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Indonesia releases new pathway for energy transition
8/11/2023
A newly recommended pathway for Indonesia’s energy transition details plans to increase the country’s solar and wind capacity to over 37 GW by 2030.
The Comprehensive Investment and Policy Plan (CIIP) aims to increase Indonesia’s share of renewable electricity generation from the initially announced 34% to 44% and limit emissions to 250mn tCO2e by 2030, from a previous target of 290mn tCO2e.
The proposed CIPP looks to rapidly increase solar and wind capacity from less than 1 GW to over 37 GW by 2030 – and aims for 14% power generation from solar and wind by 2030. The proposed plan also recommends bringing forward Indonesia’s target for a net zero power sector from 2060 to 2050. Currently more than half of the electricity capacity in Indonesia is fuelled by coal.
The plan is to be financed by the Just Energy Transition Partnership (JETP), which was announced at the G20 last year.
Commenting on the announcement, Rini Sucahyo, Asia Communications Manager at think tank Ember, says: ‘The ambitious renewables target sets the foundation for a clean energy transition in Indonesia. This is a significant step towards a cleaner electrified future for Indonesia, potentially leading to more equitable and widespread access to electricity for the Indonesian people. The targets outlined in the document should also serve as a benchmark for other developing nations to pursue such ambitions, aligned with the global call to triple renewables by 2030.’
Dave Jones, Ember’s Global Insights Lead, adds: ‘Indonesia had been recognised as the most coal-dependent of any country in the world, so the importance of this deal cannot be overstated. If Indonesia can make this about-turn from coal energy to clean energy, any country can. This is the latest example of how innovative financing from developed countries can unlock the money needed to supercharge the clean transition this decade. But more money is needed, and all eyes will look to what is possible in India in 2024.’
