Indonesia slashes its 2030 target for carbon emissions from the power sector and boost its renewable energy generation share in a draft roadmap released on Nov. 1 for $20 billion in financing from rich nations to wean off coal.
Under the plan, Jakarta has pledged to lower its power sector emissions to 250 million tonnes by 2030, down from a previous cap of 290 million. It also plans to boost its renewables generation share to 44% by 2030, up from an initial target of 34%.
CIPP to cut carbon emissions, boost renewable energy
The draft plan, called the Comprehensive Investment and Policy Plan (CIPP), will be evaluated, and revised regularly.
Edo Mahendra, head of the JETP secretariat in Indonesia, said that “The CIPP is a living document that will be updated annually to reflect the latest global economic condition and domestic development priorities.”
The draft plan outlines a strategy to retire coal-fired power plants, increase renewable energy sources and modernize the electricity grid. It also targets to ensure a fair and inclusive transition that minimizes the social and economic impacts of the shift to green energy.
The country relies on coal for electricity generation, which provides over 60% of its power supply. Coal is a major source of income and employment for many Indonesians.
Indonesia is aiming to reach net-zero emissions by 2050 in return for financing for the $20 billion Just Energy Transition Partnership (JETP) plan.
The JETP was announced at the G20 summit in Bali in 2022. Led by the U.S. and Japan, the JETP was signed by Canada, Denmark, the EU, France, Germany, Italy, Norway and the U.K.
The two-week public review of the plan began, and citizens can submit inputs through the JETP website. The final version is expected to be launched before the COP 28, to be held in Dubai, from Nov. 30 to Dec. 12, the JETP secretariat said.
Captive coal-fired power plants are left out
The plan excludes captive power plants from its emissions target saying it was an “extremely complex” issue. Such plants generate power off the public electricity grid and are operated and used by large industries.
“Many industrial power users, such as those companies mining and processing nickel, require highly reliable, 24-hour power at a high volume. Further, these industrial operations are often located in remote and/or ecologically sensitive areas,” according to the plan.
And this “growing pipeline” of captive power plants to support the development of industrial facilities “are viewed as essential to realizing the government’s industrial down-streaming strategy for economic development.”
The plan identifies five priorities for investment including developing transmission and distribution networks, phasing out coal plants, accelerating renewable energy deployment and enhancing the renewable energy value chain.
It also proposes policies to support the energy transition, such as reforming local content rules, improving procurement processes, adjusting supply-side incentives, and ensuring the state-owned electricity firm PLN is financially sustainable.