Towards an Energy Transition in Indonesia

Builds upon the Indonesia Energy Transition Outlook report released in 21 October 2022, the Indonesian Ministry of Energy and Mineral Resources and the International Renewable Energy Agency (IRENA) organized a technical workshop with the theme “Towards Energy Transition in Indonesia, Fostering Green and Sustainable Energy”.

The Indonesia Energy Transition Outlook explores the role of end-use sector electrification, expansion of renewable generation, energy efficiency solutions, emerging technologies such as electric vehicles, hydrogen and battery storage-systems, as well the importance of expanding inter-country and regional power sector integration. Indonesia presents challenges stemming from its diverse geography which when coupled with an expected five-to-six-fold increase in electricity demand in IRENA’s 1.5-S by 2050, and subsequent phase out of coal power capacity, there is need for a significant and accelerated shift in the power sector towards renewables and greater regional interconnection.

The workshop discussed the main findings from IRENA’s Indonesia Energy Transition Outlook, focusing primarily in-depth discussion on the power sector, detailing how power capacity expansion and flexibility will need to go hand in hand while expanding domestic transmission, regional interconnection, and enabling technologies such as storage, as well as identifying barriers and enablers in the power sector to foster flexibility, market integration and renewable energy integration.

It is highly desirable to explore how comprehensive and integrated policy frameworks can address the most significant barriers to deployment and investment in the power sector from a technical, legal, financing and institutional perspective to exploit Indonesia’s unique opportunity to develop a sustainable energy system based on renewable energy resources that can support recovery and development while addressing climate change mitigation and adaptation strategies, and accomplishing energy security, universalization and affordability goals.

Participated by the country’s power sector actors from governments, national utility company, international organizations, and the financial institutions, the workshop aimed to gather key stakeholders and to strengthen their capacities to identify best practices and policies that promote an electricity supply sector that meets demand and security of supply in a green and sustainable manner.