1、Policy Opportunities to Advance Clean Energy Investment in IndonesiaP O L I C Y P A P E RN O V E M B E R 2 0 2 2In collaboration with Accenture and Kamar Dagang dan Industri Indonesia(KADIN)ContentsExecutive summary1 Overview of Indonesias energy sector 1.1 Indonesias electricity market structure1.2

2、 Renewable energy in Indonesia1.3 Current electricity supply-demand dynamics2 Policy opportunities to advance clean energy investment in Indonesia 2.1 Renewable energy tariff regime 2.2 Regulatory environment2.3 Power purchase agreement practices2.4 Legislative implementation mechanisms2.5 Incentive

3、 mechanisms2.6 Renewable energy certificates and tracking systemCall to actionContributorsEndnotes3456677910121315161718Cover:Oleh Slobodeniuk,Getty Images Inside:Getty Images 2022 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by

4、 any means,including photocopying and recording,or by any information storage and retrieval system.DisclaimerThis document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a result of

5、 a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.Policy Opportunities to Advance Clean Energy Investment in Indonesia2Execu

6、tive summaryIndonesia is the worlds largest archipelagic state and the largest economy in South-East Asia.While fossil fuels currently dominate its electricity generation mix(70%),the country is endowed with a phenomenal potential for renewables(at least 400 GW).Accelerating the deployment of renewa

7、ble energy capacity can be a significant measure for Indonesia to bolster its energy security,reduce reliance on fossil fuel imports and meet its net-zero targets.In doing so,Indonesia has the opportunity to become a renewable energy superpower.In 2022,the World Economic Forum(supported by Accenture

8、),Kamar Dagang dan Industri Indonesia(KADIN),and RE100(led by Climate Group in partnership with CDP)established a working group of Indonesian and international stakeholders from industry,finance and academia to explore solutions to unlock capital for clean energy investments in Indonesia.This report

9、 outlines a series of policy and regulatory aspects that,if addressed,would help unlock Indonesias clean energy future.For each of these aspects,possible regulatory and policy framework enhancements are suggested to create the kind of environment that would be conducive for Indonesia to attract the$

10、150-200 billion in annual investments it needs to meet its net-zero targets:Policy message#1:Renewable energy tariff regimeCreate a level playing field for renewable electricity to compete fairly with fossil fuel-based electricityPolicy message#2:Regulatory environmentRemove regulatory barriers and

11、implement stable frameworks to facilitate the uptake of corporate renewable electricity sourcingPolicy message#3:Power purchase agreement(PPA)practicesCreate an electricity market structure that allows for direct trade between corporate buyers of all sizes and renewable electricity suppliersPolicy m

12、essage#4:Legislative implementation mechanismsWork with utilities or electricity suppliers to accelerate the growth of renewable energy infrastructurePolicy message#5:Incentive mechanismsSubstantiate renewable energy incentives to improve the investment environmentPolicy message#6:Renewable energy c

13、ertificates(RECs)and tracking systemEnhance the transparency,sustainability and additionality of renewable energy certificates(RECs)The working group calls on Indonesian stakeholders and government entities to reflect on the arguments made in this paper and take steps to create an enabling environme

14、nt for renewable energy investments.Policy Opportunities to Advance Clean Energy Investment in IndonesiaNovember 2022Policy Opportunities to Advance Clean Energy Investment in Indonesia3Overview of Indonesias energy sector1Indonesia is the worlds largest archipelagic state and the largest economy in

15、 South-East Asia,with a population of 272.6 million(as of 2021)and a GDP of$1.15 trillion1(as of 2021).The countrys total primary energy consumption grew by about 16%between 2010 and 2020.2 Fossil fuels dominate the countrys electricity generation mix,making up more than 70%of generating capacity,wi

16、th coal contributing to upwards of 65%of total generation.Indonesias energy mix(as of 2021)3FIGURE 1Oil3%Coal65.6%Gas17.9%Renewables13.5%Indonesia is currently the worlds second-largest coal exporter after Australia,4 with coal exports totalling$26.5 billion in 2021.That same year,Indonesia spent$24

