Jakarta, 20 May 2024–350.org and CELIOS launched the study “Economic Impact and Financing Opportunities for Community-Based Renewable Energy”, which shows that community-based renewable energy has the potential to contribute Rp10,529 trillion to GDP over 25 years. Bhima Yudhistira, Executive Director of CELIOS, stated, “The positive impact of community-based renewable energy can also reduce poverty by more than 16 million people. There are employment opportunities for 96 million people across various sectors.”
Funding opportunities could come from the JETP (Just Energy Transition Partnership). Bhima added, “If 50% of the USD 20 billion JETP fund is allocated to developing community-scale renewable energy, it could generate 2.18 GW of capacity. Renewable energy plants could replace at least 3.3 Cirebon-1-equivalent coal-fired power plants.” He also emphasized, “The development of community-based renewable energy can help reduce regional inequality. Because it is more inclusive, community-based energy is highly suitable for Indonesia.”
Firdaus Cahyadi, Interim Indonesia Team Lead at 350.org, highlighted the dominance of large-scale narratives in energy transition policy: “This single narrative is very evident in the JETP CIPP (Comprehensive Investment and Policy Plan) document. The development of large-scale renewable energy has become a means of creating foreign debt traps.” He stressed, “The single narrative promoted by international business aid institutions must be challenged if we want to achieve a just energy transition under JETP.”
350.org and CELIOS launched the study “Economic Impact and Financing Opportunities for Community-Based Renewable Energy” , showing that community-based renewable energy could contribute IDR 10,529 trillion to Indonesia’s GDP over 25 years. Bhima Yudhistira, Executive Director of CELIOS stated, “The positive impact of community-based renewable energy can also reduce poverty by more than 16 million people, with employment opportunities for 96 million across various sectors.”
Funding opportunities could come from the Just Energy Transition Partnership (JETP). Bhima added, “If 50% of the USD 20 billion JETP fund is allocated to community-scale renewable energy, it could generate 2.18 GW capacity; enough to replace 3.3 Cirebon-1 equivalent coal-fired power plants.” He emphasized, “Community-based renewable energy can reduce regional inequality. Its inclusive nature makes it highly suitable for Indonesia.”
Firdaus Cahyadi, Interim Indonesia Team Lead at 350.org, highlighted the dominance of large-scale energy narratives in policy: “This single narrative is evident in the JETP CIPP document. Large-scale renewable energy has become a way to create debt traps.” He stressed, “The single narrative from international business aid institutions must be challenged if we want a just energy transition under JETP.”
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Opportunities_and_Challenges_for_Community_Based_Renewable_Energy_Financing Download