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Denmark and Indonesia cooperate on developing sustainable islands

By State of Green, December 18, 2018

The Danish-Indonesian island cooperation shows that it will benefit Lombok to integrate up to 60 per cent of renewable energy in the island’s energy system by 2030. Additionally, the island’s current regulation makes it attractive for investments within wind and solar energy as well as biomass and waste incineration.

The Danish-Indonesian island cooperation was initiated in 2016 and has now resulted in two studies regarding the transition to a sustainable energy system on the island of Lombok, located east of Bali in Indonesia.

In Indonesia, many islands, including Lombok, primarily generate their electricity from diesel and coal-fired power plants in fragmented electricity systems. However, studies now show the benefits of integrating up to 60 per cent of renewable energy in Lombok’s energy system by 2030.

‘’The two studies of Lombok shows that there is a large potential for renewable energy in Lombok and that it can be integrated in a cost-efficient manner. This is a valuable contribution to the regional energy planning in Lombok and it will make it clear to developers and investors that Lombok is a place for attractive investment opportunities’’, said Pak Saleh, the General Secretary of the National Energy Council in Indonesia.

Sun, wind, biomass and waste

The Danish Energy Agency and the Royal Danish Embassy in Jakarta have conducted the studies on Lombok’s renewable energy integration.

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One of the studies includes a number of pre-feasibility studies on renewable electricity production. These studies show that electricity production sourced from wind, sun, biomass and waste incineration are attractive investment opportunities for private investors.

The Danish Energy Agency has also carried out system analyses of cost-optimised scenarios with a focus on renewable energy integration.

The results of the two studies will be published in the Lombok Energy Outlook report in January 2019.

Scalable to other island systems

The Danish Energy Agency and the Danish Embassy in Jakarta will continue the cooperation with the local authorities in Lombok to support the low carbon transition of the island. In addition, the concept will be scaled up to other island systems and regions in Indonesia to support renewable energy and energy planning in other provinces.

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‘’The Danish-Indonesian cooperation on energy systems has been very successful so far. The results are very promising, and I think there is ample room to scale up the successful project in Lombok to other provinces and islands to further reduce emissions and local pollution as well as decreasing the electricity cost to the benefit of the Indonesian people’’, said the Ambassador of Denmark to Indonesia, Rasmus Abildgaard Kristensen

Facts about the cooperation

The SSC-programme between Denmark and Indonesia started in 2016 and has created government-to-government collaboration between the Indonesian Ministry of Energy and Mineral Resources (MEMR), the National Energy Council (NEC) in Indonesia and the Danish Energy Agency. The objective is to assist relevant policies, strategies and solutions to increase the electrification rate and to achieve the government’s long-term objectives of renewable energy and energy efficiency.

The two studies on Lombok have been prepared jointly by the National Energy Council, Regional Government (Dinas ESDM NTB), Lombok Regional Power Company (PLN NTB), Ea Energy Analyses, KPMG, the Royal Danish Embassy and the Danish Energy Agency.

Read more about the country cooperation between Denmark and Indonesia here.

Source: Energy Supply and the Danish Energy Agency

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