17、 billion on net oil imports,a number that is expected to rise to around$35 billion in 2022.By 2050,net oil and gas imports are expected to reach$100 billion.5Policy Opportunities to Advance Clean Energy Investment in Indonesia4The Indonesian electricity market is vertically integrated.Its leading pl

18、ayer,state-owned enterprise Perusahaan Listrik Negara(PLN),has an electricity transmission and distribution monopoly.Although there is a provision for independent power producers(IPPs)to generate electricity,they need to contract with PLN via power purchase agreements(PPAs).PLN then fulfils the tran

19、smission and distribution functions.Indonesias electricity market structure1.1Key entities in the Indonesian electricity marketFIGURE 2The PresidentSets the overall ambition for the power sectorNational Energy Council(DEN)Formulates National Energy Policy(KEN)and National Energy Generation Plan(RUEN

20、),and supervises implementationMinistry of State-Owned EnterprisesApproves PLN annual budget andreviews performance Ministry of Energy and Mineral ResourceApproves the Electricity Supply Business Plan(RUPTL)and functions as market regulator Ministry of FinanceRecommends PLN subsidy andapproves gover

21、nment guaranteesfor PLNs loans and PPA obligations PLNMinistry of IndustrySets the local content regulations for the power sector Investment Coordinating Board(BKPM)Issues business licenses to power sector entities Ministry of ForestryIssues clearances for land acquisitionsGenerationTransmissionDist

22、ributionIPPsPPAsPolicy Opportunities to Advance Clean Energy Investment in Indonesia5Renewable energy in Indonesia1.2Indonesias renewable resource potential and installed capacity6FIGURE 3Indonesia has a total renewable potential of more than 400 GW,which is still largely untapped,with a renewable i

23、nstalled capacity of about 10.8 GW(as of 2021).The country plans to install additional generation capacity of 40.6 GW by 2030,more than half of which(20.9 GW)is to come from renewable sources.By 2025,the national energy mix shall comprise 23%renewable energy(or 24 GW of installed capacity).The major

24、ity of the planned renewable capacity addition until 2030 will come from hydropower(9.3 GW),solar(4.7 GW)and geothermal(3.4 GW).To meet its net-zero by 2060 target,it is estimated that Indonesia would need an average of$150-200 billion annually until 2030.7 Presidential decree no.112/2022 issued in

25、September 2022 highlights the main measures to encourage renewable energy in Indonesia,including setting up a competent pricing regime for renewable energy sources,tax incentives for renewable energy projects and streamlining the negotiation process to reach the pricing agreement.6.401.902.1094.6056

26、.90155.00Hydro3,294.000.19SolarWindBioenergy0.1623.70GeothermalInstalled capacity(GW)Potential capacity(GW)Indonesias National General Electricity Plan (RUKN Rencana Umum Ketenagalistrikan Nasional),published by the Ministry of Energy and Mineral Resources(MEMR),sets out a 20-year projection for ele

27、ctricity supply and demand.The Government of Indonesia and PLN also publish the countrys Electricity Supply Business Plan(RUPTL Rencana Umum Penyediaan Tenaga Listrik)every year.It outlines Indonesias power capacity projections and network development plans for the next 10 years.Optimistic consumpti

28、on growth projections have led to the building of significant coal-fired power plant capacity,leading to a capacity over-supply in the electricity market.Additionally,long-term“take-or-pay”PPA agreements which ensure that plant operators receive guaranteed payments irrespective of plant use rates ha

29、ve led to high reserve margins and general underuse of coal power plants.Accelerating the deployment of renewable energy capacity can be a significant measure for Indonesia to bolster its energy security and reduce reliance on fossil fuel imports.On top of the growth of its domestic clean energy cap

30、acity,Indonesia has the opportunity to become a renewable energy superpower,exporting to neighbouring countries increasingly seeking green electricity sources,as exemplified by Singapore,which aims to import 4 GW of its electricity needs by 2035.8Current electricity supply-demand dynamics1.3Policy O

31、pportunities to Advance Clean Energy Investment in Indonesia6Policy opportunities to advance clean energy investment in Indonesia2In line with the RE100 Global Policy Message,9 the working group has identified six critical areas for consideration and the associated recommendations that could improve

