| Issue |
E3S Web Conf.
Volume 294, 2021
2021 6th International Conference on Sustainable and Renewable Energy Engineering (ICSREE 2021)
|
|
|---|---|---|
| Article Number | 02005 | |
| Number of page(s) | 5 | |
| Section | Power Systems and Engineering | |
| DOI | https://doi.org/10.1051/e3sconf/202129402005 | |
| Published online | 26 July 2021 | |
Exploring Alternative Policies to Reduce Electricity Subsidies in Indonesia
1
Research and Development Agency of Energy and Mineral Resources, Ministry of Energy and Mineral Resources, Jakarta, Indonesia
2
School of Earth and Environmental Science, University of Queensland, Brisbane, Australia
* Corresponding author: marlinap@gmail.com
Electricity subsidies in Indonesia remain high and tend to increase. Existing studies generally propose electricity subsidy reform through economic price adjustment; however, this option potentially arises political and social conflicts. The government and the State Electricity Company have also undertaken several measures to decrease electricity supply costs but those measures remain ineffective due to increasing energy prices needed as fuels for power generations. Our study analyses the effectiveness of two alternative grants for LED lamps and rooftop photovoltaic (PV), to reduce electricity subsidies for low-income residential customers with 450 VA and 900 VA electricity capacity limits. The analysis result is that replacing existing lamps with LED lamps for all those customers will cost the government US$ 313.7 million but potentially decrease electricity subsidies to US$ 208.7 million/ year for 15 years. On the other hand, installing the rooftop PV system is ineffective to bring down the electricity subsidies. The investment cost of the on-grid rooftop PV system is between US$ 827.6 and US$ 1,310.3 per house, while the electricity subsidy savings for 20 years are between US$ 724.1 and US$ 744.8.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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