Solar and wind electricity generation technologies have become cost competitive, and account for a growing share of global investment in new electricity generation capacity. However, uptake in Indonesia remains slow. India has had much more recent success. This seminar will review key obstacles to uptake of solar and wind in Indonesia, and draw learnings from India’s success in procuring and developing low-price renewables projects using large-scale competitive reverse auctions and government-facilitated solar parks. The seminar will also review other reform options for Indonesia, including regulatory reforms, reductions in electricity subsidies, the introduction of a renewable portfolio obligation (RPO) scheme, and the establishment of an Indonesian Clean Energy Agency. If it is able to establish suitable regulatory and investment environments, Indonesia has the opportunity to vastly transform its electricity system over coming years.
Paul Burke is an Associate Professor at the Australian National University’s Crawford School of Public Policy. Paul’s research focuses on energy, the environment, transport, and the economies of the Asia-Pacific. He has published in journals including American Economic Journal: Macroeconomics, Economic Inquiry, Nature Geoscience, Nature Climate Change, and Global Environmental Change. In previous research he has examined the effects of Indonesia’s fuel subsidy reforms on traffic jams, and of Indonesia’s electricity subsidy reforms on electricity use efficiency. Paul’s presentation will introduce research being undertaken as part of a Grand Challenge research program titled Zero-Carbon Energy for the Asia-Pacific. The work has been carried out with a team of colleagues from the Australian National University, including Jinnie Widnyana, Zeba Anjum, Emma Aisbett, Budy Resosudarmo, and Kenneth Baldwin.