Indonesia’s energy landscape is on the brink of transformation, thanks to innovative research exploring the potential of inter-island power transmission. A recent study published in “Environmental Research: Energy” highlights how sub-sea power cables could play a pivotal role in decarbonizing the nation’s power sector, which is currently heavily reliant on fossil fuels.
Lead author Jannis Langer from the Department of Engineering Systems and Services at Delft University of Technology emphasizes the importance of these connections. “Island links could be crucial by providing access to the most cost-effective resources across the country,” he noted. The research reveals that by 2050, the implementation of 43 gigawatts (GW) of inter-island transmission lines could enable Indonesia to harness 410 gigawatts peak (GW_p) of onshore photovoltaics (PV) to meet half of its total energy generation needs. This transition could be coupled with 100 GW of energy storage, resulting in competitive system costs of approximately $60 per megawatt-hour (MWh).
The commercial implications of this research are significant. For energy companies and investors, the shift towards inter-island transmission presents opportunities to develop and deploy renewable energy projects, particularly in regions rich in resources like Kalimantan’s hydropower and Sumatera’s geothermal energy. These projects could not only meet local demand more efficiently but also reduce costs associated with energy generation. Without these interconnections, Java, the most populous island, would face a 15% increase in energy costs due to the need for larger offshore floating PV and storage capacity.
Moreover, the study indicates that even with enhanced interconnection, traditional energy sources like biomass, large hydro, and geothermal will continue to play a vital role, contributing at least 62 GW and 23% of total generation across all scenarios. This suggests that a diversified energy portfolio will remain crucial as Indonesia moves towards its decarbonization goals.
The research also highlights the urgency of the energy transition. Achieving full decarbonization by 2040 could mitigate an additional 464 million tons of CO2 emissions compared to a 2050 target. However, this accelerated timeline poses challenges in scaling up renewable resources and retiring fossil fuel capacities.
As Indonesia seeks to align its energy policies with global decarbonization efforts, the findings from Langer and his team underscore the importance of strategic investments in inter-island transmission infrastructure. This could not only enhance energy security but also position Indonesia as a leader in renewable energy in Southeast Asia. The study serves as a call to action for stakeholders across the energy sector to explore the commercial opportunities that lie within this transformative journey.
