Indonesia has committed to achieving net zero emissions by 2060, with emphasis on the electricity sector eliminating harmful gas emissions by that year. Using the Balmorel energy model, this study simulated the impact of the target on optimal capacity expansion, electricity production mix, emissions, and electricity supply costs across 230 grid systems. The results indicate the substantial benefits of integrating solar photovoltaics (PV) and Battery Energy Storage Systems (BESS). Solar energy sees a remarkable capacity increase, reaching 288.7 GWp by 2060. Other renewable sources, including hydro and wind energies, also exhibited significant growth, increasing from 6.2 GW and 130 MW in 2030 to 29.4 GW and 22.5 GW, respectively, by 2060. Intermittent renewables’ growth necessitates a rise in BESS capacity from 1 MW in 2022 to 73.4 GW by 2060. The study also underscores to replace phased-out coal-fired power plants with nuclear power by 2060. The study concludes with policy implications arising from these findings.

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Several developing countries have attempted to reduce liquefied petroleum gas (LPG) imports and subsidies by shifting from the use of LPG to electric stoves. In Indonesia, the LPG subsidy reached US$ 4.9 billion and LPG imports increased to 6.3 million tonnes in 2021. Our study aims to analyse the feasibility of an induction cooker program in Indonesia to reduce LPG subsidies. Firstly, we calculated the energy equivalent factor of the induction cooker compared to the LPG cooker. Subsequently, we surveyed 1006 respondents with different electricity connection capacities regarding their monthly LPG consumption and perceptions of induction cookers. We found monthly electricity consumption for the induction cooker to be around 62 kWh to 235 kWh, depending on the customer group. Cooking with the induction cooker has a lower energy cost compared to cooking with the unsubsidised 12 kg LPG cylinder. However, for customers previously using the subsidised 3 kg LPG cylinder, the induction cooker program only reduces energy costs for cooking for the 450 VA customers. The LPG subsidy saving can compensate for the capital costs of switching to induction cooking within three years. Several policy recommendations are discussed based on these findings.@en

Energy demand growth in Asian countries is predicted to be the highest in the world. One of the drivers of energy demand growth is urbanization. Along with growing urban areas, public infrastructure, such as streetlights, is also expanding. Unfortunately, energy conservation measures in public facilities are commonly constrained by the budget limitations of local governments, while the potential participation of energy service companies (ESCO) requires regulation reformation settling the contradicting regulations. This study proposes several policy recommendations to modify existing guidelines for selecting ESCOs for the energy efficiency of streetlights in Indonesia that has the highest urbanization rate. Regulation review and several potential improvements for selecting ESCOs are provided. In 2017, the Ministry of Domestic Affairs released a Circular Letter to solve barriers to ESCO businesses in public sectors; however, the Circular Letter could be improved in several ways by eliminating the clauses on the holder of intellectual property rights, revising the valuation of economic benefit bidding, and increasing the maximum contract period. Moreover, we propose the use of smart street lighting technologies to improve the value-added services of streetlights and the establishment of a super ESCO to accelerate ESCO business activity in all economic sectors.@en

This paper is one of the limited studies to investigate rebound effects in sectoral electricity consumption and the specific case of New Zealand. New Zealand, like other OECD economies, has aimed for energy efficiency improvements and reduced electricity consumption from 9.2 MWh per capita in 2010 to 8.6 MWh per capita in 2015. However, following a significant decline since 2010, electricity consumption in the main New Zealand sectors is increasing. Energy conservation could play an important role in meeting the growing demand for electricity but rebound effects can affect the effectiveness of conservation policies. We decompose the sectoral electricity prices to capture the asymmetric demand response to electricity price changes and estimate electricity demand elasticity during 1980 and 2015 to estimate the sectoral rebound effects. We find partial rebound effects of 54% and 23% in the industrial and commercial sectors respectively while we find no rebound effect at the aggregate level. The rebound effect is insignificant in the residential sector. These findings lead to policy recommendations for sector specific energy conservation measures and policies.@en

Indonesia has a target of achieving 23% of renewable energy share in the total energy mix in 2025. However, Indonesia does not have accurate and comprehensive data on renewable energy potentials, especially wind energy. This article aims to assess the theoretical potential of wind speed and to visualize the wind speed by province for the entire Indonesia. Our assessment relied on the Weather Research and Forecasting (WRF) model using Four-Dimensional Data Assimilation technique, also known as Nudging Newtonian relaxation. The robustness of our analysis is confirmed by using high-resolution data from the National Centers for Environmental Prediction-Final (NCEP - FNL) and Cross-Calibrated Multi-Platform (CCMP) Reanalysis satellite data. This study shows the WRF method is a feasible option to estimate wind speed data.@en

