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Mitigating Energy Poverty: Mobilizing Climate Finance to Manage the Energy Trilemma in Indonesia

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  • Abidah B. Setyowati

    (School of Regulations and Global Governance, Australian National University, Acton ACT 2612, Australia)

Abstract

Energy poverty remains a key global challenge. In Indonesia, around 25 million people are still without electricity access, and many of them live in geographically isolated areas and remote places that preclude them from access to the electricity grid. Deploying renewable energy sources in these areas could present an opportunity for a remarkable and rare complementarity between energy security, energy access, and climate change mitigation. This article examines how energy trilemma plays out in mobilizing private climate finance for renewable rural electrification in Indonesia. Analysis of relevant documents combined with interviews at local and national levels reveals that multiple barriers persist constraining the mobilization of private climate finance to support renewable rural electrification in Indonesia. In turn, this has led to difficulties with managing the tensions and reaching the complementarity of the three key energy objectives. The article concludes with some recommendations for moving forward.

Suggested Citation

  • Abidah B. Setyowati, 2020. "Mitigating Energy Poverty: Mobilizing Climate Finance to Manage the Energy Trilemma in Indonesia," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1603-:d:323238
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    References listed on IDEAS

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    Cited by:

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    2. Langer, Jannis & Quist, Jaco & Blok, Kornelis, 2022. "Upscaling scenarios for ocean thermal energy conversion with technological learning in Indonesia and their global relevance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    3. Lorafe Lozano & Evelyn B. Taboada, 2021. "The Power of Electricity: How Effective Is It in Promoting Sustainable Development in Rural Off-Grid Islands in the Philippines?," Energies, MDPI, vol. 14(9), pages 1-17, May.
    4. Ariel Macaspac Hernandez & Yudhi Timor Bimo Prakoso, 2021. "The Learning Activation Approach—Understanding Indonesia’s Energy Transition by Teaching It," Energies, MDPI, vol. 14(17), pages 1-19, August.
    5. Aghilasse Kashi & Mohamed Eskandar Shah, 2023. "Bibliometric Review on Sustainable Finance," Sustainability, MDPI, vol. 15(9), pages 1-30, April.
    6. Akiko Urakami, 2023. "Are the Barriers to Private Solar/Wind Investment in Vietnam Mainly Those That Limit Network Capacity Expansion?," Sustainability, MDPI, vol. 15(13), pages 1-26, July.
    7. Bhatnagar, S. & Sharma, D., 2022. "Evolution of green finance and its enablers: A bibliometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    8. Rahman, Arief & Dargusch, Paul & Wadley, David, 2021. "The political economy of oil supply in Indonesia and the implications for renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    9. Setyowati, Abidah B. & Quist, Jaco, 2022. "Contested transition? Exploring the politics and process of regional energy planning in Indonesia," Energy Policy, Elsevier, vol. 165(C).
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    11. Malek Al-Chalabi, 2023. "Targeted and Tangential Effects—A Novel Framework for Energy Research and Practitioners," Sustainability, MDPI, vol. 15(17), pages 1-12, August.
    12. Batara Surya & Andi Muhibuddin & Seri Suriani & Emil Salim Rasyidi & Baharuddin Baharuddin & Andi Tenri Fitriyah & Herminawaty Abubakar, 2021. "Economic Evaluation, Use of Renewable Energy, and Sustainable Urban Development Mamminasata Metropolitan, Indonesia," Sustainability, MDPI, vol. 13(3), pages 1-45, January.
    13. Langer, Jannis & Cahyaningwidi, Aida Astuti & Chalkiadakis, Charis & Quist, Jaco & Hoes, Olivier & Blok, Kornelis, 2021. "Plant siting and economic potential of ocean thermal energy conversion in Indonesia a novel GIS-based methodology," Energy, Elsevier, vol. 224(C).
    14. Hafidz Wibisono & Jon C. Lovett & Dhimas Bayu Anindito, 2023. "The contestation of ideas behind Indonesia's rural electrification policies: The influence of global and national institutional dynamics," Development Policy Review, Overseas Development Institute, vol. 41(1), January.
    15. Jannis Langer & Jaco Quist & Kornelis Blok, 2021. "Review of Renewable Energy Potentials in Indonesia and Their Contribution to a 100% Renewable Electricity System," Energies, MDPI, vol. 14(21), pages 1-21, October.

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