Study and Support for Drawing Up a Power Sector Decarbonization Roadmap for the Republic of Indonesia
November 25, 2021
TEPCO Power Grid, Inc.
Tokyo Electric Power Company Holdings, Inc.
JERA Co., Inc.
Tokyo Electric Power Services Co., Ltd.
TOKYO – 25 November 2021 – TEPCO Power Grid Inc. ("TEPCO PG"), Tokyo Electric Power Company Holdings, Inc. ("TEPCO"), JERA Co., Inc. ("JERA"), and Tokyo Electric Power Services Co., Ltd. ("TEPSCO") today concluded an agreement with the Japan International Cooperation Agency ("JICA") regarding a "Data Collection Survey on Power Sector in Indonesia for Decarbonization."
The Republic of Indonesia ("Indonesia") has maintained a GDP growth rate of approximately 5–6% since 2010. In addition to robust economic growth, the country's electrification rate has steadily been increasing and demand for electric power is expected to rise in the future. Meanwhile, the country is highly dependent on coal-fired power generation and there are concerns about increased greenhouse gas emissions due to growing electricity demand.
In this context, in July 2021 the government of Indonesia submitted a long-term strategy to the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) that included efforts to achieve carbon neutrality before 2060. The current agreement was concluded as part of JICA's efforts to cooperate in the decarbonization of Indonesia's power sector and reflects its evaluation of the four companies' extensive related experience.
Under the agreement, the four companies will draw up a proposed roadmap that embodies the targeted power source structure and power supply system while taking into account the specific conditions in Indonesia fully. The four companies will also consider measures that JICA could implement in Indonesia in support of the proposed roadmap.
Under the Asia Energy Transition Initiative ("AETI") announced by the government of Japan in May 2021, "support for the development of energy transition roadmap" is positioned as one of the pillars. The four companies will work together with AETI in the implementation of their operations.
TEPCO PG will contribute to the creation of a sustainable, stable, and economical energy environment in Indonesia by leveraging its skill in building and operating stable power transmission and distribution networks and its experience in the overseas consulting business, both cultivated in Japan, to make effective proposals for achieving carbon neutrality and power supply stability in the country.
TEPCO will contribute to drawing up the proposed roadmap for decarbonization of Indonesia's power sector, focusing on institutional and financial aspects, by leveraging the TEPCO Group's expertise in the electric power business and experience supporting the establishment of power master plans through its overseas consulting business. Going forward, TEPCO will work to achieve a carbon neutral society globally under optimal management of the Group.
Under its "JERA Zero CO2 Emissions 2050" objective, JERA has been working to reduce CO2 emissions from its domestic and overseas businesses to zero by 2050. JERA aims to achieve zero CO2 emissions by establishing roadmaps that show optimal solutions for each country and region. The current initiative in Indonesia is JERA's first project to support drawing up an overseas decarbonization roadmap.
In Indonesia, which consists of many islands, JERA believes it will be able to fully leverage the experience it has gained in drawing up a decarbonization roadmap for Japan. Taking Indonesia's unique circumstances fully into account, JERA will contribute to achieving low-cost and speedy decarbonization while maintaining an energy supply.
TEPSCO has been providing a wide range of consulting services in more than 90 countries around the world, mainly in developing countries in Asia and Africa, utilizing the advanced technical capabilities and expertise that it has accumulated as a member of the TEPCO Group. TEPSCO has been working in Indonesia for a long time, and hopes to contribute to the success of the project and in turn, of efforts to achieve carbon neutrality in the country by leveraging such experience.