At a Glance
|Start Date||Q4 2016|
|Actual Budget (USD)||32,000,000|
|Actual Expenditure (USD)|
|GGGI Share (USD)|
|Poverty and Gender Policy Markers|
|Name of Client (Lead/Prime implementer if GGGI is part of a consortium)|
|Participating Organization (Funding/donor)|
|Name of consortium members, if any|
The Provincial Government of Nusa Tenggara Timur (NTT) realizes that NTT is one of the areas where there is little or no electrical grid infrastructure. NTT has an electrification rate of 59%, which is extremely low compared to the national average of 93% as per June 2017. Furthermore, their current energy mix is dominated by diesel power providing about 86% of the region’s energy demand, while in fact, NTT can unlock the potential of high solar energy availability from regular irradiation of over 50% for 8 hours per day and from a long dry season lasting 9 months per year.
Meanwhile, 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. Therefore, NTT government decided to address the challenges of electrification and to foster sustainable advancement of energy industry in NTT by promoting solar photovoltaic (solar PV) development in the province.
Eight strategic locations were identified in an agreement between NTT government with PT Perusahaan Listrik Negara (PLN) to develop demonstration projects. NTT Governor, Frans Lebu Raya, directs the project development on his vision to reduce diesel consumption and CO2emission in the province and reduce operational costs for PLN.
GGGI was assigned to design the project and prove the technical as well as financial viability for this development. Focusing on a hybrid model that combines existing traditional diesel-based power grid with solar PV, the key result of pre-feasibility analysis conducted by GGGI indicates that the hybrid generation facilities with energy storage systems in all eight sites would be able to reduce diesel consumption by 236 million liters or the equivalent to a total reduction of 549,300 CO2 emissions over 20 years. This also translates to potential savings for PLN of approximately USD 125 million over 20 years.
Project Outputs for 2017 – 18:
- Green energy projects are designed and demonstrated to be financially feasible
Project outcomes for 2017 – 2018:
- Increased green investment is directed to focal sector – Energy
• Demonstrate a successful island solution for renewable energy projects to provide energy access for meet combined loads of productive usage and household requirements, particularly to regions with limited/no connectivity.
• Save $140 million in 20 years for the utility. These potential savings can be used to electrify about 25,000 families.
• Reduce 630,000 tonnes of CO2 emission in the project lifetime.