Unleashing the potentials of renewable energies in Indonesia
Title: 1,000 Islands – Renewable Energy for Electrification Programme Phase II (REEP2)
Commissioned by: Federal German Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi (DJ EBTKE), Kementerian Energi dan Sumber Daya Mineral (ESDM), Republik Indonesia
Overall term: 2021 to 2024
Indonesia is the world's largest island nation. Its electricity demand is growing fast. The state electricity company PLN operates over 600 grids, and power is generated with coal and sometimes even with costly diesel fuel. Indonesia's electricity consumption is currently comparatively low but set to increase significantly to improve the economic development and quality of life. Covering this need in an environmentally sound and economic way remains a challenge for Indonesia.
The Indonesian Government recognises the potential of renewable energy as a widely available domestic and climate friendly energy source. In its national energy plan, it has set the target to reach 23 per cent of renewable energy in the overall mix by 2025, which is essential for Indonesia's commitment to the 2015 Paris Agreement of reducing greenhouse gas emissions by 29 per cent by 2030.
So far, Indonesia has limited experience in integrating renewable energy into the numerous local grids. Successful examples of this need to be demonstrated and scaled up to overcome the numerous technical, administrative and regulatory challenges.
The Directorate General of New Renewable Energy and Energy Conservation (EBTKE), in cooperation with GIZ, acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), is jointly implementing the 1,000 Islands - Renewable Energy for Electrification Programme Phase 2 (REEP2).
Indonesia is moving confidently towards achieving a 23 per cent share of renewable energies in its electricity mix.
REEP2 supports Indonesia in improving the institutional, regulatory and technical conditions to reach 23 per cent renewable energy in the energy mix by 2025. It has three areas of intervention:
- Output 1: improve the regulatory framework to promote decentralised RE.
- Output 2: introduce decentralised RE technologies in PLN-internal planning processes as alternatives to conventional technologies.
- Output 3: promote the expansion of RE by introducing the previously unused concept of load shifting through private sector participation
In its second phase, the project focuses on two target regions, Sulawesi and East Nusa Tenggara (NTT) with good replication potential. REEP2 also supports PLN in power system planning and operation with high shares of variable renewables, while also providing related technical trainings in PLNs inhouse institute.
Last update: August 2022