General Project Context
Indonesia has targeted to increase the share of renewable energy (RE) to 23% of the national energy mix by 2025, as stated in the National Energy Policy and NDC. However, the RE market has been stagnant due to incoherent regulatory framework and the absence of support mechanism to increase RE access to the grid. In addition, fossil fuel subsidy and limited domestic industry makes RE less competitive. The Project is addressing these barriers through development of strategy and policy instruments in a cross-ministerial context.
Objective
The project aims to increase the deployment of renewable energy (RE) through coherent policies and strategies across energy sectors, climate actions, development planning and fiscal measures.
Approach
Through proactive contribution of decision makers and private sectors, a common strategy on renewable energy deployment across sectors is to be developed (output I). The framework conditions and investment climate for RE will be improved through coherent political instruments & financing environment (output II). In addition, the capacities of decision makers will be strengthened to assess renewable energy projects from technical and economic points of view (output III). And lessons learned from innovative pilot projects and studies (output IV) will provide inputs to decision makers in developing strategy to increase renewable energy applications. Activities in work packages combine RE options, business models and emission reduction potential which will contribute to the country's climate goals.