Japanese consortium to develop energy transition plan in Indonesia

Four Japanese entities, Jera, Tepco, Tokyo Electric Power Services (Tepsco), and Mitsubishi Research Institute (MRI), have entered into an agreement with the Japan International Cooperation Agency (Jica) for the Master Plan for Energy Transition Management Project in Indonesia, they announced on February 19.

The collaboration underscores a shared commitment to supporting Indonesia's goal of achieving carbon neutrality by 2060.

Indonesia, with an electric power sector responsible for approximately 40% of the country's total CO2 emissions, recognises the urgency of decarbonising its energy landscape. Despite the significant role of coal-fired thermal power generation, constituting 50% of the country's power generation capacity in 2020, the government of Indonesia is keen on transitioning to a more sustainable and environmentally friendly energy mix.

In response to Indonesia's request for assistance in developing an energy transition master plan, Jica evaluated the knowledge and experience of the four Japanese companies and subsequently contracted them to contribute to this pivotal project.

The scope of work under the agreement includes electricity demand forecasting and an examination of power source and power grid system planning. Additionally, the consortium will explore technologies for decarbonising thermal power generation. The ultimate objective is to collaboratively create a comprehensive energy transition master plan that aligns with Indonesia's commitment to achieving a stable, affordable, and sustainable electricity supply as part of its carbon neutrality pledge by 2060.