32、 Indonesias current regulatory and policy environment.These recommendations would create an enabling environment for investments to flow at the scale needed for Indonesia to fulfil its clean energy ambition.Throughout this section,case studies are provided as illustrative examples of measures having

33、 helped increase clean energy investments in other country contexts.These case studies should be treated as examples of solutions as opposed to pure recommendations as their applicability to Indonesia would require further analysis.Renewable energy tariff regime2.1SituationIndonesia has implemented

34、tariff caps linking renewable energy tariffs to the average local and national electricity generation cost(BPP Biaya Pokok Penyediaan).Currently,the final tariffs(capped at 85%of the local BPP if higher than the national average10)are subject to extensive negotiations between PLN and the IPPs and re

35、quire significant time and effort from the latter.This BPP benchmark is based on fossil fuel-based generation costs,which are highly subsidised.In the absence of direct subsidies for renewables,the present tariff mechanism does not allow renewable energy projects to compete fairly with fossil fuel-b

36、ased infrastructure,which limits their financial viability.Policy message#1Create a level playing field for renewable electricity to compete fairly with fossil fuel-based electricitySimplify negotiation processesConduct open auctionsSimplify tariff mechanism process While Presidential decree no.112/

37、2022 proposes improvements to the renewable energy tariff regime,the strategies below could be considered to ensure competitive costs for renewable energy when it comes to its enactment:Simplify the negotiation process by establishing standardized processes for negotiation between PLN and the IPPs C

38、onduct open auctions favouring the lowest quoted generation cost to ensure more competitive renewable energy prices Simplify the tariff mechanism process by exploring the viability of introducing renewable energy subsidies.Policy Opportunities to Advance Clean Energy Investment in Indonesia7FEATURED

39、 CASE STUDYMalaysias large-scale solar(LSS)programmeThe large-scale solar programme is a competitive bidding programme to drive down the levelized cost of energy(LCOE)for the development of large-scale solar photovoltaic projects.It has allowed Malaysia to grow its solar capacity through solar aucti

40、ons substantially.Four rounds of auctions have been held since its creation,awarding a total of 2.45 GW of solar capacity.The connection of these solar plants to the grid is governed by the Guidelines on large scale solar photovoltaic plant for connection to electricity networks published by the Ene

41、rgy Commission(Malaysian regulator for the electricity sector).A take-and-pay mechanism has been adopted for PPAs under a build,own and operate(BOO)model.The PPA duration is 21 years,with fixed energy prices throughout its tenure.The successive auctions have driven the awarded prices per kWh downwar

42、ds(see figure 4),making the Malaysian solar PV market more competitive and leading to an increase in total installed solar capacity in the country.Source:Malaysias Sustainable Energy Development Authority(SEDA),Large Scale Solar,https:/www.seda.gov.my/reportal/large-scale-solar/#:text=Large%20Scale%

43、20Solar%20or%20known,implementing%20agency%20for%20this%20scheme.Malaysias Energy Commission (ST Suruhanjaya Tanaga),LSS Progress by Region,2022,https:/www.st.gov.my/en/web/industry/details/2/17.ST,Guidelines on Large Scale Solar Photovoltaic Plant for connection to Electricity Networks,2018,https:/

44、www.st.gov.my/contents/2019/LSS/Guideline%20on%20LSSPV%20for%20Connection%20to%20Electricity%20Networks_%20February%202019.PDF.Large-scale solar awarded capacity and auction priceFIGURE 400,020,040,060,080,102004006008001000LSS round 1LSS round 2LSS round 3LSS round 4Awarded capacity(MW)Price($/kWh)

45、MW$/kWhPolicy Opportunities to Advance Clean Energy Investment in Indonesia8Regulatory environment2.2SituationIn Indonesia,discrepancies in planning and policy considerations were observed in the different power sector planning documents published by national agencies(i.e.RUPTL(Electricity Supply Bu

46、siness Plan),RUEN(National Energy Generation Plan),RUKN(National Electricity General Plan).Those differences add complexity for investors and project developers who must consider multiple scenarios to build investment plans and project pipelines.Stringent local content requirements discourage invest

