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Indonesia emphasises Online System Integration in energy digitalisation

In respect of energy efficiency, Indonesia is currently sharply focussed on integrating online systems in energy digitisation. The Ministry of Energy and Mineral Resources plans to start measuring energy efficiency performance in the service / commercial sector which contributes to 45% of GDP and contributes to the final energy consumption of 6%.

“The selection of efficient end-Use equipment and demand-side management has a huge influence on energy efficiency performance in Indonesia,” said the Head of the Center for Data and Information Technology at the Ministry of Energy and Mineral Resources Agus Cahyono Adi at the virtual meeting of the G20 Energy End-Use Data and Energy Efficiency Metrics.

The COVID-19 pandemic is recognised as having changed people’s daily behaviour, which among other things has encouraged an increase in sales of goods through e-commerce during February to April 2020.  However, Agus said, digitalisation has significantly increased efficiency and productivity and will become the new norm.

The implications of this new online digital paradigm and economic pressure not only affect energy consumption in the commercial sector but have changed the preferences of people and energy users more broadly in the choice of energy use equipment. The increasing online shopping in Indonesia will make it easier to collect data on the circulation of energy-efficient equipment, he confirmed.

Agus revealed that concrete steps are being taken to improve data management by developing an online energy reporting system, system-to-system integration, as well as great support in the fields of big data e-commerce, industry and energy to help analyse energy use and identify efficiency opportunities.

The energy in this sector is complemented by an energy end-use survey guided by the IEA which will make it easier to see indicators of energy use, especially energy conservation, as a support for the preparation of recommendations for energy efficiency measures and energy transition policies. This goal is in line with the focus of the G20 today, namely “Rethinking end-use data collection in the light of the global health crisis “which aims to have an impact on managing end-use data which is vital in making the right energy policy.”

Indonesia’s energy policy calls for 23% renewables in the national energy mix by 2025. An ambitious target, the Indonesian government is pushing ahead with reforms to jump-start the transition to renewable energy and green power is at the heart of their new paradigm.

In Indonesia, digital technologies are changing the face of the power industry but a coherent strategy is required to fully capitalise on the myriad benefits digitalisation offers. Digitalising PT Perusahaan Listrik Negara (PLN, State Electricity Company) will have significant benefits to the Indonesian power and electricity sector. The ministry and agency have been exploring solutions available to PLN that will facilitate their digital transformation.

Smart Grids are a critical tenet within the digitalisation pillar of PLN’s New Paradigm. PLN’s smart grid strategy and implementation of smart grids across Indonesia will facilitate the transition to renewable energy, while also helping to ensure a more reliable supply of power and help drive economic growth.

A recent policy brief presents and highlighted the most recent energy policy developments in The nation. It considered measures designed to mitigate the economic and social impacts of the COVID-19 pandemic crisis implemented up to May 2020. Current estimates predict that the COVID-19 crisis will significantly impact Indonesia’s economic performance and the energy sector in the country.

In the power industry, the government is reviewing plans to retire around 13 GW of fossil fuel power capacity and replace it with renewables to meet the target of 23% new and renewable energy in the national energy mix. The decreasing electricity demand due to the COVID-19 crisis has stressed PT PLN financials, which, as a consequence, is renegotiating independent power producer contracts. While the pandemic also puts the 35 GW plan at risk, new regulations affecting renewable energy sources have added some optimism to the sector.

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