Indonesia is strategically shifting towards replacing remote diesel generation with solar and batteries to reduce CO2 emissions and improve energy efficiency. The estimated capital cost for this transition is around $2.5 billion to $3.4 billion, with a payback period of 3 to 6 years. The country's challenge lies in the complexity of institutional economics and the geographical spread of its population across 17,000 islands. The focus is on creating repeatable infrastructure systems for diesel replacement, rather than custom engineering solutions, to drive down costs and increase efficiency in the renewable energy transition. The goal is to establish a durable and scalable deployment system that will lead to measurable reductions in diesel usage and improved performance across the board.
Find The Lego: How Indonesia Can Turn Diesel Generator Retirement Into A Scalable Program
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