47、ments in renewable infrastructure projects in Indonesia.While local content requirements apply to all renewable energy technologies,they are the most stringent for solar photovoltaics(PV),for which they have been increased from 40%in 2012 to 60%in 2019,posing a threefold challenge for project develo

48、pers:The procurement of locally manufactured panels has been limited by total national manufacturing capacity,which was estimated by the Indonesian Solar Module Manufacturer Association(APAMSI)at 11 national manufacturers,with a total production capacity of 500 MWp/year11 Locally manufactured panels

49、 have difficulties competing with the cost of panels manufactured abroad The quality and efficiency of domestic panels have also been highlighted as areas of concern vis-vis panels that can be procured from the international market.Policy message#2Remove regulatory barriers and implement stable fram

50、eworks to facilitate the uptake of corporate renewable electricity sourcingIncrease coordination in energy policy-making and regulationAdopt a phased and gradual approach to defining local content requirementsThe following measures could help Indonesia remove existing regulatory barriers to corporat

51、e renewable electricity sourcing and reinforce the stability of its regulatory framework:Increase coordination in energy policy-making and regulation wherein multiple planning bodies issue coordinated plans.Proactive rulemaking,backed by effective and firm implementation,can enable the smooth and ef

52、ficient uptake of renewable energy investments in Indonesia.A phased and gradual approach to defining local content requirements could be adopted,taking into consideration Indonesias manufacturing capacity,supplier base,local regulations and workforce skillset.Initially,local content requirements co

53、uld be minimal and applicable to specific areas of the value chain where appropriate capability and know-how exist,to provide impetus to the development of renewable projects.Policy Opportunities to Advance Clean Energy Investment in Indonesia9FEATURED CASE STUDYIndias Jawaharlal Nehru National Sola

54、r Mission(JNNSM)India launched the National Solar Mission in 2010 to establish the country as a global leader in solar energy through effective policy implementation throughout the country.The mission proposed to adopt a three-phase approach,with critical targets for each phase:Phase 1(20102013)Targ

55、et of 1000 MW grid-connected PV(including rooftop)and 200 MW off-grid PV Phase 2(20142017)Cumulative target of 4000-10,000 MW grid-connected PV and 1000 MW off-grid PV Phase 3(20172022)Cumulative target of 100,000 MW grid-connected PV and 2000 MW off-grid PV A key objective of the mission was to ena

56、ble India to be a leading solar manufacturer and reach 4-5 GW annual manufacturing capacity by 2020.To achieve these objectives,the government adopted a phased local content requirement(LCR)approach wherein the local content rules only applied to crystalline silicon technologies in phase 1,while in

57、phase 2,developers had to source locally manufactured PV components to be eligible for the domestic content requirement(DCR)auction categories.In 2018,the Ministry of New and Renewable Energy(MNRE),the nodal body for renewable energy in India,issued orders to implement“Make in India”rules for the pu

58、blic procurement of clean power in India.It required a 100%local content requirement for solar modules in grid-connected plants and 70%for off-grid/decentralized solar projects for all projects tendered by the federal government,ministries and public sector undertakings.LCRs have played a significan

59、t role in the 135%growth in the manufacturing capacity of crystalline silicon modules in phase 1.After the“Make in India”announcement,domestic manufacturers expressed significant confidence in ramping up their manufacturing capacities.As of 2022,India had an installed PV cell manufacturing capacity

60、of 3 GW/year and a PV module capacity of 10 GW/year.Source:International Energy Agency(IEA),Jawaharlal Nehru National Solar Mission(Phase I,II and III),24 August 2021,https:/www.iea.org/policies/4916-jawaharlal-nehru-national-solar-mission-phase-i-ii-and-iii.MNRE,Solar Energy Overview,https:/mnre.go

61、v.in/solar/current-status/.Bazilian,M.et al.,Local-content rules for renewables projects dont always work,Energy Strategy Reviews,2020,https:/ purchase agreement practices2.3SituationIndonesian regulations do not allow IPPs to enter into direct power purchase agreements with customers.This limits th

