Home Blog The Cost of Renewable Energy, Will It Cost More to Save The World? Business Licenses | Business Setup The Cost of Renewable Energy, Will It Cost More to Save The World? InCorp Editorial Team 9 January 2023 4 minutes reading time Table of Contents The Appeal of Renewable Energy Investment How Costly is The Renewable Energy Transition? Indonesia Renewable Energy Initiative It is astounding how quickly wind and solar power have developed. A short time ago, local and regional players were frequently responsible for creating new solar and wind farms, and the price was much greater than that of a coal plant. Today, the cost of renewable energy has drastically decreased, and giant multinational corporations are undertaking numerous solar and wind projects. These companies frequently also announce astronomical development goals. The Appeal of Renewable Energy Investment Renewable and sustainable procurement energy, spearheaded by wind and solar, is poised to become the foundation of the global power supply as nations work to meet aggressive decarbonization targets. The growth narrative, however, is just beginning. New kinds of companies are joining the market, in addition to capacity expansions from big energy suppliers. Major oil and gas companies, private equity players, and institutional investors that prioritize renewable energy as a critical component of their investment strategies are some of today’s fast followers. Business To Reduce Their Carbon Emission These companies want to change their business models so they can benefit from the increased demand for renewables and the electrification of vehicles. Companies that make cars are also entering into agreements for renewable energy to power their operations and production and investing in wind and solar projects. Steel producers are looking at green hydrogen to decarbonize their steel manufacturing, with renewables providing the green power for the process. Leaders in the shipping sector are investing in renewables to enable the production of hydrogen and ammonia as zero-emission fuel sources. The drive to expand solar and wind power capacity puts more pressure on developers to work quickly and effectively while ratcheting up competition for limited resources. Read more: The Future of the Coal Power Plant Business in Indonesia How Costly is The Renewable Energy Transition? A significant increase in capital-intensive clean energy assets. Wind, solar PV, electric cars, and hydrogen electrolyzers are necessary to put the world on a path to achieve net zero emissions by 2050. These assets have relatively high upfront investment costs and lower operating and fuel costs over time. According to the IEA Net Zero Emissions by 2050 Scenario (NZE), the private sector will require to fund roughly 70% of clean energy investment over the next ten years. Other than that, access to low-cost funding must be made more accessible, especially in emerging and developing nations, if investment in clean technology is to increase. The widespread mobilization of low-cost debt, such as those offered by banks and credit unions, is essential to capital structures because clean energy transitions require substantially higher amounts of equity and debt. The Benefits of Renewable Energy Investment The cost of an energy transition that would keep the rise in global temperature well below 2 degrees would be $19 trillion higher than a business-as-usual strategy. Still, the benefits would be worth $50–142 trillion by 2050, increasing the global GDP by 2.4%. Indonesia is among other countries that are determined to reduce carbon emissions by imposing legal and economic policies and incentives. Entrepreneurs should start to capitalize by expanding their business to Indonesia and gain competitive benefits, supported by the government. Indonesia Renewable Energy Initiative By formally collaborating with Australian renewable energy company Sun Cable, the Indonesian government has taken the first step toward building an energy distribution network that will likely unlock the region’s estimated $115 billion in green sustainable economic development possibilities over the following ten years. To address the mismatch between renewable energy supplies and the locations of high electricity demand areas, as well as to maintain the stability and security of the electricity system, Indonesia is preparing to develop a super grid. InCorp Indonesia can help you by providing a business license to tap into the new business potential. The Acceleration According to Indonesia, the ETM Country Platform would use a hybrid finance strategy to hasten the transition from dirty energy sources to clean ones. To oversee the ETM and provide a funding and investment framework, PT Sarana Multi Infrastruktur (PT SMI), a division of Indonesia’s finance ministry that finances infrastructure projects, has been chosen. The Climate Investment Funds’ governing board has approved giving Indonesia $500 million at highly reduced rates. As a result of these funds, more than US$4 billion in financing will be ready to speed up the retirement of up to 2 GW of coal-fired power plants, assisting in the reduction of an anticipated 50 million tonnes of carbon dioxide emissions by 2030 and 160 million tonnes by 2040. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions Can you provide pricing examples for company registration services? To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don’t hesitate to contact our consultants. What responsibilities does a PMA company have in terms of non-tax compliance? In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as: Annual financial report Investment realisation report Manpower and employee welfare report Expatriate utilisation report Company loan repot Foreign exchange and prudential principles report However, depending on the business activities and classification relevant authority may require additional reports from a PMA company. Can investors own shares with preferential rights? Under Indonesian Company Law, shareholders can hold shares with various preferential rights, such as voting rights, nomination rights for board members, priority dividend or liquidation proceeds, and options for conversion or withdrawal after a set period. What if my product has been registered under a local distributor, and I decide to transfer the license to my company or another distributor? You can transfer the license if your local distributor agrees to change the product license holder. 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Lead Form Notify Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses How Omnibus Law Liberated Shipping Industry in Indonesia for Foreign Investment Read more The Future of Financial Technology in Indonesia: Trends and Opportunities Read more Opening A Restaurant in Bali: Why and How? Read more