Seneyan-powerplant-jakarta

Indonesia's energy transition

Moving towards net zero emissions

As Indonesia embarks on its ambitious journey toward net zero emissions by 2060, the energy landscape is evolving at an unprecedented pace. A flexible, responsive system is essential to manage the variability and uncertainty of renewable energy sources. Wärtsilä is proud to support Indonesia in this energy transition by offering sustainable solutions designed to balance renewables and future-proof energy systems.

Visit us at Electricity Connect 2024 Booth #S35
Electricity Connect 2024

20-22 November 2024 | Jakarta Convention Centre, Jakarta, Indonesia

The Electricity Connect unifies Indonesia National Electricity Day (INED), Nusantara Power Connect (NP Connect), and PLN Locomotion into one major event, showcasing ASEAN’s electricity innovations, expertise, and industry insights aligned with the region’s low-carbon energy goals. Wärtsilä is proud to be a Platinum sponsor and we look forward to welcoming you at our booth S35.

Under the theme “Go Beyond Power, Energizing The Future,” this event aims to foster collaboration across the ASEAN electricity sector, connecting policymakers, technology providers, and energy consumers. With both regional and international perspectives, Electricity Connect is a platform for actionable strategies toward a sustainable energy transition.

Register now

 

Where to catch us on stage at Electricity Connect 2024

Day 1, Wednesday, 20 November 2024


Plenary Session 1 | CEO Dialogue | 10.50 - 12.15

Accelerated renewable energy development toward net zero emissions in ASEAN
Kari-Punnonen

Kari Punonnen

Energy Business Director, Australasia
Wärtsilä Energy

Day 2, Thursday, 21 November 2024


Stream 1 | Power Talks | 10.30 - 11.30

Hybrid Power: Off-grid Hybrid Power Generation

Febron-Siregar

 

Febron Siregar

Sales Director, Indonesia
Wärtsilä Energy

Indonesia’s pathway to net zero emissions

The Indonesian government has set an ambitious plan to reach net zero emissions by 2060, while also aiming to provide universal electricity access by 2024. This is no easy feat, but it can be done.   

Actions taken now will determine the long-term path to net zero, and the key question for leaders is whether they will take the opportunity to proactively shape the new market dynamics of the energy transition or be shaped by it.  

Our report outlines the steps Indonesia needs to take to match its vision with execution, enabling the country to leapfrog to a future-proof power system.  

For more regional insights, visit Rethinking Energy in Southeast Asia.  

In our video series "Rethinking Energy in Southeast Asia," we delve into pivotal topics shaping the region's energy landscape. In this segment, we explore Indonesia's ambitions and strategies for executing its energy transition, with insights from Febron Siregar, Sales Director at Wärtsilä, and Fabby Tumiwa, Executive Director from Institute for Essential Services Reform (IESR).

 
Net zero for Indonesia

Ahead of COP26, Indonesia unveiled ambitious plans to independently reduce emissions by 29% by 2030 (or by 41% with international assistance) and ultimately achieve net zero emissions by 2060. Tumiwa outlines the steps necessary to achieve Indonesia's net zero goal:

  • “Increasing the renewable energy target and adding significant renewable energy capacity to the system is a good start.
  • Then, adding sufficient balancing and flexible capacity is crucial. Flexible generation is key to integrating new renewable energy into the system, necessitating energy storage and grid-balancing engines to manage the variability of renewables while still meeting demand.
  • Stopping new developments in coal projects and phasing out inflexible coal plants.
  • As we approach net zero, power generation assets should transition to sustainable fuels, such as green hydrogen, when they become economically and widely available.”

Siregar emphasises the need for Indonesia to establish a robust regulatory framework and an attractive investment environment. He notes, "This involves implementing energy market reforms to address non-financial barriers to renewable deployment and incentivise flexible generation sources in the power system."

In the video discussion, Siregar and Tumiwa explore strategies to further accelerate the energy transition.

 
Indonesia's JETP

Indonesia has recently received several new support mechanisms for its energy transition, notably the Just Energy Transition Partnership (JETP) which was announced in 2022.  “The JETP plan, which is co-led by the US and Japan on behalf of the International Partners Group, will mobilise $20 billion over the next 3-5 years to accelerate the energy transition in Indonesia”, explains IESR’s Executive Director Fabby Tumiwa.

Indonesia’s JETP plan outlines three primary targets:

  • Peaking power sector emissions by 2030.
  • Accelerating the deployment of renewable energy so that it comprises at least 34% of all power generation by 2030.
  • Freezing the existing pipeline of planned on-grid coal plants and closing coal plants before their intended lifespans.

