EBT Development Brings Large Transformation To Global Energy System

JAKARTA - The development of renewable energy brings a major transformation to the global energy system, as it will strengthen resilience through decentralization and optimization of domestic sources, said the Director General of the International Renewable Energy Agency (IRENA).

"Renewable energy will bring greater resilience through decentralization and greater dependence on domestic sources," said Director General of IRENA Fransesco La Camera at the launch of the Geopolitics of the Energy Transition: Energy Security or Geopolitics in Energy Transition: Energy Security at the 14th General Assembly of IRENA Abu Dhabi, United Arab Emirates (UAE), quoted from Antara, Friday, April 19.

According to La Camera, it is very important for various parties to form this energy security factor with policies and investments that have a far-forward view.

He considered that a holistic approach was needed for the development of renewable energy, starting from modernizing strategies to diplomacy.

The development of renewable energy also shows that energy security strategies must now include integration of solving environmental problems, economic trends and social impacts.

IRENA in the report emphasized that technology is the key or core of new energy, no longer fuel. Based on the World Energy Transition Outlook or Outlook of the World Energy Transition released by IRENA previously, renewable energy will cover three-quarters of the global energy mix by 2050.

Electricity will be the main energy by meeting more than 50 percent of consumption by 2050. The renewable energy-based system is characterized by high electrification and efficiency, equipped with green hydrogen and sustainable biomass.

From IRENA's estimate, 11 terawatts or 11,000 gigawatts of renewable energy will be installed in 2030, thus requiring a three-fold increase in renewable energy and energy efficiency by double that was also confirmed at the COP 28 Climate Summit in Dubai, November 2023.

This is said to keep the scenario of increasing the earth's temperature from crossing the 1.5 degree Celsius threshold as stated in the Paris Agreement.

As a result, major geopolitical shifts will greatly affect the dynamics of energy trading, change its international dependence, and reshape the geopolitical landscape. Cross-border electric trade will stand out, thus pushing for mutual benefit, in contrast to the asymmetric dependence on the oil and gas sector, according to the IRENA report.

IRENA's new report also shows that energy resilience in the renewable energy era needs to be developed in several key areas, among others, the emphasis on the strong supply chain of technology to support transitions both for developed and developing countries.

In addition, security and political considerations will be the key to the success of the implementation of the necessary infrastructure. Infrastructure of renewable energy systems must have high resistance to extreme weather, cyber threats and physical attacks. This is needed in infrastructure that implements high electrification and digitalization.

In the 14th IRENA general session, Indonesia, represented by the Secretary General of the Indonesian Ministry of Energy and Mineral Resources, Dadan Kusdiana, said Indonesia continues to develop renewable energy capacity. Indonesia sees the development of green hydrogen as an important part.

He revealed that Indonesia is also trying to optimize the development and use of critical minerals in clean energy areas.

Efforts to develop renewable energy, said Dadan, have become more competitive in terms of cost and effectiveness due to the momentum regarding the global energy transition.

As Enhanced-Nationally Determined Contribution (E-NDC), Indonesia targets a total reduction in carbon emissions from 29 percent or 835 million tons of CO2 to 32 percent or 912 million tons of CO2 by 2030. Indonesia also continues to accelerate its energy transition program with a target of reaching zero emissions by 2060 or earlier.