Mega conversion from LPG to induction stove to achieve Indonesia's clean energy transition

Abstract

The Indonesian government faces an increased burden on the state budget from the energy subsidy, especially from the Liquefied Petroleum Gas (LPG) subsidy for the residential sector. According to the Indonesia 2019 State Budget, the LPG subsidy for 3 kg (kg) cylinders was estimated to cost more than $ 4.9 billion in 2019. On the other hand, Indonesia is in the process to build many new power plants with a total capacity of up to 35,000 MW (megawatt). The added capacity will lead to an excessive power capacity due to the slowdown in economic growth. Therefore, Indonesia's government has launched an induction stove program to convert households to electric cooking to utilize the excess power while reducing the LPG subsidy. However, the literature review regarding the economics and policy of the development of induction stoves in Indonesia's electricity market is still limited. This research provides the economic assessment of induction stoves compared to the utilization of LPG stoves for each electricity and LPG tariff, i.e., subsidy and non-subsidy tariff. This research could also serve as an academic reference for energy sector stakeholders in Indonesia to implement the clean energy policy to shift cooking technology from LPG stoves to induction stoves.