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.
- 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
State of implementation/results
- In the past 6 months, ExploRE has been continuously supporting several activities. There are:
- The final draft of Academic Study on Hydrogen Governance will be submitted to the Ministry of Energy and Mineral Resources (MEMR) in March 2025, to be the baseline for the very first clean hydrogen regulatory framework in the country. GIZ will further support the drafting of the Government Regulation (PP) under other IKI-funded project, Sustainable Energy Transition in Indonesia (SETI).
- Development of technocratic document and initial draft of 2025 – 2029 MEMR Strategic Plan document through series of consultation meetings and focus group discussion (FGD). The final draft will be disseminated in the 2nd quarter of 2025.
- Development of biomethane supply and demand dashboard, which is able to provide semi-interactive maps to identify the massive potential of biomethane supply and demand from the industry sector. It will be integrated to the “MEMR One Map” website for public access.
- Formulate recommendation report for PLN’s (the state-owned utility company) dedieselisation program on how to substitute diesel power plants with biogas power plant and compressed biomethane gas.
- Technical Assistance (TA) for the biomethane business licensing (KBLI 35203) implementation through various means for MEMR and for business entities. A guideline document for business entities in applying the license is currently being formulated together with MEMR.
- Facilitation of a benchmarking trip on 28 October - 2 November 2024 for MEMR and potential biomethane players in Indonesia to learn the holistic supply chain of biomethane in Germany.
- Data collection and analysis for pulp and paper industry concluded. The total direct biomass utilisation in the palm oil, sugar cane, and pulp and paper industries mapped by ExploRE reached 17.9 million tons or more than twice the 2025 National Energy Plan (RUEN) target, significantly increasing the overall national Renewable Energy (RE) mix.
- Facilitation of training series on RE project financial modelling for government officials and PLN personnels in November 2024, aims to foster improvement of knowledge and skills in assessing the RE projects’ financial feasibility through proper financial modelling.
- Together with another IKI-funded project, Innovation Regions for a Just Energy Transition (IKI JET), recommendations on developing biomethane business are provided to relevant stakeholders in East Kalimantan and South Sumatra. The recommendations will be further developed into a strategic regional action plan in the form of policy briefs.
- TA for accelerating various RE projects' implementation is continued to be pursued, including (1) a pre-feasibility study on biomethane project from pulp and paper wastewater, and (2) technical recommendations on photovoltaics (PV) project construction in industry. Going forward, ExploRE will enter an agreement with Jakarta City Government, providing TA for PV projects in schools across the city.
Latest Update:
07/2025
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