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What is "Just Transition"?

Towards a Just Transition in the Philippine Electricity Sector: Challenges and Opportunities

This paper explains why transformational change in the Philippines’ energy sector is needed to meet the country’s climate commitment in a fair way.

Detail

This paper assesses the political and social feasibility of a just transition in the Philippines. It examines the energy sector’s political and socioeconomic dimensions and presents four different roadmaps to deliver a socially just energy transition while assuring the country reaches its climate goals.

As one of the world’s fastest-growing economies with the highest population growth in Southeast Asia, the Philippines faces an increase in energy demand but remains heavily reliant on fossil fuels despite its vulnerability to climate change. The authors call for an energy transition in the Philippines not only to mitigate climate change but also for economic reasons, since renewable energy has gained cost competitiveness relative to fossil fuels. However, the authors believe such a transition must also ensure universal access to electricity and reduce social inequality.

The paper recommends four “road maps to a socially just energy transition.” These include integrating energy system planning, such as grid expansion and energy access plans for rural areas; implementing renewable energy development programs that would feature rooftop solar and renewable energy support schemes; promoting energy efficiency and conservation; and maintaining some conventional electricity generation technologies to minimize the risks of stranded assets.

Indonesia’s Energy Transition and Its Contradictions: Emerging Geographies of Energy and Finance

This case study examines several problems associated with the recent surge in international solar power investment in Indonesia, including the concentration of projects in areas that already have affordable and reliable energy access.

Detail

This case study examines the implications of a surge in international investment in solar power in Indonesia since 2015. The spike in international investment partly reflects a broader shift from investment in the Global North’s established renewable energy markets to investment in emerging markets. Regulatory changes by Indonesia’s Ministry of Mineral and Energy Resources, which aimed to add 3.6 gigawatts of installed solar capacity between 2017 and 2019, also helped attract investment.

The surge in investment, however, does not fully align with Indonesia’s stated electrification goals. While foreign developers’ proposed projects will increase the country’s overall installed solar capacity, the investment landscape does not promote the small-scale, off-grid projects that would provide affordable and reliable electricity to the 25 million Indonesians currently without access. Additionally, the new pattern of investment has triggered a shift toward large-scale, centralized projects and more complex and opaque ownership structures as private financial institutions enter the market.

While investment has helped raise Indonesia’s installed solar capacity, it has done little to address the needs of the millions of Indonesians still without access to power. The current transition path has limited ability to achieve social and political transformations, suggesting a need for more thorough planning.