
Missing the 23 Per Cent Target: Roadblocks to the development of renewable energy in Indonesia
On January 25, 2017, Indonesian Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan stated, “Indonesia is resolved to increasing its new and renewable energy mix to 23 per cent in 2025 in line with its commitment to reducing its greenhouse gas emissions it had made during the COP 21 conference in Paris in 2015.”
The commitment to increase renewable energy was made as part of a package of measures to tackle climate change in Indonesia’s Nationally Determined Contribution (NDC) that pledged to reduce emissions by 26 per cent against the business-as-usual scenario by 2020 and 41 per cent if international support is granted.
With this high-level commitment to a marked expansion of renewable energy—together with the international context of falling renewable energy prices—one might expect that renewable energy in Indonesia would be booming. However, since 2007 most of the increase in electricity production has come from coal and the share of renewable electricity production has remained relatively static, at around 12 per cent of total generation.
Between 2007 and 2016 hydro and geothermal capacity increased by 39 and 67 per cent respectively. But overall installations pale in comparison to coal, while solar remains almost nonexistent (45 MW total).
This report seeks to answer the question of why renewable energy deployment, particularly wind and solar, has not taken off in Indonesia. To understand the forces shaping the sector, and what can be done to remedy the situation, IISD conducted interviews with politicians, civil servants, industry representatives, renewable energy developers, civil society organizations, international donors and other stakeholders. A total of 26 interviews took place, revealing the roots of the problem, the broader political economy of the energy sector and some possible ways forward.
Additional downloads
You might also be interested in
LNG the wrong choice at the wrong time for B.C.
As 2023 begins, B.C. Premier David Eby and his new cabinet are setting priorities and determining which policies of the Horgan government to carry forward and which to cast aside. Liquefied natural gas exports touch on a host of critical issues that Eby and key ministers are considering.
Fighting for a place to breathe
In the shadow of a retired coal-fired power plant in India's capital, Meena Devi tries to make her family home -- four brick walls with a tin roof -- a safe place to breathe.
Subsidies for renewable energy and EVs more than double: Study
Nagpur: India’s subsidies for renewable energy and electric vehicles more than doubled this fiscal, according to a new study by independent think-tank International Institute for Sustainable Development (IISD). However, it also found that it will be critical for the government to build this momentum over the coming years to reach the country's climate targets.
EV subsidies in India doubled in FY 2022: IISD report
According to a recent study conducted by IISD (International Institute for Sustainable Development) subsidies for renewable energy and EVS in India have more than doubled in FY 2022. India still allocated four times more support to fossil fuels than clean energy, although the gap narrowed significantly since FY 2021 when support was nine times greater.