Why Does Fossil Gas Dependence Hinder Energy Transition?
Jakarta – aswinnews.com- The launch of the CELIOS x Greenpeace Report and a public discussion forum, inviting media colleagues, discussed the urgency of accelerating the transition and Fossil Gas power plants towards the use of renewable energy in Indonesia, Thursday (24/04) at the Ashley Wahid Hasyim Hotel, Central Jakarta.
The energy transition policy in Indonesia is still considered less ambitious. This is because a number of false solutions are included in the energy transition scheme such as the use of CCS/CCUS technology, bioenergy from the use of palm oil, and the entry of gas and nuclear. Therefore, Greenpeace and CELIOS launched a report highlighting the use of fossil gas as a transition energy that will actually hinder energy transition efforts in Indonesia.
In the report, Greenpeace and CELIOS presented several findings, including losses in economic output from fossil gas development, decreased labor absorption, health and environmental impacts, and the potential for increased emissions.
“In terms of health impacts, fossil gas power plants with a 22 GW scenario will burden health costs of up to IDR 89.8 – IDR 249.8 trillion in the next 15 years,” said Leonard Simanjuntak, Head of Greenpeace Indonesia. “In addition, the expansion of fossil gas power plants in the 22 GW scenario will result in a spike in CO2 emissions of up to 49.02 million tons per year, and Methane (CH4) emissions of up to 43,768 tons per year,” he added.
From an economic perspective, the figures are no less fantastic. “Fossil gas power plants will actually reduce economic output by IDR 941.4 trillion cumulatively until 2040, while combined cycle gas-fired power plants will reduce output by up to IDR 280.9 trillion,” explained Bhima Yudhistira, Executive Director of CELIOS. “In terms of labor absorption, gas turbine power plants are at risk of reducing labor absorption by up to 6.7 million people, this figure takes into account disruptions to people’s incomes in affected sectors such as the marine and fisheries sector. The health impacts caused by fossil gas power plants with a 22 GW scenario provide a burden of up to IDR 89.8 – IDR 249.8 trillion in the next 15 years,” he added.
Meanwhile, according to CELIOS calculations, if Indonesia focuses and switches to developing renewable energy, it will actually contribute positively to the economy by IDR 2,627 trillion in 2040. The number of labor absorption if community-scale renewable power plants are developed massively could reach 20 million people in 2040.
In President Prabowo’s speech at the G20 Summit in November 2024 in Brazil, he called for the importance of collective action to support sustainable development, especially in addressing the impacts of climate change. In his speech, he emphasized that Indonesia has a green energy transition agenda to achieve zero emissions by 2050 by using biodiesel and closing PLTUs, then switching to new renewable energy sources.
Unfortunately, the speech was nothing more than selling promises. The government’s commitment to the energy transition effort is at odds with the energy policy conveyed by the Government with plans to make fossil gas a “transition energy” and plans to build new Fossil Gas Power Plants in large numbers, as stated in the Accelerated Renewable Energy Development (ARED) which will be included in the next RUPTL. The government also prioritizes funding from Danantara for oil and gas development rather than renewable energy.
This report emphasizes that the solutions offered in the government’s energy policy should not be false solutions that will only prolong Indonesia’s dependence on fossil energy use. Some of the recommendations resulting from this report include the government must cancel plans to add new fossil gas power plants from the upcoming 2025-2034 RUPTL, create a Roadmap for Retiring Power Plants from fossil gas and other fossil fuels, and accelerate economic transformation by focusing on renewable energy, especially solar and wind energy.
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