Indonesia has abundance natural gas reserves, but less in consumption. According to a recent World Bank study, a greater use of natural gas can help the Indonesian government reach its target of reducing greenhouse gas emissions by 26 percent by 2020.
The study is part of Winds of Change: East Asia’s Sustainable Energy Future, a study funded by the Australian government through AusAID. It also suggests that a shift in emphasis from coal to renewable energy would help quicken the pace of Indonesia’s move to a more environmentally sustainable energy path.
Instead of natural gas, Indonesia is known as high-calorie coal exporters. Gov’t of Indonesia currently builds more coal powered power plants to optimize its domestic use of coal as well as increasing its capacity to address growing electricity demand. Largest geothermal resources also found in Indonesia.
The Bank’s report says that energy use in Indonesia is second largest source of emissions, and one of the fastest growing. On a business-as-usual path, Indonesia’s energy-related emissions will dominate by 2030. Stefan Koeberle argues that sustainable energy future is not only good for the global environment, but also has substantial local development benefits for Indonesia to improve local air quality, enhance energy security and create jobs.
Hmm…so far I note that the largest emission comes from deforestation and peatlands.
The Bank’s study recommends Indonesia to diversify Indonesia’s energy mix with renewable energy sources is in line with the Indonesian government’s ‘25/25 vision.GOI plans to have renewable energies fulfill 25 percent of the country’s energy needs by 2025.
Increased renewable energy usage will help Indonesia to achieve its targeted 26 per cent reduction on GHG emission. Indonesia plans to achieve the target through reduced deforestation, peatland management as well as energy efficiency.
Winds of Change: East Asia’s Sustainable Energy Future notes that energy conservation is a cost-effective short-term option to addressing the current power crisis in Indonesia, enhancing energy security, and mitigating climate change. Existing policies, the report says, would need to be beefed up with detailed guidelines and action plans – such as strict energy performance standards and financial incentive schemes – to ensure successful implementation.