Indonesia

Indonesia is the largest consumer of energy in Southeast Asia, accounting for more than 36% of the region's energy demand. The country's daily peak electricity demand is increasing rapidly and is projected to double in the next ten years. Rapid adoption of appliances in Indonesia is driving this unprecedented increase in electricity demand, stressing electrical grids, raising energy costs, and contributing to local air pollution and global impacts. Ambitious energy-efficiency policies are urgently needed to address this growing challenge.

Berkeley Lab collaborates with the Coordinating Ministry of Maritime Affairs and the Ministry of Energy and Mineral Resources (MEMR) in Indonesia in three main areas:

  1. 10-GW Energy Efficiency Plan
  2. Modeling and tools deployment
  3. Renewable Energy and other clean energy issues

10-GW Energy Efficiency Plan

Indonesia needs more ambitious regulations on energy efficiency in order to achieve its national clean energy goals.

In its most recent 10-year electricity procurement business plan (RUPTL 2018-2027), the Government of Indonesia (GoI) set the ambitious target to add 56 gigawatts (GW) of electricity capacity by 2027 (mostly thermal). In addition, the GoI is working toward a 23% national target on Renewable Energy by 2025, and National Determined Contribution (NDC) of 29% to 41% reduction vs BAU (business-as-usual) in 2030.

Through its research, Berkeley Lab has identified over 10 GW of savings through appliance energy efficiency policies, which could help bridge the gap for future additional capacity needs, and help achieve Indonesia's clean energy goals. The roadmap defines essential components in order to develop and implement impactful energy efficiency policies through S&L and complementary programs.

Since 2016, Berkeley Lab has hosted a number of high level delegations from GoI led by the Coordinating Ministry of Maritime Affairs to discuss and jointly develop a plan to achieve the 10 GW potential for energy efficiency. In addition, Berkeley Lab hosted several delegations led by Parliamentary Commission VII to discuss Renewable Energy and Geothermal issues.

Reception at Consulate of Indonesia in San Francisco, March 2018

Reception at Consulate of Indonesia in San Francisco, March 2018

Modeling and Tools Deployment

Through its technical assistance activities, Berkeley Lab provides key staff in Indonesia with the capacity and technical resources to analyze and create the evidence base to inform more ambitious energy efficiency policies.

Using the BUENAS model combined with typical daily load curves for over 10 electric end-use products, our research estimates future impacts of energy efficiency programs on generation capacity demand.

Peak Load Analysis for Indonesia

The analysis shows that efficient technologies providing a net financial benefit to the consumers could avoid the construction of up to 15-25 large power plants by 2030.

Space cooling is by far the end-use with the most potential for reducing peak load demand through implementation of energy efficiency policy. Considering this, Berkeley Lab further supported MEMR in evaluating the market baseline efficiency for ACs by deploying IDEA, the international database of efficient appliances and the PAMS model to evaluate policy impacts under various efficiency scenarios.

Renewable Energy and Other Clean Energy Issues

Responding to specific requests, Berkeley Lab has briefed CMMA and Parliamentary Commission VII on international trends in Renewable Energy (RE) and Clean Transportation.

Globally, including in major emerging economies like India, solar and wind energy prices have fallen by over 70-80% in the last 10 years. In Indonesia, however, RE costs are still much higher than the recent market trends in other countries. Learning from international successes, Indonesia needs well-vetted policy and regulatory mechanisms to make clean energy more competitive and meet its national target of renewable energy sources contributing to 23% in the total energy mix by 2025.

International experience in price trends for Renewable Energy

International experience in price trends for Renewable Energy

Given rising incomes and urbanization, Indonesia's transportation energy use and emissions are expected to increase significantly in the next 1-2 decades. Electric vehicles (EVs) can reduce emissions, enhance the local air quality, and, if charged smartly, help in RE grid integration. Given the steep reduction in battery costs, EVs are already cost-effective, especially for high mileage vehicles like taxis & buses. Indonesia has a unique opportunity to leapfrog to EVs as most vehicles that will operate in the future have not been designed and manufactured yet.

  Cars per 1000 People

 

Sponsor(s)

Overlook International Foundation
US Department of Energy
SEAD Initiative

Collaborators

Coordinating Ministry of Maritime Affairs (CMMA) Indonesia
Ministry of Energy and Mineral Resources (MEMR) Indonesia
MASKEEI (Indonesia Energy Conservation and Efficiency Society)
IESR (Institute for Essential Service Reform)