Are just energy transition investment plans tailored to country-specific challenges? Comparing South Africa and Indonesia

Abstract

This paper provides a comparative analysis of the Just Energy Transition Investment Plans (JET-IPs) of South Africa and Indonesia, focusing on their effectiveness in driving private investment in renewable energy (RE). Using a three-level framework, it examines country-specific barriers and enablers at the country, programme, and project levels. Both JET-IPs aim to align economic development and emission reduction goals, with significant reliance on private investment for RE projects. The analysis reveals key differences in energy policy frameworks, sectoral planning approaches, and governance structures between the two countries. It underscores the pivotal role of concessional finance and regulatory reforms in addressing investment risks, emphasizing the need for stronger institutional coordination and long-term planning to accelerate the energy transition. Lessons from the two JET-IPs offer insights for other countries embarking on similar initiatives, particularly in tailoring energy transition strategies to address unique domestic challenges.