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 • December 3, 2018
GGGI and The Nature Conservancy (TNC) supported the Fiscal Policy Agency (FPA), Ministry of Finance, as Indonesia’s National Designated Authority for the Green Climate Fund (GCF – NDA) in a workshop on 28 – 29 November 2018 in Samarinda, East Kalimantan, to raise awareness among local stakeholders on the funding opportunities from GCF. The workshop […]
News • April 13, 2018
The GGGI Indonesia and Mexico teams together with representatives of Política y Legislación Ambiental, a Non-Governmental Organization (NGO) in Mexico and Indonesia’s Lembaga Administrasi Negara (LAN) held a South-South Knowledge Exchange event on April 10-13. During the event, there was an opportunity for participants to discuss ways to promote green growth in Mexico, learn how Mexico […]
News • December 19, 2017
On December 19, 2017, GGGI Mongolia organized a Climate Investment Partnership Forum. The main objective of the Forum was to facilitate potential investment partnerships between public and private sectors for implementation of the UB City NDC and its investment plan by presenting selected pipeline projects. In September 2016, Mongolia ratified its Nationally Determined Contributions (NDCs) […]
Mongolia Transition to Green Development – Phase 2
|Start Date||Q1 2017|
|Approved Budget||USD 2 175 000|