Indonesia Cuts Wind Power Target in Blow to Green Ambitions

(Bloomberg) -- Indonesia plans to install less wind power than envisaged under an international energy transition plan, a blow to those hoping for a bigger role for renewables in Southeast Asia’s top emitter.

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The energy ministry is recommending adding 5 gigawatts of wind power by 2030, compared with 8 gigawatts proposed under Indonesia’s Just Energy Transition Partnership. By 2060, the ministry sees just 37 gigawatts of wind being installed, compared to 45 gigawatts by mid-century under the partnership plan.

Indonesia’s JETP agreement was announced in 2022, with the aim of mobilizing about $20 billion in grants and loans from wealthy nations and international banks to accelerate the country’s energy transition. But progress has been held back by a reluctance to move away from coal, partially due to laws preventing losses on state-owned assets.

Around 80% of the country’s electricity was generated from fossil fuels — with coal accounting for the bulk of that — in 2022, BloombergNEF data show. Solar and wind generated just 0.3% combined. If the country hits the 5 gigawatts target, that will take wind to around 2% of the total.

While wind power is expected to play a relatively small role in Indonesia’s future energy mix compared to solar, the reduction of targets reflects growing skepticism in Jakarta of the ability to hit goals under JETP. The plan that was jointly authored by Indonesia and its international partners aimed to peak the country’s emissions by 2030, but that now appears to be unachievable.

The government is in talks with state-owned electricity firm Perusahaan Listrik Negara to finalize its business plan, which will determine its planned energy additions over the next decade.

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