ExploRE - Strategic exploration of economic mitigation potentials through renewables

The government of Indonesia is focusing on the expansion of renewable energies (RE) to achieve the country’s climate mitigation targets as defined in its NDC. The project supports the Indonesian government in the dissemination and demonstration through pilot projects of a strategy for cost-effective use of RE. These activities are intended to mitigate greenhouse gas emissions through closely linked energy, financial, and planning policies. To achieve this goal, the project advises the responsible ministries on the development financing guidelines for RE and legislation on feed-in tariffs. Besides, the project supports coordination between key ministries and develops financing instruments to promote private investment in RE. These measures will ensure the expansion of RE in the long term.

Project data

Countries: Indonesia
IKI funding: 5,350,000.00 €
Duration: 11/2018 till 12/2025
Status: open
Implementing organisation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern

Ministry of Energy and Mineral Resources (MEMR) - Indonesia

Ministry of Finance - Indonesia

State Ministry of National Development Planning (BAPPENAS) - Indonesia

The Coordinating Ministry of Maritime and Investment Affairs of the Republic of Indonesia
Implementing Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
Online: https://www.giz.de/en/projects/strategic-exploration-economic-mitigation-potentials-through-renewables-explore

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State of implementation/results

Through technical assistance for various Renewable Energy (RE) projects, ExploRE contributed a total estimated reduction of 3,417,943 tCO2e as of June 2025 and is projected to reduce up to 3,752,878 tCO2e by December 2025.
Indonesia has adopted carbon pricing as a key instrument to achieve its energy transition target. To support this endeavour, ExploRE organized capacity-development activities to strengthen carbon market implementation for RE projects through better accounting and reporting. In 2024, the project partnered with the Financial Service Authority (OJK) for a 3-day workshop with financial institutions. In April 2025, ExploRE collaborated with the State-owned Electricity Company (PLN) to train over 3,700 participants on the concurrent topic.
Through collaborating with the Ministry of Energy and Mineral Resources (MEMR) and PLN, several initiatives have been launched by ExploRE to improve the achievement and implementation of the energy transition target of the Electricity Supply Business Plan (RUPTL). Further assessments of the economic potential of waste-based biomass feedstocks to be utilized for power generation in four districts in North Sumatra have been completed and the results will be incorporated in PLN’s planning and implementation. In addition, ExploRE has finalized recommendations to improve PLN’s current RE procurement process, one of the main bottlenecks for a massive RE projects deployment in the country. One of the recommendations for setting up a new independent RE procurement agency will be further explored by GIZ and MEMR.
ExploRE is continuously emphasizing the vast potential of waste-based bioenergy by strengthening the biomethane ecosystem in Indonesia through a multi-layer approach: policy advisories, promotion of higher investments, and ensuring quality project implementation. ExploRE is currently finalizing the recommendations for the required supportive regulations for biomethane, preparation of biomethane investments and business licensing guidelines, as well as a Health, Safety, and Environment (HSE) handbook for biomethane plants.
Supporting the expansion of RE utilisation, ExploRE is providing technical assistance for the Jakarta Provincial Government PV rooftop projects implementation across the province. This support includes the development and implementation of a commissioning check list and training for Jakarta Provincial Government staff to be able to check the quality of PV by themselves in the future.
In addition to its support for a higher RE projects deployment, ExploRE also provides safeguards measures to ensure sustainability in the implementation of supported projects, i.e. to ensure sustainable practice in biomass utilisation for power generation, a sustainable biomass feedstock indicators report is developed together with MEMR in 2025. In addition, a training series on PV and battery waste management with operators of supported PV projects will be held to ensure the adequate treatment of hazardous materials from PV projects.

Latest Update:
12/2025