Financing the shift away from coal, fairly

Energy Transition

The capital structures, tariff reforms and just-transition safeguards needed to retire coal early and scale renewables across the archipelago.

Background

Coal supplies the majority of Indonesia's power generation, much of it through long-dated take-or-pay contracts with young plants. The Just Energy Transition Partnership committed USD 20 billion in principle, but converting pledges into executed transactions has proved slow.

The problem we work on

Early retirement requires compensating asset owners, refinancing debt and protecting coal-region employment simultaneously — a coordination problem no single instrument solves.

Our approach

We model plant-level retirement economics, evaluate transition-credit structures, and assess the fiscal and labour-market consequences for coal-producing regions.

Projects in this area

All projects

Ongoing

Energy TransitionCilacap, Central Java

Early Coal Retirement Economics in Java

Plant-level modelling of the cost of retiring Java's coal fleet early, and evaluation of the instruments proposed to finance it.

Funded byJust Energy Transition Partnership Secretariat2025 – 2027

Ongoing

Energy Transition