Bali, 8 November, 2022 -
The G20 Energy Ministers expect the energy transition acceleration to become a joint commitment included in one of the declaration points at the G20 Summit in Bali on November 15-16, 2022. It will serve as part of the key solution to address the current ongoing global energy crisis.
It was revealed by the Senior Advisor on Strategic Planning Division of the Ministry of Energy and Mineral Resources Yudo Dwinanda Priaadi, at an online press conference on #G20updates, Tuesday (8/11/2022).
"The G20 countries have agreed to accelerate energy transition including to ensure achievement of the sustainable global development targets by 2030, particularly on the access to reliable, sustainable, and affordable modern energy for all," Yudo said.
Yudo explained that the G20 Energy Ministers had agreed on the "Bali Compact", which is the result of the Energy Transitions Ministerial Meeting (ETMM) held in Bali, September 2022. Containing nine principles, the Bali Compact serves as a significant part in the energy transition acceleration.
Furthermore, he explained that during the Bali meeting, all Energy Ministers had agreed to conduct the energy transition process without leaving anyone behind. Despite the differences on their respective countries' situations and conditions, they all agreed to reach the global targets.
The countries underlined the importance of the development of innovative and affordable technology to support the energy transition, including the significance of collaboration in transfer of knowledge and technology innovation. They also concurred to stimulate more investments and to encourage fund transfer to developing countries regarding energy transition acceleration as well as the importance to strengthen collaboration.
Further, Yudo added that the "Bali Compact" had a principle of energy transition acceleration by taking into account benefit for all with no one left behind during the process. It is also important to respect the differences in all country's situations and conditions.
Those nine principles include strengthening trust and transparency in planning, execution, and evaluation at the national level; increasing energy resilience, market stability, and affordability; and securing energy supply, infrastructure, and resilient, sustainable, and reliable system.
The other principles are increasing energy efficiency implementation; diversifying energy systems and mix; and decreasing emission of all energy sources.
Next are catalyzing inclusive and sustainable investment from a large scale into a lower-emission energy system or Net Zero Emissions; collaborating in mobilizing all funding sources to reach the objectives of Sustainable Development Goals (SDG) 2030 Agenda and Paris Agreement.
The principles also comprise improving innovative, affordable, smart, low emission or Net Zero Emissions technology, and building and reinforcing innovative ecosystems to encourage related research, development, demonstration, dissemination, and implementation.
According to Yudo, there are challenges to deal with in manifesting the energy transition, including technology and funding. "Budget is also a challenge", he firmly stated.
He added that energy transition would require large funding, including those for accelerating the cease of operation of steam power plants (PLTU).
Technology mastery, project execution terms, and supporting industry preparedness in terms of technical or economical aspects add to the list of challenges to tackle.
Yudo added that to overcome these challenges, Indonesia attempts to make several breakthroughs, such as issuing Presidential Regulation Number 112 of 2022 concerning Acceleration of Renewable Energy Development for Electricity Supply.
The most vital breakthrough is the drafting of bill on new energy and renewable energy (EBET). The bill is aimed at providing a legal basis, strengthening institution and management, creating conducive investment environment, and renewable energy utilization for the development of the national economy industry. "The bill shall serve as a game changer to accelerate Indonesia's energy transition," concluded Yudo.
