1. Our Team

Indonesia’s potential for geothermal energy production is one of (if not the) highest in the world. The government plans to increase the total installed capacity of geothermal power plants to 9,300 megawatts (MW) by 2035.1 This is very ambitious: Indonesia currently has just 2,443 MW of installed geothermal capacity, second only to the US (3,700 MW).2 This expansion would likely make the country the global leader in geothermal power. Game-changing energy Geothermal energy could be a game-changer for Indonesia because it helps fulfill several of the government’s goals: Extending universal electricity access.

The electricity sector in Lebanon is notoriously dysfunctional, suffering from supply shortages for decades. Peak demand is 1.5 gigawatts (GW) or 219.78 megawatts (MW) per million inhabitants, higher than generation capacity.1 In comparison, the power deficit in India, where over 1 billion people live, was 1.2 GW in 2019/2020, or 0.9 MW per million inhabitants.2 What’s causing Lebanon’s power and economic crises? High (and inequitable) direct costs.

Energy is essential to industrial development. While there is a gap in understanding the precise mechanisms, Indonesia provides important insights into how electrification might be driving rapid industrialization. Dana Kassem, a Hub fellow and postdoctoral researcher at the University of Mannheim, presented her research on electrification and industrialization in Indonesia.

The global population without electricity access (overwhelmingly located in Sub-Saharan Africa and Asia) fell below 1 billion in 2018. But this have-or-have-not measure of access to electricity overlooks how much electricity people actually consume and how reliable the supply is (see more here by Todd Moss).1 Power outages are widespread in growing economies, making electricity unreliable -- even for those with ‘access.’ In addition to disrupting lives and hindering economic activity, outages indirectly cause air pollution issues.2,3 Back-Up Generators: a solution that creates more problems? During power outages, many firms and households turn to back-up diesel generators.

Investing in electrification has long been considered an essential ingredient for industrial development, and ultimately growth. In practice, the evidence is mixed, and can vary substantially across different contexts.