INDONESIA

GEAPP is actively advancing Indonesia’s energy transition goals, focusing on supporting net-zero emissions by 2050. Taking significant strides towards success, the Alliance recently embarked on a concrete initiative. During the G20 meeting in November 2022, GEAPP signed a crucial partnership agreement called the Just Energy Transition Partnership (JETP) with the International Partnership Group (IPG). The IPG comprises influential governments such as the United States, Japan, Canada, the United Kingdom, and the European Union.

In addition to this milestone, GEAPP is diligently developing a comprehensive strategy to facilitate the energy transition in Indonesia. This strategy encompasses various aspects, including:

1. Strengthening Capacity for JETP Planning and Implementation:GEAPP aims to enhance both public and private capacity to effectively plan and implement the Just Energy Transition Partnership (JETP). By providing embedded capacity and expert support, GEAPP will assist in building and upskilling critical institutions involved in delivering the JETP.
2. Accelerate the early retirement of coal-fired power plants in a just manner: GEAPP is committed to accelerating the retirement of coal-fired power plants in a fair and equitable manner. To achieve this, the alliance will provide catalytic funding to demonstrate a scalable model for phasing out coal and will mobilize carbon and climate finance. This funding will help showcase viable alternatives and ensure a just transition for affected communities and workers.
3. Expediting Financing for Renewable Energy Projects: GEAPP aims to expedite the flow of funds into renewable energy projects. By providing catalytic funding and leveraging its unique access and neutral position with funders and the government, GEAPP will facilitate the financing of projects under the JETP. This support will help accelerate the transition to renewable energy sources, contributing to Indonesia’s energy transition goals.

This is done in order to achieve several key goals, which are:

• Contribute to Indonesia’s ambitions to decommission 4.8 GW of coal-fired power plants and accelerate deployment of 1 GW.
• Mobilize $3.8 bn capital from partners and the private sector towards scaled RE deployment and early coal retirement.
• Impact 70m tco2e expected lifetime of GHG emissions avoided, and 2,700 new jobs.

Strategic Pillars of GEAPP in Indonesia

GEAPP’s activities in Indonesia and coordinated around four pillar key points:

Pilar I : GEAPP Invests In Institutions

The government, state utility, private sector, industry, and civil society organizations play a pivotal and complementary role in accelerating energy transition in Indonesia. Together with the alliance partners, with GEAPP’s neutral position, GEAPP will provide embedded capacity and expert support to build the capacity of the most critical institutions in Indonesia to raise the government’s ambition and deliver energy transition programs in a just manner.

Pilar II: GEAPP Supports Bold & Innovative Solutions

Supporting the early retirement of coal-fired power plants is a necessary step for scaling renewable energy development. It will require bold and innovative solutions backed by coordinated philanthropic, and public and private capital. GEAPP will provide catalytic capital to pilot first-of-kind initiatives demonstrating a scalable model to massively avoid carbon emission e.g., accelerated coal transition carbon credits and energy transition mechanisms for early retirement of coal-fired power plants.

Pilar III: GEAPP Creates Jobs

Retirement of coal-fired power plants will impact workers and communities. GEAPP will support just energy transition initiatives that aim to create new jobs and livelihoods and upskill youth, women, and men that are impacted by the transition.

Pilar IV: GEAPP Supports Beyond Coal Decommissioning

Retiring coal-fired power plants alone will not put Indonesia on the energy transition pathway. GEAPP will support Indonesia in raising its renewable energy ambitions and provide targeted technical knowledge and financing to unlock scaled capital to bring more projects into the pipeline, compress project development timeline, and support new use-cases, e.g., BESS, floating solar, etc., and unlock scale capital.