62、e ability of consumers to procure power produced from renewable sources directly.This is especially true for commercial and industrial(C&I)consumers who are increasingly setting ambitious clean energy procurement targets.While PLNs existing renewable energy certificate(REC)programme is a positive st

63、ep to promote renewable energy in the short term,businesses operating in Indonesia would welcome the ability to procure renewable energy through a direct corporate PPA,which presents the advantage of adding additional clean energy capacity,thus contributing to the national renewable energy target.In

64、donesia also does not currently have a standard PPA regime.As such,agreements are assessed and negotiated on a case-by-case basis,increasing complexity,reducing transparency,and lowering investor confidence overall.Negotiation processes also involve a lot of back-and-forth communication between the

65、parties,leading to longer lead times and high costs for project developers.This was found to be especially true for consumers willing to install ground-mounted solar on their premises,which contrary to rooftop solar would not fall under Ministry of Energy and Mineral Resources regulation no.26/2022

66、but instead would be regarded as an IPP needing to go through a negotiation process with PLN to determine the tariff.Policy Opportunities to Advance Clean Energy Investment in Indonesia10Policy message#3Create an electricity market structure that allows for direct trade between corporate buyers of a

67、ll sizes and renewable electricity suppliersEnable businesses to contract directly with IPPsImplement power-wheeling mechanismThe following measures could be considered for Indonesia to create an electricity market structure that allows for direct trade between corporate buyers and electricity suppl

68、iers:Enabling businesses to contract directly with IPPs through standardized and streamlined processes can ensure faster scaling of renewable energy capacity.Implementing power-wheeling guidelines allowing IPPs to use PLNs infrastructure to supply power to businesses would increase investor appetite

69、 for renewables in Indonesia.FEATURED CASE STUDYCorporate renewable energy PPAs in IndiaIn 2019,India was the second-largest growth market in terms of corporate renewable PPAs(1.4 GW capacity addition in 2019).Its corporate PPA market has grown substantially in recent years,allowing it to host the b

70、iggest renewable capacity for direct procurement in Asia-Pacific,with a total of 5.2 GW to date.Under current regulations,large consumers(1 MW load)can procure electricity from third parties through direct PPAs or by setting up their own captive generation plants.The consumer can use the states tran

71、smission and distribution infrastructure to procure this power on a short-term(up to 1 month),medium-term(3 months 3 years)or long-term basis(12-25 years).The following policies and regulations have enabled India to scale up corporate renewable PPAs effectively and seize the enormous potential that

72、corporate demand for clean electricity represents for the countrys energy transition:1.Open access regulations These determine the procedures and charges for wheeling power from an offsite power plant(using the public grid)to the consumption premises of the corporate buyer.These regulations are mana

73、ged at a state level with an overarching national framework.2.Power banking Under this mechanism,when a generator is wheeling electricity from an offsite renewable power plant,it can“bank”the electricity for consumption later.Accounting methods ensure the virtual banking of the electricity.Banking p

74、rovides renewable developers with a mechanism to use excess generation later in time and encourages higher uptake of renewable PPAs among businesses.3.Renewable purchase obligation(RPO)The RPO mandates all electricity distribution licensees to purchase or produce a minimum specified percentage(defin

75、ed by individual states)of their requirements from renewable energy.This pushes distribution companies to make concerted efforts,such as implementing smooth processes for granting open access for third parties to fulfil the RPO obligations.Source:Mercom,India Leads Corporate Renewable Procurement ma

76、rket in Asia-Pacific,2021,https:/ open access-an alternative to scaling renewables in India?,2020,https:/www.ceew.in/cef/masterclass/analysis/streamlining-open-access-alternative-to-scaling-renewables-in-india.WBCSD,Corporate Renewable PPAs in India:Market and Policy Update,2021,https:/www.wbcsd.org

77、/contentwbc/download/11241/165820/1.Policy Opportunities to Advance Clean Energy Investment in Indonesia11Legislative implementation mechanisms2.4SituationIn some cases,a gap between policy enactment and their effective implementation has been observed and is thought to discourage renewable energy u

