In 2023, Indonesia's electricity generation is overwhelmingly dependent on fossil fuels, with almost 81% coming from these sources. Coal is the dominant fossil fuel, accounting for nearly 62% of the electricity produced, followed by gas at over 17% and oil making up around 2%. Low-carbon or clean energy accounts for a smaller portion, approximately 19% of the total electricity. Among clean sources, hydropower makes up the largest share at about 7%, followed closely by biofuels at over 6% and geothermal energy contributing roughly 5%. The heavy reliance on fossil fuels, especially coal, has significant implications on climate change and air pollution, underscoring the need for a larger shift to lower-carbon alternatives.
Is Electricity Growing in Indonesia?
Electricity consumption in Indonesia is on the rise, as seen in the latest data showing an increase to 1250 kWh per person, up from the 2022 figure of 1199 kWh per person, marking a positive change of 51 kWh. However, the generation of low-carbon electricity is a bit concerning, as it has decreased slightly to 232 kWh per person from 235 kWh in 2022, a small decline of 3 kWh. This highlights a need for more focused efforts to not only increase overall electricity generation but to ensure that new capacity comes from clean energy sources. Sustained growth in electricity consumption, especially from low-carbon sources, is essential to power future demand and support Indonesia’s development goals effectively.
Suggestions
To increase its low-carbon electricity generation, Indonesia could look towards the successful strategies employed by other countries. Brazil, which shares some similarities with Indonesia in terms of size and resources, demonstrates the potential of wind energy, producing around 14% of its electricity this way. Meanwhile, Lebanon showcases significant solar production, generating 31% of its electricity from solar. Additionally, France excels with nuclear energy, production of about 68% of its electricity through this source. These examples illustrate the benefits of diverse low-carbon energy portfolios. Indonesia can emulate these strategies by investing in solar and possibly nuclear energy to reduce its dependency on fossil fuels while ensuring sustainable energy growth.
History
Historically, Indonesia's low-carbon electricity has seen fluctuating but positive growth, especially in hydropower, with notable increases in various years such as 1998 and the early 2010s. However, declines were also observed, such as in 1997 and 2011. The geothermal sector saw a boost in 2017, and biofuels usage has surged, particularly in the late 2010s, although growth appears to have plateaued in recent years. Concerted efforts to maintain momentum in clean energy investments, particularly in rapidly advancing and reliable options like solar and nuclear, could significantly elevate Indonesia's low-carbon electricity generation in the coming decades, fostering a greener and more resilient energy landscape.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.