• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»3 Takeaways From Indonesia’s Just Energy Transition Roadmap
Finance

3 Takeaways From Indonesia’s Just Energy Transition Roadmap

November 8, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
3 Takeaways From Indonesia’s Just Energy Transition Roadmap
Share
Facebook Twitter LinkedIn Pinterest Email

Indonesia’s Just Energy Transition Partnership, the $20 billion fund earmarked for investment in clean energy, took a big step forward in November with the release of the Comprehensive Investment and Policy Plan. One of the requirements under the JETP framework is to prepare a roadmap for how Indonesia will accomplish its energy transition goals (peak emissions in 2030, net zero by 2050). This document is the first step. Here are three key takeaways.

First, coal is still going to play a major role in the near-term. Part of the overall decarbonization strategy is, in theory, to retire coal-fired power plants before the end of their useful economic lives. I have long thought this was a hugely difficult puzzle to solve. These power plants can cost billions of dollars to build and investors expect to recoup their capital over many decades of operation.

Such projects involve complex financial and contractual obligations, and early retirement requires renegotiating the contracts and essentially buying out the shareholders and management. There are ways to do this, but they aren’t very palatable as no one wants to be seen doling out cash to owners of coal-fired power plants.

In the current plan, only two plants totaling 1,700 MW of coal-fired capacity will be retired early and these will still run until 2037. The focus will shift instead from early retirement to repurposing of existing coal capacity, meaning much of Indonesia’s coal-fired fleet will continue operating, but efforts will be made to minimize the amount of power they are supplying to the grid.

See also  How Will the Prabowo Administration Approach Indonesian Energy Policy?

Captive coal – off-grid power plants built specifically for industries like smelting, and which have seen tremendous growth in recent years – have been omitted entirely from the plan. It was too hard to make the numbers work, so the parties agreed to deal with it later.

Second, $20 billion is not enough. By 2030, total investment needs for Indonesia’s energy transition are estimated to reach $96 billion. This includes $49 billion in dispatchable renewables (mainly geothermal and hydro), $25.7 billion in variable renewables (solar and wind) and nearly $20 billion in transmission and grid improvements. Even if the JETP reaches its full planned commitment over the next five years, it will still be approximately $76 billion short.

That’s not as a big a problem as it might seem. Those figures are just guesses and sources of financing outside of the JETP are plentiful. Indonesia has increasingly deep domestic capital markets, and the balance sheets of its big state-owned banks are solid. The government’s fiscal health is also pretty good at the moment, and this creates opportunities to directly and indirectly plug the financing gap. I imagine China, having been omitted from the JETP, could play a big role in financing renewable energy if it wanted to as well.

Back in 2020, I published a paper arguing that the big challenge in Indonesia’s energy transition is not about mobilizing the financing. It is matching the financing with projects that are ready to be funded at scale and can be planned, approved, built and connected to the grid quickly. This remains the biggest challenge today

See also  The Potential China-Uruguay Trade Deal Risks Fracturing Mercosur

Third, solar needs to grow. By a lot, and fast. According to the JETP model, total installed solar capacity needs to reach 29.3 MW by 2030, a quantum leap from the 0.1 MW as of 2022. By 2050, solar will be the main source of Indonesia’s electricity.

To build solar at this scale and pace the JETP calls for a number of policy reforms, including overhauling the business model of state-owned electric utility PLN, improving planning and procurement processes, and having PLN do some of the most difficult parts of project development like land acquisition.

Historically, Indonesia has struggled to attract private investment in renewable energy. It will be critical that PLN is able to onboard more solar at utility scale very quickly if the JETP scenario is to have any chance of success. One of the biggest unknowns at this time is whether the policy enablers detailed in the plan will help accomplish that.

This is a long-term plan, which models highly uncertain possibilities about how the energy sector in Indonesia will evolve over the next three decades (apparently 10,000 MW of nuclear power awaits us in the future). But the next five to 10 years will be what actually matters, because they are the proof of concept.

Emissions from coal power plants are going to increase in the near-term. This is part of the plan. As long as renewable energy is added at a fast enough rate to replace that coal-fired capacity, it will be a strong indicator that things are on track even if they undershoot the highly optimistic projections in the model. The financing, I believe, will be there.

See also  How Serious is Malaysia About a Clean Energy Transition?  

The more important question is whether the right approach and mechanisms are being implemented to match that financing with feasible projects in a way that is suited to Indonesia’s political economy. From my reading of this document, the JETP in its current form seems to lean toward a market-based approach, where PLN and the Indonesian state will use tools like price signals and adjustments of risk allocation to make renewable energy projects more attractive to private developers and financial institutions. That approach has not always been the best fit for Indonesia. Five years from now, I guess we will know if this time is different.

energy Indonesias Roadmap Takeaways Transition
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025

How China’s Companies Are Responding to the US Trade War

April 16, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Liza Minnelli’s Sad Last Days: 77-Year-Old Isolated at Home

September 21, 2023

Female Boxer Refuses to Fight Trans Opponent in Canadian Championship Match

November 16, 2023

Morgan Wallen gets trashed by fans for using Pat Tillman for clout

July 23, 2023

Charles Barkley weighs in on Bud Light partnership with Dylan Mulvaney

July 16, 2023
Don't Miss

Short and Funny Sayings for a Happy Summer with Friends

Lifestyle May 9, 2025

I love the beach. Just looking at the calming sea to relax. Having fun in…

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,627)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

US Steel Blast Furnace ‘Saved’ by Trump Now Idled on UAW Strike

September 19, 2023

Arrest Warrant Issued for Bills’ Von Miller for Allegedly Assaulting Pregnant Girlfriend

November 30, 2023

Hollywood actor Tim Robbins blames media, Democrats for censorship

April 30, 2023
Popular Posts

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.