Abstract
Indonesia has committed to achieving net zero emissions by 2060, with emphasis on the electricity sector eliminating harmful gas emissions by that year. Using the Balmorel energy model, this study simulated the impact of the target on optimal capacity expansion, electricity production mix, emissions, and electricity supply costs across 230 grid systems. The results indicate the substantial benefits of integrating solar photovoltaics (PV) and Battery Energy Storage Systems (BESS). Solar energy sees a remarkable capacity increase, reaching 288.7 GWp by 2060. Other renewable sources, including hydro and wind energies, also exhibited significant growth, increasing from 6.2 GW and 130 MW in 2030 to 29.4 GW and 22.5 GW, respectively, by 2060. Intermittent renewables’ growth necessitates a rise in BESS capacity from 1 MW in 2022 to 73.4 GW by 2060. The study also underscores to replace phased-out coal-fired power plants with nuclear power by 2060. The study concludes with policy implications arising from these findings.
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Abbreviations
- ABB e7:
-
The ASEA Brown Boveri (ABB) Ability e7 platform modeling software
- ABM:
-
Agent-Based Modelling
- AIM:
-
Asia-Pacific Integrated Model
- BESS:
-
Battery Energy Storage System
- CCS:
-
Carbon Capture Storage
- CF:
-
Capacity Factor
- CFPP:
-
Coal-Fired Power Plants
- CGE:
-
Computable General Equilibrium
- CO2e:
-
Carbon dioxide equivalent
- EV:
-
Electric Vehicles
- ExSS:
-
Extended Snapshot Tool
- HSD:
-
High-Speed Diesel
- IAM:
-
Integrated Assessment Model
- IESR:
-
Institute for Essential Services Reform
- IPP:
-
Independent Power Producers
- JAMALI:
-
Java-Madura-Bali
- LCOE:
-
Levelized Cost of Electricity
- LCOS:
-
Levelized Cost of Storage
- LEAP:
-
Long-range Energy Alternatives Planning system/Low Emissions Analysis Platform
- LPG:
-
Liquefied Petroleum Gas
- MEF:
-
Ministry of Environment and Forestry
- MEMR:
-
Ministry of Energy and Mineral Resources
- NPP:
-
Nuclear Power Plants
- NZE:
-
Net Zero Emission
- OSS:
-
Online Single Submission
- PLN:
-
State-owned Electric Company
- PPA:
-
Power Purchase Agreement
- PPU:
-
Private Power Utility
- PtX:
-
Power to Hydrogen
- PV:
-
Photovoltaic
- REBED:
-
Renewable Energy-Based Economic Development
- REBID:
-
Renewable Energy-Based Industrial Development
- ROR:
-
Run-Off-River
- RUKN:
-
National Electricity General Plan
- RUPTL:
-
Electricity Supply Business Plan
- Simple-E:
-
Simple Econometric Simulation System
- TIMES:
-
Integrated MARKAL-EFOM1 System
- VRE:
-
Variable Renewable Energy
- WASP:
-
Wien Automatic System Planning
- WH:
-
Wellhead
- ZE:
-
Zero Emissions
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Acknowledgements
The authors thank the Economic Research Institute for ASEAN and East Asia (ERIA) for funding provided through Research Project 2022 (Ref. No: ERIA-RD/RA-1-1-2212/04/FY22). Pramudya also thanks the Danish Energy Agency for its contributions in improving the Balmorel model's robustness. The views expressed in this study are those of the authors and do not represent the official positions of ERIA, the Ministry of Energy and Mineral Resources, the TU Delft, the National Research and Innovation Agency, or the University of Wollongong.
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Pramudya, Indra al Irsyad, M., Phoumin, H., Nepal, R. (2024). The Role of Battery Energy Storage Systems and Market Integration in Indonesia’s Zero Emission Vision. In: Phoumin, H., Nepal, R., Kimura, F., Taghizadeh-Hesary, F. (eds) Large-Scale Development of Renewables in the ASEAN. Economics, Law, and Institutions in Asia Pacific. Springer, Singapore. https://doi.org/10.1007/978-981-99-8239-4_6
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