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 26, 2018
GGGI supported the Government of Indonesia (GoI) as it reconfirmed its commitment to mainstream Low Carbon Development and Green Economy in the National Mid-term Development Plan at the conference on Low Carbon Development and Green Economy on 11 October 2018 in Bali. Held as a parallel event to the IMF-World Bank Annual Meetings 2018 and […]
News • October 3, 2019
Port Vila, Vanuatu, October 2 – The National Energy Road Map Implementation Plan (NERM-IP) developed by the Department of Energy with technical support from the Global Green Growth Institute (GGGI) was launched on Tuesday 1st October, by the Minister of Climate Change Adaptation Honourable Bruno Lengkon (MP). Minister Lengkon, formerly Minister of Foreign Affairs in […]
News • September 29, 2019
27 September 2019, Kigali – The Global Green Growth Institute (GGGI) in collaboration with the Rwanda Housing Authority (RHA) celebrated World Green Building Week 2019 in Rwanda from 23 – 29 September. The World Green Building Week organized by the World Green Building Council is an annual campaign that motivates and empowers everyone to deliver […]
News • May 31, 2019
Three Ways the Global Green Growth Institute is supporting the Government of Rwanda to Reduce Air Pollution
Ambient air pollution has risen sharply in recent years, especially in urban centers. Increasing rates of congestion combined with rising levels of personal vehicle ownership and limited public transport infrastructure have resulted in cities in sub-Saharan Africa exhibiting some of the highest levels of PM2.5 particulate matter in the world. Recent research has found that […]