Dear IEEFA Asia Community,
Building on our conviction that the clean energy transition is one of Asia's greatest economic opportunities, our research and events this month have continued to focus on solutions to prioritize renewable energy investments.
On 28 July, the IEEFA Energy Finance Forum 2026: Financing Indonesia’s Energy Transition welcomed over 215 delegates in Jakarta and online from the Government of Indonesia, state-owned enterprises, multilateral institutions, the private and financial sectors, and civil society.
The Forum advanced policy dialogue on aligning renewable energy investment and deployment with demand growth, mobilizing capital through blended finance and public-private partnerships, and fostering Indonesia’s carbon market.
Our team’s research this month also demonstrates the financial case for renewable investment and fossil fuel retirement across Asia:
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The energy shock following the recent Middle East conflict reinforces the need for accelerating the deployment of renewable energy in Asia. Given sufficient manufacturing capacity for solar, wind, and battery storage, along with declining costs of clean energy technologies, renewables offer an increasingly affordable solution to Asia's energy trilemma of affordability, security, and climate sustainability.
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Ammonia co-firing in coal-fired power plants (CFPPs) is a key component of Japan’s power sector decarbonization strategy. However, electricity from 20% ammonia co-firing is expected to cost 145–220% more than onshore wind and 240–464% more than commercial solar. Prioritizing investment in commercially proven technologies could provide a more cost-effective pathway to decarbonization.
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Indonesia’s heavy reliance on subsidized liquefied petroleum gas (LPG) cost the government IDR87 trillion in subsidies in 2025. IEEFA finds that electric induction offers the most economical alternative to LPG cooking with a one-time investment of IDR105 trillion that could be recovered through avoided LPG subsidies in around 1.7 years.
Warm regards,
Paige Nguyen
Director, Asia
Institute for Energy Economics and Financial Analysis
