Renewable Energy Institute releases today "Southeast Asia Power Sector Decarbonization: Country Case Study – Indonesia".
Indonesia is Southeast Asia’s demographic and economic heavyweight. It is also the region’s largest power system. Until now, coal has fueled Indonesia’s growth. Continued reliance on this very polluting fuel is, however, environmentally unsustainable, and incompatible with the country’s 2060 net zero emissions objective.
Because of its market size and its heavy dependence on coal power, Indonesia is a meaningful testbed for Japanese costly immature decarbonization technologies: coal-ammonia cofiring, and carbon capture and storage for electricity generation.
Therefore, Indonesia is one of the countries at the heart of Japan’s two key international decarbonization initiatives: the “Asia Zero Emission Community” and the “Asia Carbon Capture, Usage and Storage Network”.
Focusing on the power sector, this report first describes Japan’s misleading strategy towards Southeast Asia and its impact in Indonesia. Then, it explores Indonesia’s great renewable energy opportunities. Finally, it addresses four major challenges impeding renewable energy accelerated growth in this country.
With this publication, Renewable Energy Institute aims at updating outdated mindsets. Particularly those of influential Japanese energy decision makers, who despite robust evidence in favor of renewable energy, wrongfully keep promoting fossil power in Indonesia.
Southeast Asia Power Sector Decarbonization
Country Case Study: Indonesia
<Table of Contents>
Introduction
Chapter 1: Japan’s Misleading Decarbonization Strategy Towards Southeast Asia
1) Japan’s “Asia Zero Emission Community” and “Asia Carbon Capture, Usage and Storage Network”: backward initiatives
2) Impact of the “Asia Zero Emission Community” in Indonesia
3) Impact of the “Asia Carbon Capture, Usage and Storage Network” in Indonesia
Chapter 2: The Correct Narrative: Indonesia’s Great Renewable Energy Opportunities
1) A significant, largely untapped renewable energy potential
2) Renewable energy cost competitive against fossil power
3) Reaching high shares of renewable energy electricity is feasible and profitable
4) Industrial developments made possible by the energy transition
Chapter 3: Unleashing the Growth of Renewable Energy in Indonesia: Four Challenges to Overcome
1) Weak medium-term decarbonization policies
2) Coal power lock-in
3) Incomplete electricity system reform
4) Electrical grid expansion
Conclusion