78、ptake.Ministry of Energy and Mineral Resources regulation no.1/2015 and regulation no.11/2021 which lay out the primary conditions for power wheeling have,for instance,not been implemented in practice due to the absence of clear technical guidelines and a lack of clarity on transmission fees.While e

79、xisting regulations allow for 100%renewable energy installation at consumer premises,in practice the maximum amount of renewable capacity that is indeed approved typically never surpasses 15%-20%.Policy message#4Work with utilities or electricity suppliers to accelerate the growth of renewable energ

80、y infrastructureImplement power-wheeling mechanism Ensure implementation of the regulation allowing on-site renewable energy installation for 100%of generation needsThe following measures would help Indonesia accelerate the growth of its renewable energy infrastructure:Implementing power wheeling gu

81、idelines allowing IPPs to use PLNs infrastructure to supply power to businesses is expected to boost renewable energy uptake in Indonesia.The effective implementation of the regulation allowing on-site renewable energy installation for 100%of generation needs would enable the scaling-up of clean ene

82、rgy in the country.Policy Opportunities to Advance Clean Energy Investment in Indonesia12FEATURED CASE STUDYGermanys approach to renewable regulationsGermany has shown a stable and consistent approach to promoting renewable energy.Its Renewable Energy Sources Act(Erneuerbare Energien Gesetz/EEG)was

83、enacted in 2000 and has since been consistently updated to align with the countrys growing renewable energy ambitions.The EEG is a comprehensive and integrated policy that covers all sectors of the economy and encourages extensive engagement with civil society to gather inputs for policy-making.Thro

84、ugh the EEG act,feed-in tariffs(FiTs)were introduced in Germany to encourage renewable energy project developers and improve project bankability.The EEG also provided feed-in priority grid access to renewable projects.As the renewable energy market started to mature,the EEG transitioned from FiTs to

85、 feed-in premiums(FiP)that tend to better align renewable energy prices with the actual market conditions.The EEG Act is considered a significant driver of renewable energy growth in Germany.Key features of the act include:Providing priority access to the power grid for renewable energy sources Esta

86、blishing attractive renewable energy tariffs to ensure appropriate returns to project developers Linking tariffs to market developments to ensure competitive prices.Source:Bundesverband WindEnergie(BWE),Renewable Energy Act(EEG),2020,https:/www.wind-energie.de/english/policy/rea/.European Commission

87、,Mission-oriented R&I policies,2018,https:/ec.europa.eu/info/sites/default/files/mission_oriented_r_and_i_policies_case_study_report_energiewende-de.pdf.Incentive mechanisms2.5SituationIndonesia currently subsidises fossil fuel-based power generation(IDR 83.7 trillion or$5.6 billion in 202112)and pr

88、ovides tariff subsidies to the different consumer categories.Apart from this,there is a domestic market obligation(DMO)that requires local coal producers to supply 25%of their annual production to PLN at a price cap of$70 per tonne for coal that has more than 6000 kilocalories per kilogramme(kcal/kg

89、),which is significantly below international market prices.Fossil fuel and electricity subsidies for Indonesian consumers amounted to$19 billion(1.6%of GDP)in 2021.In contrast,limited subsidies are available for renewable power sources,which places them at a disadvantage vis-vis fossil fuels.Policy

90、Opportunities to Advance Clean Energy Investment in Indonesia13Policy message#5Substantiate renewable energy incentives to improve the investment environmentEstablish fiscal mechanisms to spur renewable energy investments The following measures could be considered to improve Indonesias renewable ene

91、rgy investment environment:Establishing and implementing fiscal mechanisms such as tax credits or incentives would improve the economic viability of renewable energy generation for project developers to spur renewable energy investments.While Presidential decree no.112/2022 issued in September 2022

92、highlights incentives for renewable energy sources,more detailed guidelines and effective implementation mechanisms will be crucial to ensuring their viability.Develop detailed guidelines to substantiate Presidential decree no.112/2022FEATURED CASE STUDYRenewable energy incentives in the United Stat

