Transitioning the energy sector to achieve the 2030 Agenda for Sustainable Development and the objectives of the Paris Agreement presents a complex and difficult task for policymakers. It needs to ensure a sustained economic growth, respond to increasing energy demand, reduce emissions and, more importantly, consider and capitalize on the interlinkages between Sustainable Development Goal 7 (SDG7) and other SDGs. In this connection, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has developed the National Expert SDG Tool for Energy Planning (NEXSTEP) to support member States in developing energy transition pathways.
In 2020, ESCAP, in collaboration with the National Energy Council (NEC), the Ministry of National Development Planning (BAPPENAS) and the SDG Secretariat, supported developed the Indonesia national SDG roadmap. This roadmap highlighted several key policy directions for Indonesia for transitioning the energy in line with the 2030 Agenda for Sustainable Development and the Paris Agreement. These include more focus on providing access to clean cooking fuels and technologies to bridge the remaining gap, revisiting plans for new investment in coal-fired power plants and stepping up efforts to further increase its energy efficiency.
While SDG7 and NDCs are national level targets, cities around the world are also adopting targets on sustainable energy to support the achievement of these targets at the national level. The City of Jakarta, following the completion of the Indonesia national SDG7 roadmap, showed interest in developing a sustainable energy transition roadmap to identify technological options and policy measures that will help the city navigate the transition of the energy sector in line with the 2030 Agenda for Sustainable Development as well as the city’s own goals and targets.
In 2020, ESCAP, in collaboration with the National Energy Council (NEC), the Ministry of National Development Planning (BAPPENAS) and the SDG Secretariat, supported developed the Indonesia national SDG roadmap. This roadmap highlighted several key policy directions for Indonesia for transitioning the energy in line with the 2030 Agenda for Sustainable Development and the Paris Agreement. These include more focus on providing access to clean cooking fuels and technologies to bridge the remaining gap, revisiting plans for new investment in coal-fired power plants and stepping up efforts to further increase its energy efficiency.
While SDG7 and NDCs are national level targets, cities around the world are also adopting targets on sustainable energy to support the achievement of these targets at the national level. The City of Jakarta, following the completion of the Indonesia national SDG7 roadmap, showed interest in developing a sustainable energy transition roadmap to identify technological options and policy measures that will help the city navigate the transition of the energy sector in line with the 2030 Agenda for Sustainable Development as well as the city’s own goals and targets.
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Section 1
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A. Highlights of the Roadmap
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Jakarta is a megacity of economic and political significance not only in Southeast Asia but across the entire Asia-Pacific region. It is the heart of Southeast Asia’s largest economy, home to the secretariat of the Association of Southeast Asian Nations (ASEAN) and an emerging business hub of Asia. The city faces several challenges in relation to energy use and environmental sustainability, including local air pollution, traffic congestion and greenhouse gas (GHG) emissions. The city is undertaking several measures to improve its sustainability such as developing the world’s largest Bus Rapid Transit system. The plan to move the capital to a new city in Borneo is expected to reduce the city congestion and local air pollution. Notwithstanding this, it is important that Jakarta plans for a sustainable energy transition to enhance the liveability of the city for its people and to align its energy system with regional and global goals and targets. The city has announced an emission reduction target to cap its 2030 emissions at 31.5 million tonnes of carbon dioxide equivalent (MtCO2-e). However, it needs to develop a holistic approach to achieve this target. The transport sector needs a special focus as it is the largest energy consuming and emission contributing sector. Furthermore, Jakarta also aims to align its energy system with the 2030 Agenda for Sustainable Development, namely the SDG 7 goal and targets. The COVID-19 pandemic has added even more urgency to embark on a sustainable energy transition plan, as such a plan will help the city to build back better from the pandemic, create economic opportunities and safeguard the energy sector. A sustainable energy transition plan would provide a blueprint for the city to achieve its emission reduction target, meet the SDG 7 goal as well as support broader sustainable development efforts to make it a better and more liveable city for its people.
This Sustainable Energy Transition Roadmap analyses Jakarta’s entire energy demand and supply system. It considers the targets that the city aims to achieve and develops several scenarios to inform policymakers the best pathway to navigate the transition. The four scenarios that are presented in this roadmap are:
This Sustainable Energy Transition Roadmap analyses Jakarta’s entire energy demand and supply system. It considers the targets that the city aims to achieve and develops several scenarios to inform policymakers the best pathway to navigate the transition. The four scenarios that are presented in this roadmap are:
- The current policy (CP) scenario, which has been developed based on existing policies and plans – it is used to compare other scenarios and to identify the gaps in existing policies.
