Energy Ministry, IEA Launch NZE Roadmap

2 September 2022 The Ministry of Energy and Mineral Resources (EMR), in cooperation with the International Energy Agency (IEA), has unveiled the Indonesia Net Zero Emission (NZE) Roadmap for the energy sector of 2060. The Roadmap shows that Indonesia, as part of the global community, is committed to the climate change mitigation actions.

“I’d like to express my highest appreciation to the IEA for its collaboration in preparing the appropriate mitigation action trajectory, not only in the electricty sector but also in the demand sector,” said Minister of EMR, Arifin Tasrif, at the launching of the NZE Roadmap on the sidelines of the G20 Energy Transitions Ministerial Meeting (ETMM) held at Grand Hyatt Bali, on Friday (1/9). Arifin went on to say that the Ministry of EMR and IEA have identified several mitigation actions, including the massive development of renewable energy with a focus on solar, hydro, and geothermal energy; the gradual phase down of coal-fired power plants, the use of low-emission technologies such as super grid to improve connectivity and Carbon Capture, Utilization, and Storage (CCS/CCUS); conversion to electric vehicles, the use of efficient equipment for the industry, transportation, and building sectors as well as the use of new energy such as nuclear, hydrogen, and ammonia.

Arifin has also underlined that additional generation capacity after 2030 will come only from new and renewable power plants. “Starting 2035, Variable Renewable Energy (VRE) will dominate, while nuclear power plant will enter the system in 2049,” Arifin added.

According to Arifin, technology and innovation are a common challange to realizing more accessible and affordable clean energy. “Cooperation and technological solutions are vital to decarbonize the electricity and industry sectors. We have to prioritize research, development, and deployment for next generation technology,” continued the Minister.

Additionally, Arifin said that international support and cooperation are of utmost importance. “Everyone has their share in green energy development. Therefore, technology and finance must be widely available and accessible to all countries,” Arifin concluded.

On the same occasion, IEA Executive Director Fatih Birol said Indonesia has to conduct policy reform to make way for the transition to renewable energy and reduce reliance on coal. The NZE Roadmap is a step on the journey to net zero emission by 2060.

“Indonesia has the opportunity to show the world that for countries that rely heavily on fossil fuel exports, the road to net zero emission is not only feasible but also beneficial,” said Fatih.

Based on an IEA study, continued Fatih, Indonesia has to triple its energy investment amount in 2030 than the current level. The organization’s latest report “The IEA’s Energy Sector Roadmap to Net Zero Emissions in Indonesia” has identified an additional investment need of USD8 billion annually.

According to Fatih, the mobilization of the additional finance will also depend on the support of international financiers through a Just Energy Transition Partnership (JETP) program. “I’d like to request Indonesia international partners to mobilize the clean energy financing through JETP and ensure the transfer of technology because JETP will immensely benefit Indonesia and the world,” Fatih commented.

IEA is particularly keen on solar energy. “Indonesia has enormous potential for solar. We hope more projects will be implemented at a competitive price and there will be more promising projects,” added Fatih. Meanwhile, Director General of New, Renewable Energy and Energy Conservation of the Ministry of EMR, Dadan Kusdiana, confirmed the NZE Roadmap will be used for detailing the Indonesia NZE roadmap outlined at COP26 in Glasgow. “We want to make sure that the roadmap works, in terms of competitiveness. We are confident the transition will not lower Indonesia’s competitiveness,” Dadan concluded.

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