93、esThe United States has put in place several tax credits and incentive mechanisms contributing to the expansion of renewables,both at the federal and state levels.These include:1.Renewable portfolio standards(RPS)Policies that require a certain percentage of electricity sales in the state to come fr

94、om renewable energy sources.Each state defines its targets and implementation mechanisms.The RPS scheme has significantly impacted the scaling of renewable energies in the United States,with about 50%of all growth in renewable electricity production being attributed to it since 2000.2.Renewable elec

95、tricity production tax credit(PTC)A per-kilowatt-hour(kWh)tax credit mechanism for electricity generated from renewable energy sources.A tax credit of 1.5 cents/kWh is provided for electricity from wind and 2.5 cents for geothermal and closed-loop biomass for the first 10 years of operation.3.Invest

96、ment tax credit(ITC)Owners of eligible technologies can claim a tax credit of up to 30%of total project costs.The incentive amount is 26%for solar,fuel cells and small wind projects,10%for geothermal and 30%for offshore wind projects.Source:U.S.Energy Information Administration(EIA),What are Renewab

97、le Portfolio Standards,2021,https:/www.eia.gov/energyexplained/renewable-sources/portfolio-standards.php.U.S.Environmental Protection Agency(EPA),Renewable Electricity Production Tax Credit Information,2022,https:/www.epa.gov/lmop/renewable-electricity-production-tax-credit-information.Database of S

98、tate Incentives for Renewables&Efficiency(DSIRE),Business Energy Investment Tax Credit(ITC),2022,https:/programs.dsireusa.org/system/program/detail/658/business-energy-investment-tax-credit-itc.Policy Opportunities to Advance Clean Energy Investment in Indonesia14Renewable energy certificates and tr

99、acking system2.6SituationAt present,businesses in Indonesia can buy renewable energy certificates(RECs)provided by PLN through a REC scheme launched in 2020.However,there is no clear traceability mechanism ensuring that the money raised from the sale of RECs is indeed used to finance new renewable e

100、nergy capacity in line with the additionality principle.Many global businesses operating in Indonesia that have established their international renewable energy targets according to the additionality principle are purchasing existing RECs as an interim solution.In the future,however,a clear traceabi

101、lity mechanism ensuring additional renewable capacity would help unlock further clean energy investments from such businesses.Policy message#6Enhance the transparency,sustainability and additionality of renewable energy certificates(RECs)Establish mechanisms to ensure tracking of funds from RECs The

102、 following measures could enhance the existing renewable energy certificate system:Establishing mechanisms to track funds from RECs would ensure the leveraging of technology solutions that can trace the uniqueness of RECs and the use of the funds disbursed by the corporate purchasers.Enacting regula

103、tions to ensure REC proceeds are invested in new renewable energy capacity would help build corporate confidence in the existing REC regime and unlock renewable energy investments in Indonesia.Enact regulations to ensure REC proceeds are invested in new renewable energy capacity FEATURED CASE STUDYR

104、enewable energy certificates standards in SingaporeIn Singapore,businesses are increasingly using RECs to offset their emissions.To facilitate the consistency of REC transactions and management,the Energy Market Authority(EMA),in collaboration with the Singapore Standards Council and Enterprise Sing

105、apore,have developed Singapore Standard 673:Code of Practice for Renewable Energy Certificates.The standard provides a clear framework for the transparent measurement,reporting and tracking of RECs.It details guidelines for the roles of crucial ecosystem stakeholders,the different procurement modes

106、for RECs,the verification of renewable energy installations,and public reporting requirements for the issuance and retirement of RECs.Source:Duane Morris,Rise of Renewable Energy Certificates(RECs)in Singapore,Lexology,13 May 2022,https:/ and Gledhill,EMA launches new Singapore Standard for Renewabl

107、e Energy Certificates,5 Nov.2021,https:/ Opportunities to Advance Clean Energy Investment in Indonesia15Call to action3Indonesia has a significant renewable energy potential that has been mostly untapped to date.The working group calls on Indonesian stakeholders and government entities to reflect on

108、 the arguments made in this paper and take steps to create an enabling environment for renewable energy in Indonesia.Policy Opportunities to Advance Clean Energy Investment in Indonesia16ContributorsJustine RocheEnergy Initiatives Lead,World Economic ForumMaria AgostiniSenior Manager,Accenture Strat

