accelerate the use of solar energy. The first is the availability of technology, which requires support from the industry. The second is the availability of international and domestic coverage that needs to be mobilized. The target for the renewable energy mix is 23% by 2025, but currently, it only stands at 12.5%, leaving only two years to achieve this goal. Additionally, the aim is to reduce greenhouse gas emissions by approximately 290 million tons in 2030, which has increased to 358 million tons. To achieve this, various efforts are being made, including de-dieselization programs and converting fossil-fueled motorized vehicles to electric motors, to absorb emissions,” said Arifin. 

The progress towards solar energy adoption in Indonesia remains slow. The actual installed capacity of solar PV in 2022 is 271.6 MW or far below the plan of 893.3 MW, based on data from the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), MEMR. There are several factors that have hindered widespread adoption of solar energy, including complications with land ownership, lack of local experience and unattractive tariffs. Whereas, the latest technical potential is at 3,295 GWp, acceleration of solar deployment will be critical in achieving renewable energy and NZE targets. In the short term, 18 GW of solar energy is needed to attain a 23% renewable energy mix target by 2025, with an investment value of US$14.1 billion, based on BloombergNEF and IESR study. 

With the announcement of Just Energy Transition Partnership (JETP) last year at G20 Summit 2022 in Bali, Indonesia – a comprehensive investment and policy plan is currently drafted in consultation with relevant stakeholders, covering early coal retirements, just transition measures, and acceleration of renewable energy development. The US$20 billion partnership aims to peak Indonesia’s power sector emission by 2030, and solar energy has become a significant part of the planning due to its techno-economic advantage and high potential for greenhouse gases emission reduction. The first version of such a plan will be unveiled in August 2023.

Rachmat Kaimuddin, Deputy Minister for Infrastructure and Transport, Coordinating Ministry of Maritime and Investment Affairs revealed that to build solar energy industrialization, Indonesia needs to prepare the demand first. 

“Reflecting in this, we intervene in the country, for example through JETP, how we minimize dependence on fossil energy, can be in several forms such as reducing the output of coal-based power plants and creating new demand,” he explained. 

He also emphasized that Indonesia’s cooperation with Singapore for green electricity requires that solar modules and batteries must be produced in Indonesia, so that the demand that arises becomes a trigger for the PLTS industry in Indonesia to form. 

“We don’t want to only import in the future. We hope that a domestic industry will be formed while we are in the process of energy transition,” he said.

Antha Williams, who leads Bloomberg Philanthropies’ Environment Program stated that developing a homegrown solar industry is a key component to advancing Indonesia’s transition to clean, affordable, and reliable energy.

“By cultivating international partnerships to mobilize capital and scale domestic solar manufacturing capacity, Indonesia has the potential to realize its net-zero energy pathway goals through rapid deployment of clean energy projects. Bloomberg Philanthropies welcomes the opportunity to support Indonesia’s goal of becoming a leader in solar energy development.”

Fabby Tumiwa, the Executive Director of IESR, stated that over the last two years, a new market has emerged, utilizing solar PV not only for selling electricity but also for producing new value-added products, such as green hydrogen and ammonia. Based on IESR data, there are currently 10 green hydrogen and ammonia projects that have been initiated since last year, intending to use solar energy as their primary electricity source. These projects are currently in the study phase and are expected to be realized within the next 2-3 years. Fabby also pointed out that experiences from various countries, including some developing ones, demonstrate that constructing Gigawatt-scale solar power plants within a year is an achievable feat.

Fabby highlighted three essential supporting factors to encourage the development of solar PV, “Firstly, it requires political will and strong, active leadership from the government, along with the establishment of transparent and sustainable policies and regulations. Secondly, there is a need for the development of an integrated ecosystem, which involves defining quality standards and guarantees for solar modules, ensuring the availability of qualified and trained human resources. Lastly, it is crucial to foster the growth of an integrated and competitive solar PV manufacturing industry.”

Indonesia’s Chairmanship in ASEAN 2023 presents an opportunity to engage the public and raise awareness about the benefits of solar PV adoption. Public outreach campaigns, educational programs, and community-driven initiatives can inform people about the environmental advantages, economic benefits, and energy independence that come with solar PV usage. Building public support and understanding can facilitate smoother and more widespread adoption of solar PV technology. Besides that, Indonesia’s Chairmanship can set a precedent for solar PV adoption in ASEAN through policy alignment, regional cooperation, investment promotion and innovation. It is timely to promote and drive domestic solar industries and supply chains in parallel with fast deployment of solar projects. 

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.***

ANTARA | IESR Urges G20 Countries to Prioritize Solar Energy to Achieving NZE

The Executive Director of the Institute for Essential Services Reform (IESR), in a webinar entitled “Shine Bright: Advancing G20 Solar Leadership,” which was monitored online in Jakarta, stated that the G20 has a big responsibility to suppress global warming because the G20 contributes up to 80 percent of CO2 emissions from energy use.

Read more on ANTARA.