While the JETP represents a significant milestone, it serves as an initial step, with its potential lying in efforts to enhance investment frameworks, attract increased financial support from international organizations, and mobilise private capital into Indonesia's energy transition.

Febron Siregar and Fabby Tumiwa delve deeper into these topics in the accompanying video.

 
The importance of flexibility in renewable power systems

Wärtsilä's "Rethinking Energy in Southeast Asia" report and the International Energy Agency's "An Energy Sector Roadmap to Net Zero Emissions in Indonesia" report underscore the critical role of flexibility in Indonesia's future power system, characterised by a high share of renewables.

Tumiwa elaborates on the growing importance of flexibility technologies, stating, "Decarbonisation is on everyone's mind, and as the share of variable renewable energy increases, the volatility of the system will increase as well. That's why balancing and flexible solutions are needed." 

He further explains the role of technologies like internal combustion engines, batteries, and pumped hydro in achieving this balance, with batteries handling second-level balancing and internal combustion engines managing minute-level, daily, and weekly balancing.

In the videos, Fabby Tumiwa and Febron Siregar provide a deeper insight into the flexibility characteristics necessary to ensure future-proof assets.

Matching Indonesia’s net zero vision with clear steps to execution

With the cost of energy production optimised, share of power generation from renewables can be 3-4 times greater than current goals.

Indonesia's net zero target by 2060 can be achieved with already existing technology by adding renewables and balancing solutions, while phasing out inflexible power plants.

building-powerplant

In the net zero scenario, Indonesia can achieve up to a 23% reduction in the LCOE and save $1.3 billion USD annually.

By pivoting to a flexible renewable system by 2060, Indonesia can do more than cut emissions. It can transform the energy sector, creating a deregulated, competitive market which is better able to serve thousands of islands, ensuring that everyone has access to clean, reliable electricity.

Febron-Siregar

Febron Siregar

Sales Director, Indonesia
Wärtsilä Energy

 

Flexible gas
Energy presentation main image
Flexible gas: An enabler of Indonesia's energy transition

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Wärtsilä’s flexible gas plants are critical in helping Indonesia maintain grid stability while integrating more renewable energy. Our gas engines provide the essential balancing power needed to accommodate the variable nature of solar and wind energy. Flexible gas solutions will play a key role as Indonesia phases out its reliance on coal and moves toward cleaner energy sources.

Discover what optimised, flexible systems look like

Every second that ticks by presents an opportunity for us to make the right decisions for a sustainable future. As we integrate more renewables into traditional baseload power systems, flexibility becomes essential. To ensure a continuous supply of electricity becomes a constant balancing act, where every second, minute, and hour counts.

What does flexible power generation look like in real life?

This visual case study, based on real-world data from South Australia's national electricity market, showcases the engine power plant's unmatched flexibility when comparing to an aeroderivative gas turbine power plant in full operation.

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Sustainable fuels
Decarbonising with sustainable fuels

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The urgent need to take action to decarbonise and reduce the global carbon footprint is seen globally. Countries, regions, significant industrial players and companies are setting renewable energy or decarbonisation targets.

To fully overcome renewable intermittency, energy systems must employ all available flexibility solutions, from energy storage which discharges over a period of hours – to thermal balancing using sustainable fuels, which can be transported and stored over many months.

The influx of renewables entering power systems is creating the right conditions for excess clean electricity to be used as a raw material for new types of hydrogen-based, carbon neutral sustainable fuels.

Learn more about sustainable fuels

Deploying sustainable fuels to power our energy systems is the final milestone on the journey towards decarbonisation. The launch of Wärtsilä’s hydrogen engine power plant represents a key step towards net zero and a 100% renewable energy future.

Wärtsilä's continuous research on future fuels and engine technology will ensure reliable power generation with a wide range of sustainable fuels. To meet decarbonisation goals and limit the impacts of climate change, explore the various options to reach 100% renewable power generation.

Success stories
Wartsila Lombok reference case
Wärtsilä 135MW Lombok Plant

A catalyst for net zero and renewable integration.

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Wärtsilä’s 135 MW flexible engine power plant in Lombok is an example of how hybrid power plants, which is a combination of renewable energy with flexible gas engines, can meet the demand and provide reliable and dispatchable power. The Lombok plant supports both baseload and peaking functions while balancing solar power’s intermittency. This future-proof solution enables even greater solar capacity on the island.

Key features:

  • Providing baseload and peaking
  • Supporting frequency control
  • Balancing solar power’s intermittency
  • Enabling even more solar PV capacity in the future
  • Future-proof solution for modern power system
135MW Lombok power plant

Other success stories of Wärtsilä’s technology in Indonesia

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