Partnership between

Towards Indonesia's
Low Carbon Energy Transition

Flexible Operation of Coal Generation – International experience and its application to Indonesia

This report reviews international experiences and mechanisms from Germany, Australia and UK, to incentivise owners of fossil fuel assets at risk of stranding to pivot to support security of supply. This document also discusses the planning for an orderly transition from coal to renewable energy that ensures timely solutions and efficient management. This is essential as in Indonesia, the economics of renewable energy and existing coal have not created cost pressure to force the switch to renewable energy, and the large reserve margin implies that these concepts will only be relevant in the future.