Indonesia has a higher solar insolation compared to other countries. Indonesia’s fuel mix is dominated by fossil fuels. Deployment of solar PV is still limited, currently only 108 MW; an enormous solar PV potential remains untapped in the country.
Energy demand continues to grow fast, and new capacity has a significant share to fulfill the growing demand. The GoI is planning to develop 35 GW of additional power capacity between 2015 and 2019, and a further 45 GW by 2025. The National Energy Policy mandates renewable energy to account for at least 23% of the primary energy mix in 2025 and 31% in 2050, up from 4% in 2011.
Recognizing the declining trend of solar PV generation cost globally, the GoI plans to add 5 GW of solar PV as part of the national energy program by 2019. The GoI realizes that this is possible only with private sector participation in the sector. To enhance private sector participation and increase the investment flow in the sector, the GoI has introduced a new regulatory framework that would impact on-grid Solar PV deployment.
GGGI and PT SMI partnership has identified a project with the Indonesia Tourism Development Corporation (ITDC) which is designing a tourism Special Economic Zone (SEZ) called Mandalika on Lombok island. In phase one, ITDC estimates a power demand of 25 MW in the SEZ to serve around 1,500 rooms of large hotel chains such as Novotel, Pullman, Club Med, Accor, Royal Tulip and their associated utilities in the next 2-3 years. GGGI is supporting ITDC in supplying green and clean energy to this SEZ by facilitating development of a solar PV demonstration project.
Project Outputs for 2017 – 18:
- Green infrastructure projects in special economic zones (SEZ) are designed and demonstrated to be financially feasible
Project outcomes for 2017 – 2018:
- Increased green investment is directed to focal sector – Energy
For ITDC, successful implementation of the project will set the basis for further development of 50 MW solar PV for the Mandalika SEZ for which the investment could scale up to USD 75 million (ITDC management’s vision).
News • October 30, 2018
On October 29-30, Dagmar Zwebe, GGGI’s Principle Program Manager in Indonesia with support from the Sustainability and Safeguards Unit was attended the APEC funded event “Empowering Women as Managers in the Renewable Energy Sector” in Singapore. The event was implemented by SD Strategies and RENAC, and followed a series of events involving selected Women Entrepreneurs […]
News • September 26, 2018
According to UN Environment, buildings accounted for 30% of global final energy consumption and 28% of global CO2 emissions in 2015. According to UN-Habitat in Africa, energy used in buildings is an estimated 56% of the total national electricity consumption. Over 70% of this energy is consumed in cities. In some cases, more than 50% […]
News • March 24, 2017
In Mongolia, the Energy Regulatory Commission (ERC) signed a MoU with the Global Green Growth Institute to improve energy conservation. In a combined statement, the ERC said its MoU with GGGI will allow joint implementation the country’s Energy Conservation laws to improve the adoption of energy efficiency and clean energy resources. Read the full article […]