<p class="Els-history-head">The energy security principle demands the fulfillment of availability, acceptability, affordability, accessibility, and sustainability. Under the financial constraints, it is very challenging to achieve. As a result, immediate decisions, often only based on the lowest cost neglecting the overall impacts, are taken. This study aims to reveal the energy provision dilemma through a literature review method and simple calculation analysis. This study intends to exemplify how to conduct an equitable analysis by comparing wind and coal power plants’ impacts from the economic, environmental, and social perspectives. This study finds that the mutually complement characteristics of NRE (New and Renewable Energy) and non-NRE (fossil energy sources) raise a dilemma in selecting the energy source, where the financial constraints exaggerate the dilemma. The study also finds that the electricity generating cost of coal is cheaper than wind, but the external costs turn over the result. Coal damages the environment more than wind, but the impacts are often neglected, and society bears the cost. A simple adsorption method could minimize the impacts, but it depends on the producers’ willingness to conduct, which eventually by the consumers’ willingness to pay the higher price. In the social aspect, both power plants have relatively more equal indirect impacts, but coal’s direct impacts are more detrimental than wind. While an energy source may excel the other, considering the specific circumstances is a must. Financial constraints aggravate the developing countries’ dilemma between achieving energy security or fulfilling the basic needs and pursuing economic growth</p>
Kaltim presumably experiences an energy paradox, where the energy system is unreliable and unsustainable, despite energy-rich. This study presumes that the paradox is caused by the ‘ill-advised energy policy’ shown by ‘energy-area incompatibility’ that is exacerbated by the ‘energy-rich syndrome’ (a mindset of feeling secure due to energy-abundance leading to a wasteful behavior). This study investigates the indication of the syndrome in Kaltim energy policy by first investigating ‘the incompatibility’ and its impacts by examining Kaltim’s geographical characteristics, energy potential, population-distribution, electricity system, and infrastructure. Also, the impacts of retaining the syndrome through cost analyses. This study finds the incompatibility between energy-sources utilization and geographical characteristics, by conducting a descriptive method with data collection and analyses. Kaltim is forest-dominated with scattered-population, suitable with an off-grid system. However, the electricity development is mostly on-grid, fossil-based designed, explaining the difficulties of electrifying the entire Kaltim, although electricity is surplus. While off-grid should be applied to NRE, the massive use of diesel-gen-sets shows wasteful behavior. By conducting a linear-regression method, this study finds that Kaltim’s electricity consumption (indicating the infrastructure sufficiency) is lower than it should be, given its incredible economic performance. The incompatibility causes infrastructure insufficiency. The cost analysis finds that the massively-used fuel oil is the most expensive. The subsidy would be around 0.003%-0.275% of Kaltim GDRP or 17 billion-1.55 trillion IDR. As the new Capital location, NRE is a must for Kaltim. To conclude, NRE utilization is very low, although its potential is huge, and Kaltim’s forested characteristics suit it. NRE only covers 3% of Kaltim’s electricity, while the potential (hydro alone) is more than 6,900MW. The incompatibility causes an unreliable electricity system, although electricity is surplus. Following Kaltim’s geographical characteristics, NRE should be optimized. This study intends to aware the policy-makers of the syndrome, thereby develop a ‘proper energy policy’.
Economic development leaves its residues on the environment, then it is believed as the cause of environmental damage. Recognizing the real cause of environmental damage during the development process is crucial, as it could prevent the government from using dirty energy sources in developing the economy. This study believes that the real cause of environmental degradation is energy consumption. Considering the importance of the energy-economy-environmental nexus where energy is hypothesized as the driver of the two-the economy and the environment, this study conducts a multi-regression analysis where the economy and environmental degradation are the dependent variables affected by energy consumption as the independent variable. Thus, the study aims to investigate whether energy consumption is the real driver of the economy and environmental degradation by comparing energy consumption impacts on both. The sample was all countries (world and economies group) from 1990-2013. The economy's elements expected to contribute to CO2 emissions (FDI, Trade, Urban population) are also under investigation. The results show that the energy coefficients are always positive and have the largest value in almost all models, indicating that energy drives the economy and environmental quality (represented by CO2 emissions). Following the second hypothesis, the impacts of Urban population, FDI, and Trade on CO2 emissions depend on the development level of the three variables. This study is expected to make the policymakers aware that the energy type they choose could improve the economy and environmental quality or put both as a trade-off.
This study aims to reveal the challenging sustainability within Indonesia’s energy provision by studying the electricity generating cost (GC) formation, externalities’ effect, and current Indonesia’s electricity and budget condition. In studying GC formation, two variables thought to have remarkable influence are fuel price (represented by Fuel Cost/FC) and operating time, which indicates the power plant’s type (represented by Capacity Factor/CF). The regression results indicate that CF has a greater impact on GC than FC; GC increases as FC increases but decreases as CF increases. FC contributes by 10%-86% of GC, subject to fuel prices and CF. Since coal is the cheapest, GCCoal < GCGas < GCDiesel, but internalizing the externalities triples the GCCoal and doubles the GCDiesel. However, its internalization is challenging as it affects the producers’ and consumers’ welfare. Sustainable energy provision is challenging due to two factors. First, there is a dilemma between applying sustainability principles and providing energy immediately. The fastest route, which is the lowest price orientation, is preferable, indicated by coal domination in the electricity mix. Second, sustainability is not the priority yet, indicated by the environment programs is outside the top ten priority development programs.
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