Energy Security Implications of Introducing Renewable Portfolio Standard in Indonesia

Marpaung, Charles OP and Widodo, Bambang and Soebagio, Atmonobudi (2012) Energy Security Implications of Introducing Renewable Portfolio Standard in Indonesia. In: The 2nd Congress of East Asian Asosiation of Environmental and Resource Economics, 2-4 Februari 2012. (Unpublished)

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Abstract

An AIM/Enduse model has been developed to examine the implications of considering renewable portfolio standard (RPS) in Indonesia on energy security. Three levels of RPS are considered in this study, i.e., 15%, 25%, and 35%, while the planning horizon of analysis is from 2005 to 2035. The energy security is measured based on the diversification of energy use in the total primary energy supply (TPES). The diversification of energy use is measured by using Shannon-Weiner Index (SWI). The results show that the SWI would increase with the introduction of RPS. The SWI at the base case during the planning horizon would be 1.325, and would increase to 1.443, 1.553, and 1.621 if RPS of 15%, 25%, and 35% are considered respectively. The Shannon-Weiner Indices increase due to an increased share of renewable energy, such as wind, pv, biomass, and nuclear to the total energy use in the power sector.

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