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Dr. Dinita Setyawati is Ember’s senior electricity policy analyst for Southeast Asia.

Indonesia’s President Prabowo Subianto has announced a goal to end coal by 2040 – a bold move for a country that produces 62% of its electricity from coal. As the president’s first 100 days in office unfold, there is an urgent need to develop a feasible plan to achieve this ambitious aim.  

So far this is lacking. Indonesia’s recently published National Electricity Master Plan (RUKN) 2024-2060 includes phase-out strategies that propose co-firing with biomass fuel and retrofitting existing coal infrastructure with carbon capture and storage technology. These strategies seem to contradict the country’s decarbonisation targets and divert from the renewable energy acceleration needed to meet demand growth by 2040.  

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Changing historical reliance on fossil power requires systemic change in the power sector. Building on President Prabowo’s announcement, the next step could be developing a blueprint to retire coal power plants with very large emission footprints, including captive coal plants (power stations that are operated off-grid), to ensure a comprehensive transition to clean energy. Without addressing captive coal, a significant portion of Indonesia’s coal emissions would remain unregulated, undermining the country’s climate goals. 

At the same time, redesigning the contractual obligations between PLN (Indonesia’s state electricity company) and power producers is necessary to enable a faster reduction in coal power operations. Current contracts often lock PLN into purchasing fixed amounts of coal-generated electricity, limiting the integration of renewables. 

More flexibility needed 

A key challenge in reducing reliance on coal is improving the flexibility of coal-fired power plants. Downward coal flexibility refers to the ability of coal plants to reduce their output quickly when renewable energy sources are available. Enhancing this capability will allow renewable energy to take priority in the grid, minimising the use of coal power and reducing carbon emissions.

To achieve downward coal flexibility, power plant operators must invest in upgrades and adopt new operational practices that enable quick adjustments to energy demand. This step is crucial to ensure that coal plants do not hinder the growth of renewable energy sources. 

With more coal power plants planned to be retired early, accelerating renewable energy deployment should proceed in parallel to buffer the impact of coal plant closures. 

One scenario to achieve the coal phase-out target by 2040, while maintaining electricity supply and demand, is to increase the share of renewable energy to 65%. Under this scenario, solar would account for 20%, wind for 11% and other renewables – such as nuclear, geothermal, bioenergy and hydro – would make up 34%.

The calculation includes 68GWh (gigawatt hours) of battery capacity in stationary applications designed for fixed installations, to stabilise solar energy output, based on key parameters such as efficiency, capacity utilisation factor for solar plants, and storage hours.  

Funding for early retirement 

Successfully retiring coal power plants early will require dedicated financial support. The Indonesian government must collaborate with power plant owners, financiers and international partners to develop viable funding solutions that reduce the financial burden of the transition. 

Securing financing will involve exploring various funding mechanisms, such as climate finance, carbon markets and public-private partnerships. By mobilising financial resources, Indonesia can accelerate the coal phase-out process, invest in renewable energy projects and support economic diversification in coal-dependent regions. 

With electricity demand projected to grow by around 5% annually in the coming years, expanding solar energy – combined with battery storage to maximise its utilisation – offers significant opportunities to meet rising electricity demand.

Incentives for clean energy 

Storage systems are essential for addressing the intermittency of solar power and ensuring a reliable renewable energy supply. However, current policies provide limited incentives for integrating battery storage solutions into solar projects. For example, Presidential Regulation 112 sets a tariff structure that caps battery storage charges at 60% of the base tariff, which may not sufficiently cover the associated costs of battery storage infrastructure. 

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Trends in electrification of the transport sector further highlight the need for a comprehensive decarbonisation strategy to reduce its reliance on coal. Strengthening the role of private players in the electricity market could unlock substantial financing for Indonesia’s clean energy transition.  

Southeast Asian neighbours such as Viet Nam, Malaysia and Thailand have already introduced policies enabling companies to directly purchase renewable energy. Indonesia could consider similar regulations to allow clean electricity procurement for industrial clients.  

Expanding renewable energy deployment will also provide Indonesia with significant economic opportunities. The renewable energy sector can create new jobs, attract green investments, and offer access to cleaner and more sustainable power sources. Taking decisive action now will help Indonesia secure long-term economic growth, environmental stability and energy security. 

The post Indonesia’s next priority should be finding alternatives to replace coal appeared first on Climate Home News.

Indonesia’s next priority should be finding alternatives to replace coal

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Maine Presses Pause on Large Data Centers. Will Other States Follow Its Lead?

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April 15, 2026

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The moratorium is the first of its type to pass a legislative chamber, but about a dozen other states have pending proposals.

By Dan Gearino

Maine is now the first state to pass a moratorium on the development of large data centers, and others may follow.

Maine Presses Pause on Large Data Centers. Will Other States Follow Its Lead?

