According to a research report recently released by the International Renewable Energy Agency, if Indonesia's untapped renewable energy potential is released to meet the growing demand, it will be more cost-effective than continuing to rely heavily on domestic and imported fossil fuels.

The International Renewable Energy Agency (IREA) and the Ministry of Energy and Mineral Resources of Indonesia jointly released this survey report entitled "Prospects for Indonesia's Energy Transformation", which provides a comprehensive and long-term development approach focusing on renewable energy for Indonesia's transformation to a cleaner and more sustainable energy system.

Arifin Tasrif, Minister of Energy and Mineral Resources of Indonesia, said that the energy transition is very important for Indonesia. We are committed to reducing greenhouse gas emissions and are committed to achieving the goal of zero net emissions by 2060 or earlier. The report shows that by 2050, Indonesia's renewable energy will account for two-thirds of the country's total energy structure, compared with 14% at present.

It is estimated that the population of Indonesia will reach 335 million in the next 30 years, and by the middle of this century, the power demand in Indonesia is expected to increase at least five times over the current level, reaching more than 1700 TWh. In order to meet the growing demand for electricity, the report recommends expanding the installation scale of key renewable energies such as solar energy, bioenergy, geothermal and green hydrogen.

Francesco La Camera, Director General of the International Renewable Energy Agency, said that Indonesia's growing energy demand provides more opportunities for the country to tap its huge renewable energy potential and promote its pursuit of fair, sustainable and low-carbon economic growth. The report we released shows that Indonesia can embark on the path of achieving net zero emissions at a lower cost, provided that the Indonesian government follows the steps recommended in the report and obtains the required international support. Indonesia is rich in renewable energy, and has unique advantages in developing a sustainable energy system based on renewable energy. This system can support the socio-economic development of the country, cope with climate change, and achieve energy security and resilience.

The report discussed the electrification process of Indonesia's end-user sector, and pointed out that by 2050, the country's power sector will undergo a complete transformation, with the installed capacity of installing renewable energy exceeding 1000GW, which means that the share of renewable energy generation will reach 85% or more.

The report estimates that by 2030, Indonesia will have $332 billion in investment opportunities in energy transformation technology and $80 billion in investment opportunities in grid infrastructure development. In the long run, energy investment needs to be significantly increased. By 2050, the cumulative investment in the entire energy system from power generation to efficiency and auxiliary infrastructure will reach $242 billion.

Although these major investments are planned, the cost of the plan proposed in the report is lower than that of the alternative plan. By 2050, the cumulative energy cost will be saved by 400~600 billion dollars, and the additional cost saved by reducing air pollution will be up to 600 billion dollars. Strengthening regional cooperation with ASEAN member countries is also the key to achieving energy transformation, not only in Indonesia, but also in Southeast Asia. Broader national and regional grid interconnection within ASEAN has many advantages, which can be achieved through integrated energy supply planning and minimizing energy and non energy services to achieve a low-cost power system for all.Editor/Xing Wentao