Project

Mandalika Special Economic Zone (SEZ) Solar PV Project

At a Glance

Start Date Q4 2016
Funding Source Core
Approved Budget USD 32 000 000
Status Active
Thematic Area
  • Sustainable Energy
Marcel J. Silvius

Indonesia Country Representative

Project Rationale

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.

Delivery Strategy

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

Planned Results

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).

Related

News • November 10, 2014

The New Climate Economy (NCE) Report : Growth with Equity and Mitigating Climate Change Can be Done Simultaneously

Jakarta: 7 November 2014, The Bahasa Indonesia version of the New Climate Economyreport entitled “Better Growth, Better Climate” was launched today at an event hosted by the National REDD+ Agency (BP REDD+) in partnership with the United Nations Office for REDD+ Coordination in Indonesia (UNORCID). Indonesia is as one of the commissioning countries supporting the Global Commission […]

News • October 26, 2017

Ten Off-Grid Tourism Bungalows in Vanuatu to get Solar Freezer Systems

A signing ceremony was held on October 13 at the Energy4All premises in Port Vila between the Government of Vanuatu, represented by the Director General of the Ministry of Climate Change, Mr. Jesse Benjamin and the Global Green Growth Institute (GGGI), represented by Ms Katerina Syngellakis, the GGGI Pacific Regional Representative, for the transfer of […]

News • September 13, 2018

GGGI supports the Seminar on Renewable Energy organized by the Korean Embassy in Manila and Department of Energy

On September 13, GGGI supported the Seminar on Renewable Energy organized by the Korean Embassy in collaboration with the Department of Energy (DOE) held last at the Marquis Events Place, Bonifacio Global City, Philippines. The event aims to strengthen knowledge exchange of the local regulatory and technological landscape on renewable energy and how innovative technologies […]

Pushing the Envelope on Renewable Energy Sustainable Energy
Report
Pushing the Envelope on Renewable Energy

Sustainable Energy