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See detailThe Cost of No Reform: Assessing the Impact of Different Electricity Pricing Regimes on Indonesia\textquoterights Energy Trilemma
Heffron, Raphael; Körner, Marc Fabian; Sumarno, Theresia et al

E-print/Working paper (2021)

Many countries have a clear policy objective of increasing their share of renewable energy sources (RESs). However, a major impediment to higher RES penetration often lies in the historically grown ... [more ▼]

Many countries have a clear policy objective of increasing their share of renewable energy sources (RESs). However, a major impediment to higher RES penetration often lies in the historically grown structures of a country\textquoterights electricity sector. In Indonesia, policy makers have relied on cheap fossil fuels and state control to provide the population with access to both reliable and affordable electricity. However, this focus on only two of the three horns of the energy trilemma, namely energy security and energy equity (and not sustainability), may put Indonesia at risk of missing its ambitious RES targets. In this context, a number of small-scale reform attempts to promote RES integration in recent years have proved to be relatively unsuccessful. Like many other countries, Indonesia needs clear policy directions to avoid an unsustainable lock-in into a fossil fuel future. In the last decades, several other countries have successfully restructured their electricity sectors, for example by introducing a wholesale market for electricity under different electricity pricing systems, including nodal, zonal, or uniform pricing. These countries may hold valuable experiences of overcoming the historically grown barriers to successful RES integration through a greater role for market mechanisms. We develop three generic models that allow policy makers to analyze the impact of introducing either a nodal, a zonal, or a uniform pricing system on the three horns of the energy trilemma in their country. We evaluate our model using a simplified network representation of the Indonesian electricity sector. Our results indicate that each of the pricing systems is able to foster specific horns of the energy trilemma. Considering that any major reform intended to improve energy sustainability in Indonesia will only be a success if it also addresses energy security and energy equity, we also discuss our results from the perspective of energy justice and the need to balance the country\textquoterights energy trilemma. Ultimately, we illustrate a transformation pathway for a more sustainable and just transition to a low-carbon economy in Indonesia. [less ▲]

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See detailIndustrial demand-side flexibility: A key element of a just energy transition and industrial development
Heffron, Raphael; Körner, Marc-Fabian; Wagner, Jonathan et al

in Applied Energy (2020)

In many countries, industry is one of the largest consumers of electricity. Given the special importance of electricity for industry, a reliable electricity supply is a basic prerequisite for further ... [more ▼]

In many countries, industry is one of the largest consumers of electricity. Given the special importance of electricity for industry, a reliable electricity supply is a basic prerequisite for further industrial development and associated economic growth. As countries worldwide transition to a low-carbon economy (in particular, by the development of renewable energy sources), the increasing fluctuation in renewable energy production requires new flexibility options within the electricity system in order to guarantee security of supply. It is advanced in this paper that such a flexibility transition with an active participation of industry in general has unique potential: It will not only promote green industrial development, but also become an engine for inclusive industrial development and growth as well as delivering a just transition to a low-carbon economy. Given the high potential of industrial demand-side flexibility, a first monitoring approach for such a flexibility transition is illustrated, which bases on a flexibility index. Our flexibility index allows for an indication of mis-developments and supports an appropriate implementation of countermeasures together with relevant stakeholders. Hence, it holds various insights for both policy-makers and practice with respect to how industrial demand-side flexibility can ensure advances towards an inclusive, just, and sustainable industrial development. [less ▲]

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