Details - International Climate Initiative (IKI)

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Promotion of Least Cost Renewables in Indonesia (LCORE-INDO)

As of: May 2018

Objective and activities

The project supports Indonesia in planning and implementing renewable energy (RE) programmes that optimise the cost/benefit ratio of electricity generation and CO2 avoidance, thereby helping to achieve the country’s climate change mitigation and development goals. In cooperation with the private sector, the project partners are developing and testing cost-effective methods of replacing fossil fuels. Using these, the project partners draw up viable policies, guidelines and promotional programmes in order to tap the economic potential of renewable energies. Within the extension of LCORE, the project advises and trains partners on instruments for project financing, net integration and expansion strategies for grid connected RE, particularly addressing Indonesia’s situation as the world's largest archipelago.

State of implementation/results

  • Feed-in tariff approved for electricity generated using biomass/biogas, on which the project advised the Indonesian partners. The same attributes to a net-metering regulation for the self-consumption of photovoltaic.
  • Advising the Indonesian Government on developing guidelines, which include detailed explanations of process steps, legal regulations and the tariff structure. The target groups are private sector project developers in the area of bioenergy power plants.
  • Implementation of pilot projects that demonstrate the technical/economic feasibility of renewable energy systems, e.g. a PV-Hybrid system with Misool Eco Resort, a rooftop solar system with energy provider Jawa Power, a solar-powerden ice-machine for the fishing sector, PV powered off-grid cold storage and the use of palm oil mill effluent (POME) for energy generation. The potential greenhouse gas savings are estimated at approx. 180,000 tonnes of CO2 eq per year. Additional 40 projects, whose additional energy-saving potential is estimated at over 800,000 tonnes of CO2 eq per year, were identified and analysed.
  • Study trips to Germany with participants from public institutions, including the Indonesian project partner, to the solar industry trade fair Intersolar in Munich and the RENAC Green Summer School in Berlin. Tour of a total of 10 renewable energy power plants in Germany as well as participation in a workshop on financing and a policy round table on bioenergy use in Indonesia.
  • Developing a monitoring and evaluation system for the climate-relevant impact of bioenergy for project partners with recommendations of further use. Furthermore, a NAMA proposal for EE project financing in the bioenergy sector has been developed and a roadmap towards a sustainable financial system has been supported together with UNEP.
  • Advising the political partner in a SWOT-analysis of government funded and built biogas/biomass systems, which have massive problems in operations and maintenance or do not produce power even after completion.
  • Biogas performance benchmarking to analyse the technical performance of biogas systems and formulate best practice guidelines to be applied by the operators. The results of the benchmarking and best practice analysis were discussed with stakeholders from the public and private sphere in a workshop to define potential future political instruments.

Project data

Country:
Indonesia

Implementing organisation:
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Partner institution(s):
  • Ministry of Energy and Mineral Resources (MEMR) - Indonesia

BMU grant:
€ 5,545,000

Duration:
03/2012 till 10/2018

Website(s):

Fact sheet:
Energetic Use of Palm Oil Residues in Indonesia and Thailand (PDF, 1 MB)



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