Updated: Oct 3, 2019
How the country takes advantage of the cost-competitiveness of renewable energy technologies and technological innovations to spur the Indonesian Energiewende (Energy Transition)?
The global energy transition is well underway. In 2018, the world added 181 GW of renewables-based installed capacity, nearly doubled the fossil fuel and nuclear-installed capacity. This becomes the fourth consecutive year where global net additions of renewable capacity were more than 50% of total additional capacity. Furthermore, BNEF reported that clean energy investment in developing and emerging countries (152.8 billion USD) exceeded the developed countries (131.6 billion USD). In terms of efficiency, energy efficiency for appliances and buildings has become global norms and standards that reduce growth in energy consumption.
Around the world, digitalization and disruptive technologies in the energy sector drive the energy transition further. Technology innovations would make a 100% renewable electricity supply in the middle of this century a plausible scenario. This has also been driving changes in the way of utilities doing their businesses.
The questions left for Indonesia: How the country takes advantage of the cost-competitiveness of renewable energy technologies and technological innovations to spur the Indonesian Energiewende (Energy Transition)? How can Indonesia contribute to reaching the target set in the Paris Agreement and UN SDG of the 2030 Agenda?
The opportunity, as well as the threats, to join the global energy transition need to be well anticipated and addressed by key stakeholders in the country’s energy and power sector with better knowledge and understanding of the current trends and its consequences.