Energy Transition Initiative: Powering Sustainable Growth in Indonesia

A major state-owned energy company in Indonesia partnered with Eurogroup Consulting to accelerate its transition towards sustainable energy. The client’s objective was to diversify its energy portfolio by increasing renewable energy generation and to improve the efficiency of its power distribution network across the archipelago.

The energy provider was heavily reliant on fossil fuels, which posed risks due to volatile fuel prices and international pressure to reduce carbon emissions. Many remote communities in Indonesia still lacked reliable access to electricity, highlighting gaps in the national grid coverage. The existing power infrastructure suffered from inefficiencies and high transmission losses, partly due to aging equipment and inadequate maintenance. Additionally, regulatory complexities and a lack of technical expertise in renewable technologies hindered the company’s ability to quickly adopt solar, wind, and other clean energy solutions. These challenges threatened the company’s long-term sustainability and its mandate to support Indonesia’s growing energy needs.

Eurogroup Consulting developed a multifaceted energy transition strategy focusing on renewable integration, grid modernization, and capacity building. The plan called for significant investment in solar and wind projects, starting with pilot renewable installations in high-potential regions to demonstrate viability. To support these new energy sources, the consulting team proposed upgrades to the grid infrastructure, including smart grid technologies and energy storage systems to improve reliability and reduce transmission losses. A regulatory task force was set up to work with government bodies, smoothing the approval processes for renewable projects and ensuring compliance with emerging energy regulations. Simultaneously, Eurogroup Consulting instituted a knowledge transfer program by bringing in renewable energy experts to train the company’s engineers and managers, building in-house expertise for sustaining the transition.

The initiative began with a comprehensive assessment of the client’s current energy mix, grid performance data, and the regulatory landscape. Eurogroup Consulting then facilitated strategic workshops with the company’s leadership to set clear targets for renewable energy capacity and efficiency improvements. Pilot projects were launched, including a solar farm on an eastern Indonesian island and a wind turbine installation in a coastal area, to gather real-world data and refine the implementation approach. In parallel, an audit of the grid was conducted to prioritize critical upgrades, and vendors for smart grid technology were evaluated. The consultants coordinated closely with government stakeholders through the regulatory task force to address policy barriers and secure incentives for renewable investments. Throughout the project, progress was monitored against milestones for capacity added and loss reduction, and adjustments were made to rollout schedules based on pilot results and grid stability considerations.

To ensure the long-term success of the energy transition, Eurogroup Consulting recommended the establishment of a dedicated Renewable Energy Division within the company. This division would oversee all clean energy projects, track technological advancements, and form strategic partnerships with global renewable firms. It was also advised that the client implement an ongoing grid maintenance and optimization program, using data analytics to predict and prevent failures in the distribution network. Eurogroup Consulting underscored the importance of community engagement and education initiatives to promote local acceptance of renewable projects and encourage energy conservation among consumers. Finally, the client was encouraged to continuously review and adapt its energy mix strategy in line with government policies and international sustainability commitments, keeping it on track toward a greener energy future.

The energy transition initiative delivered substantial benefits for the client and the broader community. Within the first few years, the company successfully added several hundred megawatts of renewable energy capacity, accounting for a significant increase in the overall energy mix. These projects provided reliable power to thousands of households in previously underserved areas, marking a meaningful improvement in energy access. Upgrades to the grid and the introduction of smart technologies led to a noticeable decrease in transmission losses and improved power reliability, reducing blackout incidents in key regions. The initiative also strengthened the company’s compliance with environmental standards, earning it recognition from government and international bodies for its commitment to sustainability. Financially, the diversification into renewables and efficiency gains in the grid helped stabilize long-term operating costs, positioning the energy provider as a resilient and future-ready leader in Indonesia’s energy sector.