How can Indonesia tackle short-term power system challenges?

The overarching objective of the assignment was to assist Indonesia in tackling short-term power system challenges, by achieving key targets such as reaching a 23% share of renewable energy in the national electricity mix by 2025 in a secure and affordable fashion, and by making grids progressively smarter.

Does Indonesia have a power sector boom?

Coal use in the electricity sector in the past ten years has nearly doubled, contributing to a sharp rise in overall power sector emissions, totalling 86 million tonnes of CO2 (MtCO2) from 2013 to 2023, mainly from coal. Indonesia has not yet seen a boom in renewables, resulting in fossil fuels meeting its electricity demand growth.

Will Indonesia's energy transition be a good idea?

Evidence suggests that Indonesia’s energy transition should be well under way. The government has set a target to support renewable energy development in the New Energy and Renewable Energy Bill through increasing on-grid renewable capacity, converting diesel power generation to solar and expanding rooftop solar.

How much money does IPG invest in Indonesia's power sector?

This financial commitment aims to expedite the decarbonisation of Indonesia’s power sector, striving for ambitious cuts in emissions. Half of the funds are pledged by IPG members, further catalysing at least USD 10 billion in private finance, supported by the Glasgow Financial Alliance for Net Zero Working Group.

Will Indonesia see a boom in renewables?

Indonesia has not yet seen a boom in renewables, resulting in fossil fuels meeting its electricity demand growth. The National Energy Policy (NEP) 2014 set a target of 23% of renewables in the energy mix by 2025, however, this target is likely to be reduced to between 17-19% in the revised NEP currently being developed.

Does Indonesia have a good solar system adequacy?

System adequacy has been assessed using a reserve margin metric, but this method is not the best fit for a system with a high contribution from solar and wind resources. Indonesia currently sets high reserve margin criteria, contributing to the overbuilding of power plants.