Renewables are an expensive substitute for Indonesia’s coal dependence
#1

Andrew Digges
11 Nov 2021 06:19AM
(Updated: 11 Nov 2021 11:11AM)


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Indonesia has come under increasing pressure to tackle its significant reliance on coal.

Economic development and poverty reduction remain the Indonesian government’s primary goals. A stable democracy of 270 million people with consistent economic growth, the country still has a significant portion of its population living in poverty.

Maintaining growth will likely require ongoing reliance on coal for power. According to the International Energy Agency, 63 per cent of Indonesia’s electricity generated in 2020 came from coal-fired power. A mere 0.2 per cent came from solar, wind and waste.

Indonesia, the world’s largest thermal coal exporter, is also expanding coal mining and exports.

In fact, coal production surged 320 per cent from 2005 to 2019. Given high global coal prices and the influence of the Indonesian Coal Mining Association, it seems unlikely Indonesian mining and coal exports will diminish soon.

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A significant portion of the proposed emission reductions (58 per cent) will come from changes in land and forest use, with a pledge that forestry and land use will reach peak emissions by 2030. The next biggest contributor is the “energy sector” (38 per cent).

But the reality is that cheap power remains very important to Indonesia’s ongoing growth and coal remains a relatively cheap fuel, difficult to abandon.

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Indonesia’s plan to decommission all coal-fired power means that electricity supply will need to come from other sources, especially renewable energy to replace coal

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despite substantial declines in renewable energy costs over the last decade, shifting towards renewables remains a challenge for PLN because “the price of environmentally friendly power generation technology is still high”.

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Indonesia also has relatively limited viable energy resources. Enveloping the equatorial zone, only a few locations have good offshore wind potential.

A World Bank report on solar potential shows some decent irradiation data, particularly in the heavily populated Java-Bali and West and East Nusa Tenggara regions. However, the higher population density means land scarcity, which makes large scale solar development costlier.

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Given fiscal constraints and renewable resource restrictions, there are limits to how much Indonesia can achieve on decarbonisation.

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Indonesia acknowledged the need for outside help. Last week at COP26, President Jokowi asked  developed economies to contribute more funds and share technology in order for Indonesia to be able to ramp up its climate change efforts.


Much better to read full article here: https://www.channelnewsasia.com/commenta...nd-2300921
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