109、egy,World Economic Forum Fellow Ankit MahajanAnalyst,Accenture Strategy Madeline PickupRE100 Impact Manager,The Climate Group With thanks to active members of the Working Group on Mobilizing Investment for Clean Energy in Indonesia.For their comments and input,particular thanks go to Amazon,Clean Po

110、wer Indonesia,H&M Group,Heineken,Institute for Essential Services Reform(IESR),Kamar Dagang dan Industri Indonesia(KADIN),Meta,Nike and Sumber Energi Surya Nusantara(SESNA).Key abbreviationsBKPM Badan Koordinasi Penanaman Modal(Investment Coordinating Board)BPP Biaya Pokok Penyediaan(Electricity Gen

111、eration Cost)BOO Build-Own-Operate FiT Feed-in-tariff IO Izin Operasi(Operational License for generating electricity for own use)IPP Independent Power Producer KADIN Kamar Dagang dan Industri(Chamber of Commerce and Industry)KEN National Energy Policy MEMR Ministry of Energy and Mineral Resources PL

112、N Perusahaan Listrik NegaraPPA Power Purchase Agreement RUEN Rencana Umum Energi Nasional(National Energy Generation Plan)RUKN Rencana Umum Ketenagalistrikan Nasional(National Electricity General Plan)RUPTL Rencana Umum Penyediaan Tenaga Listrik(Electricity Supply Business Plan)Policy Opportunities

113、to Advance Clean Energy Investment in Indonesia17Endnotes1.Ministry of Energy and Mineral Resources,Handbook of Energy and Economic Statistics of Indonesia,2021,https:/www.esdm.go.id/assets/media/content/content-handbook-of-energy-and-economic-statistics-of-indonesia-2021.pdf2.U.S.Energy Information

114、 Administration(EIA),Country Analysis Executive Summary:Indonesia,2021,https:/www.eia.gov/international/analysis/country/IDN3.Institute for Essential Services Reform(IESR),Indonesia Energy Transition Outlook(IETO)2022,2022,https:/iesr.or.id/download/indonesia-energy-transition-outlook-ieto-2o224.Wor

115、lds Top Exports,Coal Exports by Country,2021,https:/ Energy Sector Roadmap to Net Zero Emissions in Indonesia,2022,https:/www.iea.org/reports/an-energy-sector-roadmap-to-net-zero-emissions-in-indonesia/executive-summary6.Directorate General of New,Renewable Energy and Energy Conservation,Ministry of

116、 Energy and Mineral Resources,Indonesias NRE Development in Energy Transition towards Net Zero Emission,November 2021,https:/britcham.or.id/wp-content/uploads/2021/11/Chrisnawan-Anditya-Director-of-Various-of-New-and-Renewable-Energy-of-Ministry-of-Energy-and-Mineral-Resources.pdf7.Reuters,Indonesia

117、 needs$200 bln annual investment in 2021-2030 to decarbonise-govt,13 October,2021,https:/ to Seek Proposals for Electricity Imports,25 October,2021,https:/www.ema.gov.sg/media_release.aspx?news_sid=20211024ouxMNg5jwnht9.RE100,RE100 Global Policy Message,https:/www.there100.org/sites/re100/files/2020

118、-10/RE100%20Global%20%20Policy%20Message.pdf10.Lexology,Indonesia:Government publishes PLNs 2020 Cost of Generation(BPP)figures,28 October,2021,https:/ foreign investors should prepare(and what to prepare)to be able to fulfill and pass the governments local content(TKDN)requirements?,https:/ achieve

119、ments ESDM sector year 2021&plans 2022,https:/www.esdm.go.id/assets/media/content/content-capaian-kinerja-sektor-esdm-tahun-2021-dan-rencana-tahun-2022.pdfPolicy Opportunities to Advance Clean Energy Investment in Indonesia18World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerlan

120、d Tel.:+41(0)22 869 1212Fax:+41(0)22 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.Policy Opportunities to Advance Clean Energy Investment in Indonesia19