Renewable energy has been prioritised in decarbonising Indonesia's electricity system. Indonesia aims to attain an efficient energy system by applying renewable energy tariffs that are lower than the cost of fossil fuel-generated electricity. However, the effectiveness of this policy is questionable, as renewable energy investments under previous premium feed-in tariffs did not meet expectations. This study aims to estimate generation costs from renewable energy expansions under three scenarios, namely existing power plant planning, and 11% and 14% emission reductions in Indonesia's electricity sector. We develop an agent-based model (ABM) tool called PowerGen-ABM that employs multi-approaches: linear programming and input-output analysis. The optimisation result shows that the emission reduction targets would increase the average electricity generation costs in 2028 from 65.3 USD/ MWh in the existing plan of power plant expansions to 68.3 USD/ MWh. The increased costs are caused by insufficient dispatchable renewables in several regions such as North Maluku. Renewable energy production share in total electricity production and emission reduction achievement of the existing plan in 2025 will be 22.8% and 6.5% below the targets of 23% and 11%, respectively. In contrast, the emission reduction scenarios could achieve those targets due to higher renewables productions, especially with wind energy from 5,268 GWh in the existing plan into anywhere between 64,472 to 75,085 GWh. Several policy implications are discussed based on these findings.@en

Ecological concerns stemming from local energy usage generates more severe impacts on mountain economies, such as the Hindu Kush Himalaya (HKH) — a region consisting of eight nation boundaries. However, little is known about the regional energy consumption pattern and trends in the HKH due to data scarcity making it difficult to devise effective evidence-based energy policy and planning strategies. The purpose of this study is to bridge the existing data deficit gap in the HKH region. We first estimate the HKH-specific energy consumption patterns in 2013 and then forecast the sectoral energy consumption of the region for the period 2013–2030 by using the Long-range Energy Alternatives Planning (LEAP) system model. Our results show the dominance of residential sector (57%) and conventional biomass energy (50%) in the energy consumption landscape of the HKH. Industrial activities in HKH regions are still relatively underdeveloped compared to overall national averages. Energy consumption in the HKH region is around 5% of that in the HKH countries but is projected to increase from 5.89 million terajoule (TJ) in 2013 to 7.04 million TJ in 2030. The findings emphasise the importance of further investments and research in creating and periodically updating an HKH-specific energy database to overcome data-driven development challenges.@en

Failures of countries to set and achieve renewable energy targets are prevalent, producing uncertainty as to the possibility of renewable energy contributing to a reduction in global emissions. Lack of policy and incorrect modelling analyses are among the sources of these failures and understanding these two sources is crucial for improving confidence in renewables. We assess errors in projections pertaining to the capacity and production of renewable energy in the United States and those countries of the European Union that have strong commitments to green energy supply. Our results show that solar energy has the lowest level of uncertainty as it has the most achievable capacity projections. However, other renewables entail more attractive policies and further research is needed for the advancement of reliable technology and accurate weather predictions. Our findings also provide ranges for the projection uncertainties for six renewable energy technologies, drawing attentions to ways that the dominant errors in these renewable energy projections may be rectified.@en

Sustainable tourism management policies should aim at maximising economic benefits from tourist arrivals while minimising associated adverse impacts on the environment. This study assesses the short-run and long-run relationships between tourist arrivals, per capita economic output, emissions, energy consumption and capital formation, citing Nepal as a specific case study. We developed four hypotheses and tested them using time-series econometrics based on the autoregressive distributed lag model and Granger causality tests. The results provide strong evidence of an economy driven tourism sector where expansion in economic output leads to expansion in tourist arrivals. More tourist arrivals, in turn, generate positive impacts on gross capital formation. Energy consumption negatively affects tourist arrivals, calling for increased attention towards improving energy efficiency and energy diversity. We conclude that national policies to increase tourist arrivals should be integrated with national energy and environmental policies in order to facilitate the transition towards a sustainable tourism sector.@en

