GEF Market Transformation in the Energy Sector MTRE3

Project Dates: October 2016 - September 2024
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GEF  Market Transformation in the Energy Sector MTRE3
PROJECT OBJECTIVE

The MTRE3 project aims to assist Indonesia in designing and implementing effective climate change mitigation actions in the energy generation and end-use sectors. Its main goal is to support the achievement of Indonesia’s voluntary GHG reduction targets by: Enabling a sustainable market for renewable energy and energy efficiency. Addressing key barriers and establishing supportive policy and market conditions. Focusing on: Renewable-based electricity generation, Energy efficiency in commercial buildings, Market transformation, A system for monitoring (MRV), and raising awareness.

PROJECT DESCRIPTION

Indonesia’s primary energy supply is heavily reliant on fossil fuels—crude oil (47%), coal (27%), and natural gas (21%)—with renewables contributing less than 5%. Despite this, the country has significant renewable energy potential, including 29 GW of geothermal, 75 GW of hydropower, and 50 GW of bioenergy. To enhance long-term energy security, diversifying the energy mix is essential.

The energy sector accounts for about 512 million tCO2eq, or 32.2% of Indonesia’s total GHG emissions. To address this, the government has set targets under the 2015–2019 National Development Plan, including a 10–16% renewable energy share, 7.5 GW of installed capacity, and a 12.7% energy saving from BAU. It has also committed to reducing GHG emissions by 29% (or up to 41% with international support) by 2030, guided by the RAN-GRK and RAD-GRK action plans, which outline the country’s indicative Nationally Appropriate Mitigation Actions (NAMAs).

The MTRE3 project aims to support Indonesia’s efforts in designing and implementing climate mitigation actions in energy generation and end-use. Over five years, the project will help create an enabling environment for renewable energy and energy efficiency, focusing on RE-based electricity and energy-saving in commercial buildings. It consists of three components: (1) implementation of mitigation actions, (2) market transformation, and (3) development of an MRV system and awareness raising.



Region/Location

BUDGET

USD 8,311,329

IMPLEMENTING AGENCY OR AGENCIES

ADDITIONAL INFORMATION

For more information https//open.undp.org/projects/00086173


BUDGET

USD 8,311,329

IMPLEMENTING AGENCY OR AGENCIES