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Climate Activists Stage Mock Funeral for Landmark Climate Rule

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April 15, 2026

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The Trump EPA’s repeal of the 2009 endangerment finding revokes the agency’s authority to regulate climate pollution. Environmental activists are mourning the loss while vowing to resurrect it.

By Liza Gross

A procession of mourners representing sea level rise, melting permafrost, ecocide and other climate calamities grieved the demise of a groundbreaking climate rule outside the Environmental Protection Agency’s Region 9 headquarters in downtown San Francisco on Tuesday.

Climate Activists Stage Mock Funeral for Landmark Climate Rule

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IEA slashes pre-war oil demand forecast by nearly a million barrels per day

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April 15, 2026

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Global oil demand is expected to be almost one million barrels per day less than was forecast before the Iran war, as shortages and soaring costs prompt drastic cutbacks by consumers and businesses, a report by the International Energy Agency (IEA) said on Wednesday.

With the closure of the Strait of Hormuz choking off supplies and keeping prices high, less oil is being used to make products such as jet fuel, LPG cooking gas and petrochemicals, the Paris-based IEA said in its monthly oil report, forecasting the biggest quarterly demand drop since the COVID pandemic.

The Iran war “upends our global outlook”, the government-backed agency said, adding that it now expects oil demand to shrink by 80,000 barrels per day in 2026 from last year.

Before the conflict began, the IEA said in February it expected oil demand to rise by 850,000 barrels per day this year, meaning the difference between the pre-war and current estimates is 930,000 barrels a day, or 340 million barrels a year.

That could have a significant impact on the outlook for planet-heating carbon emissions this year.

At an intensity of 434 kg of carbon dioxide per barrel of oil – the estimate used by the US Environmental Protection Agency – the annual reduction in carbon dioxide emissions from oil for 2026, compared with the pre-war forecast, is similar to the amount emitted by the Philippines each year.

Harry Benham, senior advisor at Carbon Tracker, told Climate Home News that he expects at least half of the reduction in oil demand to be permanent because of efficiency gains, behavioural change and faster electrification.

The oil shock is leading to oil being replaced, especially in transport, with electricity and other fuels, just as past oil shocks drove lasting reductions in consumption, he said. “The shock doesn’t delay the transition – it reinforces it,” he added.

Demand takes a hit

While demand for oil has fallen significantly, supplies have fallen even further. Supply in March was 10 million barrels a day less than February, the IEA said, calling it the “largest disruption in history”.

This forecast relies on the assumption that regular deliveries of oil and gas from the Middle East will resume by the middle of the year, the IEA said, although the prospects for this “remain unclear at this stage”.

    Last month, US Energy Secretary Chris Wright told the CERAWeek oil industry conference that prices were not high enough to lead to permanent reductions in demand for oil, known as demand destruction.

    But the IEA said on Wednesday that “demand destruction will spread as scarcity and higher prices persist”.

    Industries contributing to weaker demand for oil include Asian petrochemical producers, who are cutting production as oil supplies dry up, the report said, while consumers are cutting back on liquefied petroleum gas (LPG), which is mainly used as a cooking gas in developing countries, the IEA said.

    Flight cancellations caused by the war have dampened demand for oil-based jet fuel, the IEA said. As well as cancellations caused by risk from the conflict itself, airports have warned that fuel shortages could lead to disruption.

    Across the world, governments, businesses and consumers have sought to reduce their oil use after the war. The government of Pakistan has cut the speed limit on its roads, so that people drive at a more fuel-efficient speed, and Laos has encouraged people to work from home to preserve scarce petrol and diesel.

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    Consumers in Bangladesh are seeking electric vehicles (EVs) to avoid fuel queues and, in Nigeria, more people are seeking to replace petrol and diesel generators with solar panels, Climate Home News has reported.

    In the longer term, the European Union is considering cutting taxes on electricity to help it replace fossil fuels and France is promoting EVs and heat pumps.

    IEA urged to help “future-proof” economies

    Meanwhile, the IEA came under fire last week from energy security experts, including former military chiefs, who signed an open letter in which they accused the agency of offering “only a temporary response to turbulent markets”, calling for stronger structural action “to future-proof our economies”.

    They said that besides releasing emergency oil stocks and offering advice on how to reduce oil demand in the short term, the IEA should show countries how to reduce their exposure to volatile oil and gas markets.

    The IEA has also been under pressure from the Trump administration to talk less about the transition away from fossil fuels.

    This article was amended on 15 April 2026 to correct the drop in 2026 forecast oil demand from “nearly a billion” to “nearly a million”

    The post IEA slashes pre-war oil demand forecast by nearly a million barrels per day appeared first on Climate Home News.

    IEA slashes pre-war oil demand forecast by nearly a million barrels per day

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