Will Indonesia Become A Green Energy Exporter?

Country Overview

The Republic of Indonesia is an archipelago nation of 17,000 islands located between the Indian Ocean and the Pacific Ocean. The population of Indonesia is approximately 277.53 million people.

In 2022, Indonesia’s economy was ranked 16th in the world in gross domestic product (GDP). The country’s economy is dependent on the export of coal, palm oil, natural gas, ferroalloys, large flat-rolled stainless steel, stearic acid, and lignite.

Environment Policies

In 2016, Indonesia signed the Paris Climate Agreement, committing to a to a 29% reduction in greenhouse gas emissions by 2030, compared to business-as-usual.

In November 2023, Indonesia launched a renewable energy investment plan to access U.S. $20 billion in financing pledged by global lenders led by the United States and Japan to accelerate its power sector decarbonization.

Power Generation Capabilities

In 2021, 99.2% of the people in Indonesia had  access to electricity. In 2022, the state-owned utility, PT Perusahaan Listrik Negara used coal (61.6%), renewable energy (19.6%), natural gas (17.0%), and refined petroleum (1.8%) to generate electricity in Indonesia. Hydropower, biomass, and geothermal are the dominant types of renewable energy used to generate electricity in Indonesia.

Recent renewable energy projects in the Indonesia include:

  • 3,500 MW Solar + 12,000 MWh Energy Storage Project –American renewable energy developer Quantum Power and German solar company Ib Vogt are continuing work on a solar plus battery energy storage system (BESS) project on the Riau Islands, which are located between the Indonesian island of Sumatra and the Malay Peninsula. The project is forecast to be completed in 2032.
  • 2,200 MW Floating Solar Project – Singaporean solar company, Sunseap is continuing work on a massive floating solar project at the Duriangkang Reservoir on the island of Batam. The project is forecast to be commissioned in 2024.
  • 1,040 MW Energy Storage Project – PT Perusahaan Listrik Negara is continuing work on the Upper Cisokan Pumped Storage Power Plant in western region of the island of Java. The project is forecast to be commissioned in 2025.
  • 145 MW Floating Solar Project – In November 2023, United Arab Emirate (UAE) renewable energy company, Masdar and Indonesian energy company, PT PJB completed a floating solar project on the Cirata Reservoir in western region of the island of Java.

Conclusions

Fossil fuels (oil, natural gas, and coal) were first exported from Indonesia in the late nineteenth century. In 1885, Royal Dutch Shell began exporting crude oil from Indonesia. In 1977, Indonesia began exporting liquified natural gas (LNG). In 2000, Indonesia became a major exporter and consumer of coal.

In 2022, Indonesia was the 2nd largest coal, 18th largest natural gas, and 37th largest crude oil exporting country in the world. Exports of fossil fuels have been the foundation of Indonesia’s economy. 2021, Indonesia exported U.S. $28.4 Billion in coal and U.S. $8.06 Billion in liquified natural gas (LNG).

Indonesia has vast undeveloped renewable energy resources, including geothermal, biomass, solar, onshore wind, and offshore wind. Indonesian government studies indicate the country could generate all the nation’s electricity from renewable energy resources.

Indonesia is now actively developing the nation’s vast renewable energy resources for domestic power and zero-carbon energy export, including electricity by marine cable to Singapore and production of green hydrogen. Indonesia is now becoming a green energy exporter.

Jack Kerfoot

Website – “Our Energy Conundrum”

www.jack kerfoot.com

 

Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles discussing a diverse range of energy issues and topics.

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