Strategic Exploration of Economic Mitigation through Renewable Energy

Project description

Title: Strategic Exploration of Economic Mitigation Potential through Renewables (ExploRE)
Commissioned by: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Indonesia
Lead executing agency: Directorate General of New, Renewable Energy, and Energy Conservation (DG NREEC), Ministry of Energy and Mineral Resources, Republic of Indonesia
Overall term: 2018 to 2021

Context

Indonesia has committed itself to achieving specific climate targets following the COP 21 Paris Agreement in 2015. Here, under the Nationally Determined Contributions (NDCs), Indonesia aims to reduce greenhouse gas emissions by 29 per cent by 2030, or even 41 per cent with international support. Under these NDCs, the energy sector in itself is expected to contribute to reducing 314 million tonnes of CO2. As an effort towards the goal, stakeholders in Indonesia are currently working on the deployment strategy of renewable energy technology, both from a technical and economic point of view. 

Objective

The programme’s coherence and interministerial cooperation in the energy, climate and finance sectors are strengthened. 

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Approach

The Strategic Exploration of Economic Mitigation Potential through Renewables (ExploRE) project bases its strategic approach on the study “Fundamentals for a Successful Renewable Energy (RE) Deployment for Indonesia” commissioned under ExploRE’s predecessor project,  “Promotion of Least-cost Renewables in Indonesia” (LCORE-INDO), which ran from 2012 to 2018. ExploRE works through studies and innovative pilot projects, capacity building measures and stakeholder engagement and applies them at four different output levels.

 ExploRE’s Main Outputs:

1.    RE deployment strategy based on a coordinated energy, climate and development policy 
2.    Political instruments and financing environment for improving framework conditions to attract private sector investment
3.    Institution building to empower decision makers to assess RE projects from technical and economic points of view
4.    Innovation through technology and business models that contribute to achieving Indonesia’s climate goals 

Cooperation opportunities and synergy options for each actor such as government stakeholders, financial institutions and the private sector are identified and addressed together at each level. Activities in the various outputs combine RE options, their emission reduction potential, and the country’s climate goals. These activities provide all target groups with equivalent experience and necessary data to make planning and strategic approaches to achieve Indonesia’s climate goals.

In implementing its activities, ExploRE engages with related government ministries and agencies, the private sector, and international organisations to create synergies between key actors.

  • Government: Ministry of Energy and Mineral Resources, Ministry of National Development Planning, Fiscal Policy Agency (BKF – Ministry of Finance) and Financial Service Authority (OJK)
  • International organisations: SIA/GIB, DBFZ, ILK
  • National and International Universities, State Electricity Company (PLN) and private sectors.
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