- The sustainable energy transition (SET) scenario presents technological options and policy measures that will help the city to achieve its own goals and targets, enhance urban sustainability, as well as align with global goals and targets.
- The sustainable transport (ST) scenario shows how different sustainability measures can be implemented in the transport sector not only to reduce energy consumption and related emissions, but also to reduce traffic congestion.
- Finally, this study has developed a Towards NetZero scenario with an aim to present various strategies and policy directions that will help the city to move towards NetZero Carbon city.
Section 2
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B. Aligning Jakarta’s energy transition pathway with the SDG 7 targets
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The following is a summary of key results and findings with respect to the targets of SDG 7 – energy access, renewable energy and energy efficiency; as well as GHG emissions.
Energy access
Jakarta has already achieved universal access to electricity as reported by the Directorate General for Electricity (Direktorat Jenderal Kelistrikan) in 2013. The city has reported that access to clean cooking fuels and technologies had reached 98.48 per cent in 2020, close to universal access, but there remain about 42 thousand households which do not have access to clean cooking fuels and technologies. At a current annual improvement of 2 per cent, the city is on-track to achieve 100 per cent universal access to clean cooking technology and fuels by 2022, which is also in line with Indonesia’s national improvement rate.
Renewable energy
The share of renewable energy in Total Final Energy Consumption (TFEC) was 4.8 per cent in 2018. This includes a renewable energy share of 9.6 per cent in imported electricity from the Java-Bali network. Based on current policies, the share of renewable energy in TFEC will increase to 8.4 per cent by 2030, mainly due to the implementation of the biofuel roadmap and increase of solar energy in Jakarta’s power generation from 2 MW in 2018 to 32.5 MW by 2030. In the sustainable energy transition scenario, the share of renewable energy in TFEC will be 13.3 per cent by 2030. For a more ambitious target that aims to increase sustainability in the transport sector, the share of renewables in TFEC would increase to 18.3 per cent by 2030. The roadmap suggests that the city should increase the share of renewable energy in the electricity supply chain by for example, undertaking renewable energy auctions to meet its own electricity needs for key municipal services.. Recent experiences in the region suggest that the cost of electricity from utility-scale solar could be as low as US$ 0.038 when sourced through the renewable energy auction mechanism.
Energy Efficiency
Energy efficiency, measured in terms of primary energy intensity, is calculated as 2.05 MJ/US$ for Jakarta in 2018. There are ample opportunities for Jakarta to further improve its energy efficiency. These include, for example, rapid deployment of electric vehicles and improving energy efficiency in the building sector. With such measures implemented in the sustainable energy transition and sustainable transport scenarios, the energy intensity will reduce to 1.71 MJ/US$ and 1.66 MJ/US$ respectively by 2030.
Greenhouse Gas Emissions
The city of Jakarta has set an emission reduction target through the Governor’s regulation No. 131/2012, which states that the city will reduce its emissions by 30 per cent by 2030 compared to business-as-usual (BAU) emissions. The 2030 emissions in the BAU scenario would be 56.5 MtCO2-e, which will decrease slightly to 51.8 MtCO2-e in the current policy scenario, falling short of the Governor’s target of 39.5 MtCO2-e (70 per cent of the 2030 BAU value). The SET scenario ensures that the emissions target of 39.5 MtCO2-e is fully achieved (Figure ES 1) through increased energy efficiency measures and high uptake of renewable energy in the power sector.
Figure ES 1: Emissions by scenario and comparing with the city target
Energy access
Jakarta has already achieved universal access to electricity as reported by the Directorate General for Electricity (Direktorat Jenderal Kelistrikan) in 2013. The city has reported that access to clean cooking fuels and technologies had reached 98.48 per cent in 2020, close to universal access, but there remain about 42 thousand households which do not have access to clean cooking fuels and technologies. At a current annual improvement of 2 per cent, the city is on-track to achieve 100 per cent universal access to clean cooking technology and fuels by 2022, which is also in line with Indonesia’s national improvement rate.
