In 2023, Indonesia's electricity consumption reflects a significant reliance on fossil fuels, with more than 80% of electricity coming from non-clean sources. Coal alone contributes to almost two-thirds of the electricity generation. In contrast, low-carbon or clean energy sources comprise close to a fifth of the electricity mix. Hydropower leads this category, providing around 7% of the electricity, followed by biofuels and geothermal, which deliver around 6% and 5%, respectively. Despite the critical need for energy diversification, traditional fossil energy sources, such as coal and gas, continue to dominate Indonesia's electricity landscape, making it imperative to focus on expanding cleaner energy options such as solar and nuclear.
Is Electricity Growing in Indonesia?
Electricity consumption per capita in Indonesia has indeed increased compared to the previous year, rising from 1199 kWh in 2022 to 1250 kWh in 2023. This growth of 51 kWh per person highlights a positive trend toward increased electricity usage, likely driven by economic activities and development within the country. However, the generation of low-carbon electricity per capita experienced a slight decline, from 235 kWh to 232 kWh, marking a decrease of 3 kWh per person. While overall electricity usage is on the rise, the marginal reduction in low-carbon electricity generation per capita suggests a worrisome stagnation in clean energy advancements, underlining the urgent need to expand this sector.
Suggestions
To increase low-carbon electricity generation, Indonesia can take valuable lessons from regions demonstrating significant advancements in solar and nuclear power. Countries such as France and Slovakia exemplify high nuclear electricity generation, respectively achieving 69% and 64% of their electricity from nuclear. Additionally, Indonesia can look toward solar-rich regions like Lebanon and Nevada, which generate 31% and 29% of their electricity from solar sources. Expanding nuclear and solar infrastructure could substantially uplift Indonesia’s clean energy profile, combat reliance on fossil fuels, and contribute to global efforts in mitigating climate change while enhancing energy security and sustainability.
History
Historically, Indonesia has experienced varying progress in developing its low-carbon electricity sector. During the late 1980s and into the '90s, there were modest increases in hydropower. However, the late 1990s through to the early 2000s faced setbacks with declines in hydroelectric generation. A notable increase occurred in the 2010s with geothermal and biofuel contributions, particularly with a significant growth from biofuels in 2018 and an increase in geothermal in 2017. 2022 saw further advancements with biofuels, contributing positively, but a decline was observed in 2023 with hydropower generation decreasing. These fluctuations denote the challenges and potential in bolstering Indonesia’s low-carbon efforts, emphasizing a critical need to enhance nuclear and solar developments to stabilize and grow its clean electricity generation sustainably.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.