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Presidential push may kickstart Indonesian transition from coal to renewables

first_imgPresidential push may kickstart Indonesian transition from coal to renewables FacebookTwitterLinkedInEmailPrint分享Mongabay:President Joko Widodo has reportedly expressed his intention to wean Indonesia off coal, in a move that runs counter to his own administration’s stated policy of increasing the country’s reliance on the fossil fuel.The president made the announcement at a July 8 cabinet meeting, according to Siti Nurbaya Bakar, the minister of environment and forestry. “[T]he president emphasized that we must develop the energy sector with a focus on renewable energy,” Siti said at a recent event in Jakarta. “Therefore, the president has explicitly asked to ‘start reducing the use of coal.’”If the administration follows through on the statement with concrete policies to phase out coal use, this could signal the beginning of a transition to renewable energy for Indonesia, the largest energy consumer in South East Asia and one of the biggest consumers of coal in the world, analysts say.But any meaningful change will have to start with an overhaul of the electricity procurement plan, or RUPTL, by the state-owned utility, PLN. At present, the RUPTL calls for increasing the absolute figure for renewable power generation over the long term, but shrinking its share of the overall energy mix in favor of more coal-fired electricity.The ideal plan would have to offer both fiscal and non-fiscal incentives that would lower the price of renewable power to make it competitive with coal, said Elrika Hamdi, an analyst at the Institute for Energy Economics and Financial Analysis (IEEFA). “What’s also important is that the policies taken should be consistent and in effect for a long time in order to give assurance to investors and funders,” she added.Indonesia is currently one of the world’s biggest CO2 emitters, most of it from deforestation and land-use change. However, emissions from the energy sector are poised to dominate in the near future as Indonesia’s demand for electricity continues to rise. The country’s energy consumption growth is among the fastest in the world, with coal accounting for nearly 60 percent of the energy mix in 2018. Its energy policy therefore has important implications not just for the country’s climate future, but also for global efforts to achieve cuts under the Paris Agreement.More: Indonesia’s president signals a transition away from coal powerlast_img read more

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