Indonesia Clean Energy Development Project
Indonesia is among the world’s top-ten natural gas and coal producers, and has abundant solar, wind, hydro, and geothermal resources, with a commitment to move toward a low-carbon 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 began in 2011 and runs through 2020. Now in its second phase, ICED is the centerpiece of USAID and Indonesia’s development support in the energy sector.
By 2030, the government has committed to a 29 percent reduction in the country’s greenhouse gas emissions relative to “business as usual” and up to 41 percent with international assistance, and by 2025, plans for 23 percent of final energy to come from renewable energy.
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
In the past eight years, ICED provided technical assistance to a pipeline of 271 clean energy projects with a combined generating capacity of 3,025 megawatts (MW). As a result of ICED’s assistance, Indonesia has reduced 4.8 million metric tons of CO2e emissions (37.3 million metric tons by 2030); proposed, adopted, and/or implemented 35 clean energy laws, policies or regulations; installed 220 MW of renewable energy capacity and helped 667 MW achieve financial close; mobilized over $1.7 billion in clean energy investments; and brought electricity fueled by clean energy to over 1.6 million people.
A major pillar of ICED is providing policy and regulatory assistance to Indonesia’s national and provincial governments to create an enabling environment conducive to clean energy—renewable energy and energy efficiency—development. Tetra Tech is assisting 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 providing technical and economic input to the first national rooftop solar PV regulation; and creating a framework for achieving Sustainable Development Goal #7 of clean and affordable energy.
The second major pillar of ICED’s assistance is facilitating public and private sector investment in clean energy development. To bring much needed capital to the renewable energy sector, ICED advises a wide network of public and private actors, including project developers, banks and financial institutions, and PLN. ICED’s services include providing independent reviews of project feasibility studies, detailed engineering designs, equipment specifications, and construction practices; conducting energy efficiency and renewable energy technology demonstrations; analyzing the impacts of variable solar PV and wind power on transmission and distribution networks; and attracting debt and equity financing for on- and off-grid renewable energy projects.
Capacity building is an integral part of ICED. To date, nearly 9,500 public and private sector professionals have been trained in such areas as geographic information system mapping, modeling, energy planning, new PLN requirements, and financing clean energy projects. Through the support Tetra Tech is providing, Indonesia is being set on a path to a clean energy future and is moving effectively toward its goal of meeting ambitious low-emissions and renewable energy targets.