Investor Presentaiton
Decarbonization Strategy
Indonesia Electric Vehicle Outlook 2023
Electrification of road transport as a quick and
ready-to-implement strategy of transport sector
decarbonization
• Road transport is the biggest source of emissions in the demand side of energy
sector in Indonesia. Decarbonization of road transportation requires both
changes in traveling behavior to reduce demand and transition to clean energy
to cover the remaining demand (Agora Verkehrswende, 2017). Similar concept is
also suggested by the Avoid-Shift-Improve (ASI) strategy (SLOCAT, 2018). Changes
in traveling behavior are achieved by reducing unnecessary travel (Avoid) and
shifting to low-carbon modes (Shift), while transition to clean energy is achieved
by improving efficiency and switching to electric vehicles or low-carbon fuels
(Improve).
•
Switching to electric vehicles (EV) is a key strategy to road transportation
decarbonization, as it has the potential to reduce emissions concurrently with the
power sector decarbonization. The increased electricity demand from EVs would
provide an opportunity to accelerate the deployment of renewable energy (RE).
In the long term, it could facilitate the deep integration of RE by providing flexible
demand through vehicle-to-grid operation.
• The emission reduction potential of EVs can be obtained at low cost, or even
negative cost. The total cost of ownership (TCO) of a passenger EV could be lower
than a comparable internal combustion engine vehicle (ICEV). For ride-hailing
service providers, switching to electric 2-wheelers allows them to save up to IDR
700 thousand per month. In addition, unlike the Avoid and Shift strategy, which
requires the government's systematic planning, everyone can participate in the
Improve strategy by purchasing EVs.
Key
Elements
Avoid
Shift
Avoid Shift - Improve Strategy
Definitions
Avoid and reduce the need
for motorized travel
TCC-GSR
Policy Examples
Transport Demand Management
Shift to more
environmentally friendly
modes
Urban Public Transport
Railway
Walking and Cycling
New Mobility Services
Improve
Improve energy efficiency
Source: SLOCAT, 2018
of transport modes
Fuel Economy
Electric Mobility
Renewable Energy
The geometry of the transport transformation
Mobility Transition
The transition to
sustainable mobility
will reduce energy
consumption without
limiting mobility.
Transport Transformation
This large-scale transformation will ensure
that transport is carbon neutral by 2050.
Source: Agora Verkehrswende, 2017
學
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Energy Transition in
Transport
The transition to clean energy
in the transport sector will
cover remaining demand
with carbon-neutral energy.
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