Indonesia Renewables: 1.3 Million New Connections Per Year through 2025

It’s not all smooth going when it comes to the international renewable energy transition, but commitment is a must. Indonesia is one example of an important country in transition where we’re looking at all the positive and negative signals to find investment angles.

But local observers are worried that Indonesia’s progress toward its own presidential renewable energy goals is moving too slow.
Only 64% of Indonesian households have access to electricity, and with Asia-Pacific nations all around it ramping up RE development, Indonesia’s economy could end up between islands without an oar.

Indonesia has been Southeast Asia’s leading oil producer, but like many of its petroleum peers, production is in steady decline.

The U.S. Department of Energy’s international supply statistics show Indonesia with only 1 million barrels per day of output in 2008, compared to 1.6 million bpd in 1992.

Indonesia’s oil consumption, though, rocketed from about 700,000 bpd to 1.16 million bpd over the same sixteen years!

In the Jakarta Post on August 12, National Development and Planning Agency Director Monty Girianna proffered the government’s latest plan while copping to an amazing fact:

Though 91% of Indonesia’s 70,000 villages have access to either grid-connected or stand-alone electricity resources, only two-thirds of residences can tap local supplies.

That’s a gaping hole in the country’s end-user energy market — a gaping infrastructure hole at best, and a national security powder keg at worst.

Here are a few of the marks President Yudhoyono wants Indonesia to meet over the next few decades, according to Monty Girianna:
2.4 million kiloliters of biofuel from sources like jatropha and palm oil will be produced as soon as 2010, replacing 10% of diesel fuel consumption. That will grow to 20% by 2025.
Bioethanol production should equal 15% of gasoline consumption by 2025. And perhaps above all. . .
95% of households will have electricity by 2025, requiring 1.3 million new connections per year.

Green Chip Stocks