Press Release
Master Plan for Energy Transition Management Project in Indonesia
February 19, 2024
JERA Co., Inc.
TEPCO Power Grid, Inc.
Tokyo Electric Power Services Co., Ltd.
Mitsubishi Research institute, Inc.
JERA Co., Inc. ("JERA"), TEPCO Power Grid, Inc. ("TEPCO PG"), Tokyo Electric Power Services Co., Ltd. ("TEPSCO"), and Mitsubishi Research Institute, Inc. ("MRI"), having concluded an agreement with the Japan International Cooperation Agency ("JICA") regarding the Master Plan for Energy Transition Management Project in Indonesia, have today begun activities in Indonesia based on the agreement.
The Republic of Indonesia ("Indonesia") has achieved a GDP growth rate of approximately 5–6% since 2010. In addition to robust economic growth, the country's electrification rate has steadily increased and demand for electricity is expected to continue rising in the future. At the same time, the country remains highly dependent on coal-fired thermal power generation—which accounted for 50% of the country's power generation capacity in 2020—raising concerns that growth in demand for electricity will lead to increased greenhouse gas emissions.
Indonesia has set a goal of achieving carbon neutrality by 2060, making decarbonization of its electric power sector, which accounts for approximately 40% of the country's total CO2 emissions, an important issue. Given the existing energy mix, the government of Indonesia requested the government of Japan for assistance in developing an energy transition master plan. Having evaluated the knowledge and experience of the four companies, JICA proceeded with contracting them to assist in developing Indonesia's energy-transition master plan.
Work to be performed under the current agreement must take Indonesia's unique circumstances fully into consideration and include electricity demand forecasting and an examination of areas such as power source and power grid system planning and technologies for decarbonizing thermal power generation. The aim is to develop an appropriate energy transition master plan for the country to achieve a stable, affordable, and sustainable supply of electricity as it pledges carbon neutrality by 2060.
Under its JERA Zero CO2 Emissions 2050 objective, JERA is working to achieve net-zero CO2 emissions from its domestic and overseas businesses by 2050. It aims to achieve zero emissions by drawing up optimal roadmaps for each country or region.
In Indonesia, JERA believes it will be able to fully leverage its experience drawing up a decarbonization roadmap for Japan as well as the knowledge and experience gained by supporting decarbonization efforts in other Asian countries. Taking Indonesia's unique circumstances fully into account, JERA will contribute to achieving speedy, low-cost decarbonization while maintaining a stable energy supply.
With a wealth of knowledge and experience based on the planning, design, construction, maintenance, and operation of transmission and distribution facilities in Japan, TEPCO PG has a track record of owning and operating power grids while maintaining world-class quality and high supply reliability. It has also carried out numerous power sector projects in various countries, primarily in Asia and including Indonesia. For the current project, it will fully leverage the wealth of knowledge and expertise it has cultivated in the electricity business both in Japan and overseas to support and contribute to achieving a stable, inexpensive, and sustainable supply of electricity in Indonesia, thereby playing a part in the country's sustainable socioeconomic growth.
TEPSCO has participated in more than 1,000 overseas projects worldwide. In Indonesia, in addition to supporting the construction of power stations it has also worked proactively to contribute to economic development and environmental conservation by proposing the use of Japanese technology for the utilization of ammonia and carrying out related environmental impact assessments.
Based on the advanced technical capabilities and wealth of experience it has cultivated over many years as a member of the TEPCO Group, TEPSCO takes as its mission "Engineering for the Next: Pioneering tomorrow with our cutting-edge technology and comprehensive strength for a sustainable, safe, and secure society" and will continue working to achieve the world's shared SDGs through all its business activities.
MRI aims to resolve the various societal issues posed by the green transition (GX). With its experience and knowledge of energy supply-and-demand analysis cultivated both in Japan and abroad, MRI helps design policy programs to decarbonize societies around the world and works to create a business environment for Japanese companies conducive to growing their global businesses.
Since the Paris Agreement, Indonesia and other emerging and developing countries have made international commitments to achieve carbon neutrality, accelerating the move toward decarbonization. MRI will support such countries by helping Japanese companies that are explore global businesses in this field.
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