Power Sector Decarbonization Strategies

Policy Recommendations: Clean Energy Deployment Develop clear medium-term VRE deployment targets with associated tender timelines would help PLN benefit from low PV and wind power prices. Three regulatory changes can help Indonesia boost private investment in RE: reducing local content requirements, phasing out coal and fuel subsidies and lifting RE price controls. New investments in grid flexibility are needed to integrate RE and appropriate pricing mechanisms and regulation is critical for their viability.

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