Indonesia Clean Energy Development Project
Indonesia has abundant solar, wind, hydro, and geothermal resources, and is committed to a low-carbon energy future.
Tetra Tech was contracted by the U.S. Agency for International Development (USAID) to help Indonesia meet its ambitious low-emissions and renewable energy targets through the Indonesia Clean Energy Development (ICED) Project, which ran in two phases from 2011 through 2020.
The Government of Indonesia is committed to a 29 percent reduction in the country’s greenhouse gas emissions by 2030 (relative to business as usual) and up to 41 percent with international assistance. By 2025, Indonesia aims for 23 percent of energy production to come from renewable resources.
We recognize the valuable assistance to PLN that has been provided by Tetra Tech under the ICED project and look forward to continued cooperation under ICED-II.Nasri Sabayang, Director, Indonesia National Utility Company (PLN)
Thank you very much for the work of the USAID ICED II program. The contribution from the program goes on behind the scenes and out of the spotlight. But from a commercial perspective ICED II makes a crucial contribution to the development of projects.Andrew Billard, Commercial Attaché, Commercial Service, Department of Commerce, U.S. Embassy Jakarta
Tetra Tech’s assistance through the ICED programs helped Indonesia reduce 6.9 million metric tons of CO2e emissions (37.3 million metric tons projected by 2030); proposed, adopted, and/or implemented 75 clean energy laws, policies or regulations; mobilized over $1.6 billion in clean energy investments; and brought electricity fueled by clean energy to over 3.3 million people. With ICED support, nearly 450 megawatts (MW) of renewable energy capacity began commercial operations, and staff at 34 institutions improved their capacity to mitigate climate change and manage clean energy.
One of ICED’s major pillars was providing policy and regulatory assistance to Indonesia’s national and provincial governments to create an enabling environment conducive to enewable energy and energy efficiency development. Tetra Tech assisted provinces in preparing their first long-term energy plans; developing and revising their plans for reducing greenhouse gas emissions from the energy sector; mapping village electricity access and the least-cost means of meeting unserved and underserved households; developing guidelines for interconnecting distributed renewable energy generation (<10 MW) to the national utility’s (PLN) medium-voltage distribution system; and creating a framework for achieving Sustainable Development Goal #7 of clean and affordable energy. Tetra Tech’s ICED project advisors also provided technical and economic input to Indonesia’s first national rooftop solar PV regulation.
The second major pillar was facilitating public and private sector investment in clean energy development. To bring much needed capital to the renewable energy sector, ICED advised a wide network of public and private actors, including project developers, banks and financial institutions, the national electricity utility, and PLN. ICED provided independent reviews of project feasibility studies, detailed engineering designs, equipment specifications, and construction practices. The project conducted energy efficiency and renewable energy technology demonstrations; analyzed the impacts of variable solar PV and wind power on transmission and distribution networks; and helped attract debt and equity financing for on- and off-grid renewable energy projects.
Capacity-building was another integral part of ICED. TThe project trained nearly 9,500 public and private sector professionals in such areas as geographic information system mapping, modeling, energy planning, new PLN requirements, and financing clean energy projects. Through Tetra Tech’s support, Indonesia is now on a better path to a clean energy future and is moving toward its ambitious low-emissions and renewable energy goals.