Renewables are now more cost-effective for Indonesians: report
Energy cost-saving is estimated to be worth US$400b-600b to 2050.
Investment opportunity in renewable energy technologies is estimated to amount to US$332b and US$80b in grid infrastructure by 2030, the International Renewable Energy Agency (IRENA) reported.
In the long run, this could reach up to US$2.42b in cumulative investment to 2050 for energy systems covering generation, efficiency, and enabling infrastructure.
“Indonesia’s rising energy demand gives the country the opportunity to untap its huge renewables potential and advance in its pursuit of a just, sustainable, low-carbon economic growth,” IRENA’s Director-General, Francesco La Camera, said.
“Our Outlook shows that Indonesia can set itself on a pathway to net-zero emissions at a lower cost than the alternative, provided the government implements steps as recommended in the Outlook, and gets the international support it needs.”
Electricity demand in the country is projected to grow by at least five-fold to more than 1,700 terawatt-hours by 2050.
Despite the significant investment needed to meet this demand, IRENA noted that the cost of developing renewable energy is still lower compared to fossil fuels.
The report found that energy cost-saving of between US$400b-US$600b cumulatively to 2050, with an additional as much as US$600b in external cost savings from lower air pollution.