As part of the ongoing efforts to support Indonesia’s energy transition, the Just Energy Transition Partnership (JETP) Secretariat has initiated a Captive Power Study, which will become one of the thematic reports upon completion.

The JETP Captive Power Thematic Report complements the analysis in Chapter 5 of the CIPP 2023 and focuses on the role of captive power—electricity generated by industries for their own use, particularly in energy-intensive and downstream sectors such as mineral processing. This sector contributes around 13% of Indonesia’s GDP and accounts for 25% of total installed power capacity. However, most captive power generation still relies on coal, creating inefficiencies, higher emissions, and regulatory challenges, while increasing market and financing risks as global supply chains shift toward cleaner production.

Transitioning to renewable and low-carbon alternatives will enhance Indonesia’s industrial competitiveness and attract more sustainable investment. The JETP analysis applies an asset-level approach, tracking industrial plants, identifying clean energy opportunities, and modeling a JETP-aligned transition pathway. It also includes three company-level case studies to assess technical and financial opportunities for decarbonizing captive power operations.

✅Access the Report via this link

 

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