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Blog Posts: renewable energy

  • Taking Greenhouse Gases from the Sky: 7 Things to Know About Carbon Removal

    Most climate change solutions focus on mitigation—ways to slash emissions as quickly as possible, such as by adopting renewable energy. But research shows these aren't enough. To prevent the worst impacts of climate change, the world will need to reach net-negative emissions, a point at which we're actually removing more carbon from the air than we're putting in.

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  • Can electric vehicles be green heroes?

    The article is orginally posted on The Jakarta Post paper edition (October 5th, 2017) and online.

    “The future is here” is a shared sentiment of Indonesians, who are proud of the government’s plan to develop electric vehicles (EVs). Along with the United Kingdom, France, and India, Indonesia plans to prohibit the sales of fossil-fuel based vehicles by 2040.

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  • Lessons from Indonesia: Mobilizing Investment in Geothermal Energy

    Developing countries will need about $531 billion of additional investments in clean energy technologies every year in order to limit global temperature rise to 2°C above pre-industrial levels, thus preventing climate change’s worst impacts. To attract investments on the scale required, developing country governments, with support from developed countries, must undertake “readiness” activities that will encourage public and private sector investors to put their money into climate-friendly projects.

    WRI Global’s six-part blog series, Mobilizing Clean Energy Finance, highlights individual developing countries’ experiences in scaling up investments in clean energy and explores the role climate finance plays in addressing investment barriers. The cases draw on WRI’s recent report, Mobilizing Climate Investment.

    The development of Indonesia’s geothermal energy sector—and the starts and stops along the way—provides an interesting case study on how to create readiness for low-carbon energy. By addressing barriers such as pricing distortions and resource-exploration risks, the country has begun to create a favorable climate for geothermal investment.

    The History of Geothermal Power in Indonesia

    Indonesia holds the world’s largest source of geothermal power, with an estimated potential of 27 GW. However, less than 5 percent of this potential has been developed to date. Indonesia began to explore its geothermal resource in the 1970s, with support from a number of developed country governments. The country made some progress in advancing geothermal development by the 1990s. However, development stalled during the Asian financial crisis in 1997-98 and was slow to recover.

    In the early 2000s, a number of barriers limited investment in the sector, including a policy and regulatory framework that favored conventional, coal-fired energy over geothermal. Plus, the high cost and risk associated with geothermal exploration deterred potential investors and made it difficult to access financing from banks.

    The Indonesian government took a number of steps to try to advance geothermal development and received support from a wide range of international partners, including multilateral development banks and developed country governments. In 2003, it passed a law to promote private sector investment in geothermal, establishing a target of 6,000MW installed capacity by 2020.

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  • Between Populism and Price Increases: Who Will Pay for the Cost of Renewable Energy?

    As feed-in tariffs gain traction as a policy mechanism of choice, we must keep in mind the bigger picture of the financial health of developing country electricity sectors.

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