Pilot Project

Energy Efficient (LED)

The Indonesian Power sector heavily relies on fossil fuels. The common use of coal, oil and gas for power generation makes this sector as one of the main sources of GHG emission. Data in 2005 shows that the electricity demand contributes 26.6% of the total GHG emission in the energy sector, following industry and transportation (ICCSR, 2006). GHG emissions in the power sector occur by burning fossil fuels for electricity generation on the supply side. The electricity is consumed on the electricity demand side. Related GHG emissions caused by electricity consumption can be calculated by multiplying the electricity consumption (kWh) with the according GHG emission factor. 

Figure 1 clearly shows that the energy mix of Indonesia is dominated by oil, gas and coal sums up to almost 95% of total energy generation.  With the current electrification rate of 66%, Indonesia is intended to achieve 90% electrification rate by 2020 (RUPTL, 2011). It becomes a concern since the Ministry of Energy and Mineral Resources predicts that the future energy mix will be dominated by fossil fuels, particularly coal (Pusdatin ESDM, 2007). Thus, under business-as-usual scenario, the energy (power) sector  is contributing a large amount of GHG emission to the atmosphere.