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Rethinking Electricity Subsidies to Achieve Indonesia’s Energy Security and Green Economy Targets

This study analyzes electricity subsidy policy in Indonesia in relation to energy resilience, green energy transition, and fiscal sustainability. The study uses three main simulations (BAU and LTES) to evaluate the impact of subsidies on electricity tariffs, fiscal needs, and macroeconomic indicators until 2045. The results show that the current electricity subsidy, while supporting affordability for low-income households, has not yet encouraged productive use of electricity and, in fact, burdens the State Budget (APBN). Transitioning to renewable energy (LTES) can reduce the need for subsidies by up to 42% by 2045.

11-2025     |     Clean, Affordable and Secure Energy (CASE)
Energy Transition Renewables
Global landscape of energy transition finance 2025

Global energy-transition investment reached a record USD 2.4 trillion in 2024, but most funding still flows to advanced economies and China, leaving many emerging markets behind. Renewables drew USD 807 billion, yet growth slowed sharply. The report warns investment remains below 1.5°C needs and calls for more concessional, impact-focused finance.

11-2025     |     IRENA - International Renewable Energy Agency
Energy Transition
Socio-economic footprint of the energy transition: Southeast Asia (2nd edition)

ASEAN stands at a defining moment, balancing geopolitics, a just energy transition, and regional integration through power interconnection. IRENA’s updated socio-economic footprint report finds that under a 1.5°C Scenario, Southeast Asia’s GDP could grow 2.6% annually (2023–2050), driven by investment, trade, and social policies enhancing resilience and inclusiveness.

10-2025     |     IRENA - International Renewable Energy Agency
Energy Transition
Decarbonising Southeast Asia’s Hard-to-Abate and High-Emitting Sectors: Transition Finance, Technologies, and Policy Approaches

 

This joint report by ERIA, ADB, and METI examines the evolving role of transition finance, technology, and policy in supporting the decarbonisation of Southeast Asia’s emissions-intensive sectors such as power and heavy industry – the so-called ‘high emissions’ and ‘hard-to-abate’ sectors, respectively. These sectors are highlighted in high-level roadmaps that identify key investment areas for a pragmatic energy transition.

10-2025     |     ADB - Asian Development Bank,Economic Research Institute for ASEAN and East Asia (ERIA),Ministry of Economy, Trade and Industry
Energy Transition
Thailand Country Climate and Development Report

The Thailand Country Climate and Development Report (CCDR) charts a strategic path aligning climate action with national development. It urges rapid adaptation and emission reduction to safeguard growth, manage risks, and unlock green opportunities across Thailand’s comparative advantage sectors, emphasizing that inaction costs far outweigh investments.

10-2025     |     World Bank
Energy Transition
Study on the Roadmap for Multilateral Power Trade in ASEAN

The Study on the Roadmap for Multilateral Power Trade in ASEAN analyses how cross-border electricity trading can strengthen regional energy security, affordability, and sustainability. It outlines institutional, regulatory, and technical pathways, providing guidance for ASEAN Member States to design policies and mechanisms that support a phased approach—starting with subregional markets and building toward an integrated ASEAN-wide power trade system.

09-2025     |     ACE - ASEAN Centre for Energy ,Clean, Affordable and Secure Energy (CASE)
Power Distribution
Integrating Solar and Wind in Southeast Asia

Southeast Asia’s electricity demand is set to double by 2050, with solar and wind now among the most cost-competitive options. This IEA report assesses the region’s readiness to integrate higher shares of variable renewables, outlining key challenges, opportunities, and actions for policymakers and utilities through 2030 and beyond.

09-2025     |     IEA - International Energy Agency
Solar Energy Wind Energy
Advancing Green Ports: Funding and Financing for Maritime Decarbonization

This brief shows how ADB plans to help Asia and the Pacific’s ports cut emissions, reduce their carbon footprint, and become more resilient using loans, grants, and equity from its proposed $1 billion Sustainable and Resilient Maritime Fund (SRMF).

08-2025     |     ADB - Asian Development Bank
Decarbonization