Indonesia outlines massive renewables push

Indonesia is planning massive subsidies for future renewable energy projects and will open its first nuclear power plant by 2045, according to draft legislation to help it reach its net-zero emissions goal.

The bill, which still needs approval from President Joko Widodo and parliament before becoming law, is part of a plan to make the country entirely reliant on renewable energy by 2060. 

Under the proposals, the government will give incentives, including tax and administrative, to support new projects. It will also subsidise renewable energy when the cost of producing it is unable to compete with fossil fuels. 

A renewable energy fund will collect money from the state budget, export taxes, carbon trading funds and other sources, then use the cash to build infrastructure, give incentives for developers or to support research.

Indonesia will also set up a nuclear power assembly that will monitor the development and operation of atomic plants. Only state-owned companies would be allowed to build, operate and shut such plants. The country plans to operate its first one in 2045.

The bill differentiates between “renewables” (wind, solar, geothermal, hydropower, biomass and a few other small technologies) and ,new energy,’ which includes nuclear, hydrogen and several coal-based technologies, while carving out room for both to aid in the transition.

Indonesia is building its first coal gasification plant that will start operating in 2024.

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