Renewable energy
The share of renewable energy in Total Final Energy Consumption (TFEC) was 4.8 per cent in 2018. This includes a renewable energy share of 9.6 per cent in imported electricity from the Java-Bali network. Based on current policies, the share of renewable energy in TFEC will increase to 8.4 per cent by 2030, mainly due to the implementation of the biofuel roadmap and increase of solar energy in Jakarta’s power generation from 2 MW in 2018 to 32.5 MW by 2030. In the sustainable energy transition scenario, the share of renewable energy in TFEC will be 13.3 per cent by 2030. For a more ambitious target that aims to increase sustainability in the transport sector, the share of renewables in TFEC would increase to 18.3 per cent by 2030. The roadmap suggests that the city should increase the share of renewable energy in the electricity supply chain by for example, undertaking renewable energy auctions to meet its own electricity needs for key municipal services.. Recent experiences in the region suggest that the cost of electricity from utility-scale solar could be as low as US$ 0.038 when sourced through the renewable energy auction mechanism.
Energy Efficiency
Energy efficiency, measured in terms of primary energy intensity, is calculated as 2.05 MJ/US$ for Jakarta in 2018. There are ample opportunities for Jakarta to further improve its energy efficiency. These include, for example, rapid deployment of electric vehicles and improving energy efficiency in the building sector. With such measures implemented in the sustainable energy transition and sustainable transport scenarios, the energy intensity will reduce to 1.71 MJ/US$ and 1.66 MJ/US$ respectively by 2030.
Greenhouse Gas Emissions
The city of Jakarta has set an emission reduction target through the Governor’s regulation No. 131/2012, which states that the city will reduce its emissions by 30 per cent by 2030 compared to business-as-usual (BAU) emissions. The 2030 emissions in the BAU scenario would be 56.5 MtCO2-e, which will decrease slightly to 51.8 MtCO2-e in the current policy scenario, falling short of the Governor’s target of 39.5 MtCO2-e (70 per cent of the 2030 BAU value). The SET scenario ensures that the emissions target of 39.5 MtCO2-e is fully achieved (Figure ES 1) through increased energy efficiency measures and high uptake of renewable energy in the power sector.
Figure ES 1: Emissions by scenario and comparing with the city target
Section 3
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C. Important policy directions
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The key policy recommendations to help Jakarta accelerate the sustainable energy transition and achieve emission reduction target are summarised below:
- Increase the share of renewable energy in the electricity supply chain. Currently, half of Jakarta’s electricity supply is imported from the national grid which has 9.6 per cent share of renewable energy. The other half is generated within the city with 0.3 per cent share of renewables. There are several ways that can help the city increase the share of renewables, such as by renewable energy auction mechanism and the promotion of rooftop solar. Auctions can establish renewable energy supply contracts for large electricity users at competitive prices. The city has a potential to save a substantial amount of financial resources over the next 10 years by switching to renewable energy auction with a minimum of 51.6 per cent share of RE, which will also ensure the achievement of the emission reduction target.
- Energy efficiency improvement in the building sector has the potential to achieve substantial energy saving from both residential and commercial sectors with low- or no-cost. The currently implemented Green Building Codes (GBC) is an important starting point, however, the coverage and requirement of energy efficiency measures would need to further increase to mandate, for example, more energy efficient appliances and requirement in the residential and commercial sectors. The NEXSTEP analysis identifies that the city has potential to further revise and expand the energy efficiency requirements under this code and benefit from implement low hanging fruits. While the GBC focuses on building envelope to reduce energy consumption, this analysis suggests retrofitting with more efficient appliances in residential buildings to take advantage of the enhanced energy saving potential.
- Sustainable mobility options can save both energy and emissions in the transport sector. The transport sector is responsible for about 40 per cent of city’s energy consumption - consumes about 4 Mtoe of energy, 52 per cent of the city’s total energy consumption and is fully imported. The NEXSTEP analysis indicates that a combination of all measures - electrification of public buses, increasing the use of public transport and non-motorized mobility - would yield a total energy saving in 2030 of 1,553 ktoe, equivalent to a 5.9 MtCO2-e reduction in emissions.
- Transition to a Towards NetZero Carbon city. Reaching the goal of carbon neutrality is challenging for a mega city like Jakarta. However, a number of strategies have been proposed that would help the city to move towards NetZero by 2030. Major strategic directions include switching from LPG cookstoves to high-efficient induction type electric cookstoves in households, replacing half of the current two-stroke motorbike stock with electric versions, promoting the uptake of rooftop solar PV on buildings and increasing investment in bicycle infrastructure. Increased bicycle commuting should be given a high priority in the Towards NetZero Carbon scenario - an increase in 10 per cent cycling passenger-km has the potential to reduce city’s energy consumption by 215 ktoe annually.