IRENA Report: Indonesia Energy Transition Outlook

Recently IRENA (The International Renewable Energy Agency) published a report on Energy Transition Outlook. This report offers an extensive, long-term energy roadmap that emphasises renewable energy sources for Indonesia’s transition to a cleaner, more sustainable energy system.

As one of the Association of Southeast Asian Nations (ASEAN) members with the largest energy consumption, it is projected that over the next few decades, as its population and economy expand, so will its energy consumption.

Indonesia is in a unique position to establish a sustainable energy system based on renewable energy that can promote economic development, address climate change, and achieve energy security, universalization, and affordability goals because of its wealth of renewable resources. 

By geographical size, population, and gross domestic output, the Republic of Indonesia (often known as Indonesia) is the largest ASEAN member state (GDP). Its population is projected to increase to 335 million people during the next three decades, while the economy is anticipated to more than triple in size and the major energy supply to grow threefold.

The nation is faced with a choice: use more of its home coal resources while simultaneously importing energy from outside on the open markets for oil and gas; or tap into the vast untapped potential of renewable sources that can offer locally produced, inexpensive alternatives to fossil fuels. The study demonstrates that the second option is more cost-effective, with renewable energy accounting for two-thirds of the nation’s energy mix in 2050, up from just 14% at present.

The energy mix of the nation can shift from one where fossil fuels predominate, currently meeting about 84% of energy demand, to one where electricity is rapidly adopted and will account for half of final energy consumption, with a further quarter of final energy coming from renewable direct-use sources. This entails increasing the production of electricity by a factor of five, to over 1 700 terawatt hours (TWh), as well as expanding the use of important renewable energy sources like solar, bioenergy, geothermal energy, and green hydrogen.

For further detailed information, you can download the report to click here.