Indonesia

Indonesia currently has a substantial captive power capacity of approximately ~25GW, with over half generated from coal. This reliance on captive coal presents a considerable obstacle to lowering the nation’s greenhouse gas (GHG) emissions. Therefore, identifying alternative energy sources for the captive power market is crucial for decarbonizing the industrial sector. This project undertakes a detailed analysis of the coal-based captive power sector to better understand its emissions profiles and potential routes for decarbonization. By concentrating on decarbonization strategies and renewable energy alternatives, the project actively promotes environmental sustainability by decreasing carbon emissions from industrial operations.

Furthermore, the proposal of Net Zero Industrial Parks (NZIPs) is deemed necessary to demonstrate a strong commitment to climate change mitigation and minimizing environmental impact within industrial sectors. This initiative directly tackles Indonesia’s dependence on coal-fired captive power and seeks to curtail carbon emissions through in-depth analysis and the proposal of decarbonization pathways.

Implementing Partners

KPMG

In partnership with

Ministry of Industry (MOI); JETP Secretariat

Strategic Outcome

De-risking Investments on Renewable Energy, Energy Efficiency and Fossil Fuel Phasedown

Project Documents

This project is currently underway. Related publications and reports will be made available in due course.