Indonesia plans to eliminate all coal-fired and fossil-fueled power plants within the next 15 years, President Prabowo Subianto announced at the G20 summit in Brazil. The country, heavily dependent on coal for energy, aims to shift towards renewable sources as part of its transition to greener energy.
“Indonesia is rich in geothermal resources, and we are committed to phasing out coal and all fossil-fueled power plants in the next 15 years,” President Subianto said during his speech at the summit.
To support this shift, Indonesia intends to add more than 75 gigawatts (GW) of renewable energy capacity over the next 15 years. The country’s goal is to reach net-zero emissions by 2050, with efforts including the expansion of biodiesel production and the conversion of existing coal plants to renewable energy.
The challenge ahead for Indonesia is significant. Currently, nearly 80% of the country’s electricity is generated from coal and natural gas, according to BloombergNEF data. As of the end of 2023, Indonesia had installed less than 1 GW of combined wind and solar power.
At the COP29 summit, Indonesia’s climate envoy Hashim Djojohadikusumo revealed that the country aims to install 100 GW of new energy capacity in the next 15 years. Of this, 75%—or 75 GW—will come from renewable sources.
Indonesia’s total power capacity now exceeds 90 GW, with coal making up a large portion. Renewables currently account for less than 15% of the country’s energy mix.
In late 2022, Indonesia signed the Just Energy Transition Partnership (JETP) agreement, co-led by the U.S. and Japan, and including several other wealthy nations. This partnership is designed to support Indonesia’s move away from coal. However, a government official stated in September that Indonesia has yet to receive a significant portion of the $20 billion in funding promised by these nations to help with the transition.
Despite these challenges, Indonesia’s commitment to green energy marks a significant step toward a cleaner, more sustainable future.
Related Topics: