A recent report from Wärtsilä titled “Crossroads to Net Zero” emphasizes the critical role of balanced power systems in achieving a clean energy future. With renewable energy alone insufficient to meet global energy demands sustainably, Wärtsilä’s model demonstrates the need for integrating balancing technologies into power grids. This approach could save €65 trillion by 2050 compared to systems relying solely on renewables and storage.

Two Pathways to Decarbonization

The Wärtsilä report compares two potential energy pathways from 2025 to 2050. The first involves a reliance on renewable energy sources like solar and wind combined with energy storage. The second integrates flexible, balanced power generation technologies that can respond to fluctuating renewable energy output.

The findings suggest that the second pathway offers significant advantages. Balanced power systems not only reduce system costs by up to 42% but also require less land and renewable capacity, making them more efficient and practical.

Key Findings from Wärtsilä's Model

1. Cost Efficiency: Balanced power systems can lower global power system costs by €2.5 trillion annually, equating to 2% of the global GDP in 2024.
2. Emission Reduction: This approach reduces cumulative CO₂ emissions by 19 gigatons by 2050, 21% lower than systems relying solely on renewables and storage.
3. Reduced Energy Waste: Balancing technologies optimize power systems, cutting energy waste by 88% compared to renewable-only systems.
4. Land and Resource Efficiency: Balanced systems require half the land and renewable capacity compared to standalone renewable systems.

Indonesia's Net-Zero Ambitions

Indonesia plans to achieve net-zero emissions by 2060, leveraging renewable energy and flexible power technologies. Wärtsilä’s modeling suggests that Indonesia must quadruple its planned solar power capacity in Sulawesi to 1,200 MW by 2030 to align with its goals.

Moreover, the nation’s draft electricity supply plan (RUPTL) highlights a transitional role for natural gas as a bridge between coal and renewables. Indonesia aims to expand its renewable energy capacity to 75 GW by 2040, supported by 20 GW of additional gas capacity.

Recommendations for the Power Sector

To accelerate the energy transition, Wärtsilä emphasizes the following actions:

• Streamline Renewables Deployment: Simplify permitting processes, invest in regional interconnections, and enhance transmission systems.
• Scale Balancing Technologies: Rapidly deploy short- and long-term balancing solutions to ensure grid stability.
• Reform Electricity Markets: Introduce incentives for flexibility, including capacity payments for low-operating-hour plants.
• Adopt Future-Ready Technologies: Invest in systems compatible with sustainable fuels to enable full decarbonization by the mid-2030s.

A Call to Action

Anders Lindberg, President of Wärtsilä Energy, underscores the urgency of integrating balancing technologies to achieve a clean energy future. “Transitioning to sustainable fuels and flexible power generation is not just essential—it’s critical,” he stated.

Indonesia’s unique position, with 5 GW of flexible power capacity, places it at the forefront of this transition. By harnessing its potential, the country can drive renewable integration, reduce costs, and achieve its net-zero emissions target by 2060.