The current problem of most existing street lighting is that their illuminance level is fixed regardless changes on pedestrian flows and passing traffic. Adjusting the illuminance level to actual needs of lightings that varies overnight potentially reduces energy consumptions. Such adaptive systems require a smart street lighting (SSL) technology that is able to monitor and automatically control street lightings in real time. Several cities in Indonesia has used SSL since 2012 and, therefore, this study aims to explore potential SSL expansions in the country. This paper uses a systematic review approach to analyze basic features of SSL technology; SSL global market prospects; factors influencing municipalities' acceptance, and evaluations of SSL systems in Indonesia from 2012 to 2018. Based on the review, policy recommendations are then proposed for the sustainable expansions and operations of SSL systems in Indonesia. One of the recommendations is to enhance the cooperation of energy service companies (ESCOs) to solve financing and technical problems faced by municipalities.@en

This study develops a hybrid energy agent-based model that integrates the input–output analysis, environmental factors and socioeconomic characteristics of rural and urban households in Indonesia. We use the model to estimate the effects of four solar energy policy interventions on photovoltaic (PV) investments, government expenditure, economic outputs, CO2e emissions and the uses of steel, aluminium, concrete and energy. The results of our analysis call for the abolition of the PV donor gift policy, the improvement of production efficiency in the PV industry and the establishment of after-sales services and rural financing institutions. A 100 W peak (Wp) PV under this recommendation would be affordable for 80.6% of rural households that are projected to be without access to electricity in 2029. Net metering is the most effective policy for encouraging urban people to invest in PV in a situation where fossil energy prices are increasing and PV prices are declining. A donor gift policy may induce USD 51.9 new economic outputs for every Wp of PV operating to capacity in 2029, but would require a subsidy of USD 18.6/Wp. The recommended policies do not require subsidies and reduce CO2eq emissions and the consumption of aluminium, energy, steel and concrete by between 83.1% and 89.7% more than the existing policy. Several policy implications are discussed in response to these findings. As a contribution to energy modelling literature, the model can be used for other developing countries by merely changing its data.@en

This study estimates the influence of income, electricity price, oil price, urbanization, and Asian economic crisis to electricity demands in residential, industrial, and commercial sectors of Indonesia using autoregressive distributed lag (ARDL) method. Our estimations reveal that electricity demands in all sectors during the period of 1969–2015 are significantly affected by income and urbanization in which the demands in all sectors are elastic to urbanization but inelastic to income. On the other hand, electricity price only significantly affects residential electricity demand while oil price does not have significant influence on electricity demands in all sectors. The electricity demands in residential and commercial sectors are also significantly inelastic to the number of electricity customers while Asian economic crisis in 1998 only affects industrial electricity demand. These findings are like most previous studies for other country cases but not to previous Indonesian studies that had suffered from the cointegration issues.@en

Renewable energy planners in developing countries should be cautious in using analytical tools formulated in developed countries. Traditional energy consumption, economic and demography transitions, high-income inequality, and informal economy are some characteristics of developing countries that may contradict the assumptions of mainstream, widely used analytical tools. In this study, we synthesize the debate in previous review studies on energy models for developing countries and then extend the scope of the previous studies by highlighting emerging methods of system thinking, life cycle thinking, and decision support analysis. We then discuss how these tools have been used for renewable energy analysis in developing countries and found out that not all studies are aware of the emerging critical issues in developing countries. We offer here a guidance to select the most appropriate analytical tool, mainly when dealing with energy modeling and analysis for developing countries. We also suggest potential future improvements to the analytical tool for renewable energy modeling and analysis in the developing countries.@en

Street lighting systems have contributed to undesirable local government expenditure, electricity peak loads, and greenhouse gas emissions. However, inadequate information on the benefits from energy efficiency improvements has given street lighting systems a lower priority in national energy efficiency policy. This paper estimates the national benefits arising from energy efficiency improvements on street lighting systems based on a pilot project in Jakarta city and energy audits in other three cities. The energy efficiency actions considered in the audits are the installation of power meters on every panel in street lighting systems and the replacement of old, inefficient armatures with high-efficiency armatures that are integrated with the dimming schemes featured in smart street lighting technology. The results show that electricity consumption reduction potential from energy efficiency improvements can reach 2.1 Terra Watts hours annually. This is equivalent to energy costs of USD 177.4 million, a USD 46.8 million energy subsidy saving, and a 2.4 million ton CO2e emission reduction. These findings can provide policymakers with important inputs while undertaking a social cost-benefit analysis of energy efficiency improvements in street lighting systems. However, achieving the potential benefits requires an active participation from investors or the Energy Service Company (ESCO) since local governments generally have limited budgets to implement these actions.@en