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The U.S. Trade and Development Agency (USTDA) signed a grant agreement with Indonesian national utility PT Perusahaan Listrik Negara (PLN) for a feasibility study to support of the development of two cross-border power interconnections between Indonesia and Malaysia. The project, which advances a key power sector objective for the Association of Southeast Asian Nations (ASEAN), will facilitate efficient resource sharing to help meet growing energy demands, enhance energy security, and implement policies for clean energy and climate protection goals in both countries.
Sustainable Energy for Remote Indonesian Grids (SERIG) is a U.S. Department of Energy (DOE) funded initiative to support Indonesia’s efforts to develop clean energy and increase access to electricity in remote locations throughout the country.
The U.S. Trade and Development Agency is funding a feasibility study to support MRT Jakarta in examining the technical and economic viability of installing solar panels on rooftops across MRT Jakarta’s rail system, accessing power from renewable energy power plants in Indonesia, and implementing energy efficiency and storage projects that would reduce MRT Jakarta’s overall electricity demand
To increase access to sustainable and lower-cost electricity in Maluku and Nusa Tenggara regions, and strengthen the operational cap acity of the electric utility
The TA will bring greater collaboration and focus among ADB operations divisions to attend to this unmet need of clean and legal energy access in urban poor areas. It will assist selected DMCs to identify, design and develop projects to address the unmet energy needs of the urban poor and prepare for projects and programs for replication and scaling up using ADB or other sources. It will also review ADB's pipeline of projects in the energy and urban sectors and assist in developing components for energy access in urban informal settlements. Inputs will also be provided to ADB's low cost housing projects where energy efficient measures can be integrated. The main impact of this Project will be the achievement of the SE4ALL targets in Asia and the Pacific. The specific outcome of this Project will be the increased capacity and investment readiness of urban energy access projects.
ADB's first result-based-loan (RBL) of $600 million.
The proposed Sumatra Power Grid Strengthening Program will take a results-based lending (RBL) programmatic approach in consultation with PLN and government over the fiveyear RPJMN period with a series of programs anchored to PLN’s RUPTL 2015–2024. This will ensure a long-term continuous engagement for the strengthening of the Sumatra power grid and ensuring reliable and uninterrupted provision of electricity. The RBL modality is appropriate, given (i) ADB’s long-term assistance to PLN in financing generation, transmission and distribution; (ii) its capacity for implementation; (iii) the alignment of the RBL with the national planning frameworks RPJMN and RUPTL; (iv) PLN and the government’s strong ownership of the 35 GW program; (v) the government’s shift to direct lending to state-owned enterprises backed by a government guarantee, in order to increase efficiency and simplify the project approval process; (vi) lower transaction costs associated with program implementation; and (vii) the potential to stimulate cofinancing and donor harmonization with other development partners. The program is included in the draft Country Operations Business Plan 2015–2017 and complements the proposed Sustainable and Inclusive Energy Program Subprogram 1 policybased loan which will promote a more inclusive and sustainable energy sector in Indonesia with targets for renewable energy and energy efficiency.
The proposed RBL program will enhance sustainable, equitable, and reliable access to electricity for the population in nine provinces. It is in the ADB’s Country Operations Business Plan 2019–2021 and aligns with the Country Partnership Strategy 2016−2019. 13 The RBL will finance a slice of the broader program in the Electric Power Supply Business Plan (RUPTL) 2018–2027 of the State Electricity Corporation (Perusahaan Listrik Negara or PLN). PLN has a financing gap for power delivery, including community-level renewable energy development, for which it is seeking ADB support.
program aims to support the development of electricity distribution networks to connect businesses and households and to enhance the quality of life in Eastern Indonesia by the sustainable use of electricity as a key driver of increased economic activity. The program will complement a proposed sector loan for small- to mid-sized natural gas-fired power stations to deliver more sustainable energy services to communities across Eastern Indonesia. Natural gas is a much cleaner fuel compared to diesel and the quick-responding nature of gas-fired engines and turbines make them a good match for intermittent renewable energy sources such as solar and wind. It is an appropriate transition fuel to move towards a low-carbon energy system. The two loans will help enhance access to sustainable energy services and contribute to climate change mitigation.
The overall investment needs for the government's generation, transmission, and distribution program are $83.5 billion of which $43.5 billion is to come from the private sector (independent power producers) and the balance of $40 billion from the State Electricity Corporation (Perusahaan Listrik Negara or PLN). The government and PLN will not be able to meet the investment needs on their own. PLN has an estimated funding gap of $30.3 billion which will have to be borne by other financing sources including from development partners. In Eastern Indonesia where there are many isolated grids, PLN is already using its own resources to establish 70 kilovolt (kV) and 150 kV backbone transmission systems while seeking support from ADB and other partners to strengthen and expand local distribution networks.
TA Subproject 2 aims to support ADB's developing member countries' objective to introduce high-level technology solutions to energy-related development challenges.
There are three concrete challenges which TA Subproject 2 aims to find new solutions for: (i) increasing clean energy use for heating and cooling, (ii) advancing efficient renewable energy based microgrids, and (iii) efficiently improving energy demand management. To this end, TA Subproject 2 will support achieving economic development while meeting nationally determined contributions pledged under the Paris Agreement.
USAID SINAR builds upon the longstanding commitment and partnership between the U.S. Government and the Government of Indonesia in climate change mitigation in the energy sector. Through SINAR, USAID will help national and subnational governments, state-owned energy utilities, businesses, financial institutions (such as banks), universities, and other key players to :
Collectively, these efforts will help Indonesia meet its ambitious renewable energy and energy efficiency targets while driving energy transformation that reduces greenhouse gas emissions. USAID SINAR works at the national level, while simultaneously engaging local governments in selected provinces to align national and sub-national plans and programs.