Renewable Energy Convention June 4-5, 2014

SUPPORTING RENEWABLE ENERGY & ENERGY
CONSERVATION IN INDONESIA
Anh Pham
Senior Energy Specialist
Renewable Energy Convention June 4-5, 2014
Introduction
WB in Renewable Energy and Energy Efficiency
Trend in Renewable Energy Lending

Technical Assistance & Policy Advice
Investment Lending
Strategic priorities for EAP energy practice
Indonesia
Key Issues and Challenges

Country Engagement Program
Technical Assistance & Policy Advice
Investment Lending
WB: Renewable Energy Lending
Technical Assistance and Policy Advice
China 1997 - 2009: scaling up wind energy: market support

mechanisms (including feed in tariff and bidding systems); support
for renewable energy law (passed 2006); technology improvement
support for manufacturers; education and training;
Vietnam 2010: small hydro: development of an avoided cost tariff
and associated regulations to allow small hydro up to 30MW to sell
to grid; integration of renewables into market reforms.
Multiple countries 1999 onwards (China, Croatia, Vietnam);
development of methodologies to determine economic levels of
grid connected renewables
Global Initiatives
Global Geothermal Development Plan (2014, including Indonesia)

Renewable Energy Resource Mapping (including Indonesia since 2013)
City Energy Efficiency Transformation Initiative
Investment Lending
Large hydro: Nam Theun 2, Lao PDR (1,070MW, $1,450 million of which
WB $42.5 million); Trung Son, Vietnam (260MW, $412 million of which
WB $330 million); Tarbela IV (1,450MW, $914 million of which WB $840
million)
Wind: Pingtan, China (100MW, $106 million of which WB $66 million);
Turkey Renewable Energy Integration ($475 million of which WB $300
million)
Biomass: Jiangsu, China (25MW, $35 million of which WB $20 million);
Solar thermal: Kureimat, Egypt (30MW solar, $328 million of which WB
$50 million); Ain Beni Mathar, Morocco (30MW Solar, $527 million of
which WB $43 million)
PV off grid: China Western Provinces (400,000 households, WB $27
million); Bangladesh (2 million households, WB $155 million)
Energy Efficiency Bosnia ($32 million, of which WB $32 million);
India Partial Risk Sharing Facility, Super Energy Efficiency Equipment
(about $500 million of which WB $103 million)
Strategic Priorities for EAP Energy

Focal areas
Turning strategy into action
Improving energy
efficiency
Institutional capacity building and policy advice

Introducing new financing mechanisms and market-based
approaches including trade in energy saving certificates
Energy efficient cities and green infrastructure
Scaling up
renewable energy
Policy and regulatory framework (feed-in-tariff)

Resource assessment and pre-investment activities
Financing RE (hydropower, wind, geothermal, solar PV)
Supporting T&D projects, regional integration and trade
Increasing access
to modern energy
Capacity building and institutional development

Grid and off-grid rural electrification programs
Access to clean and efficient cooking fuels and facilities
Knowledge sharing, regional initiatives and partnerships
New energy
solutions
Market Reforms
Regulatory framework for advanced energy solutions

IGCC/CCS, energy storage, electric vehicles, smart grids
Low-carbon energy solutions, conventional and unconventional gas
Stable and transparent regulatory regime for PPP
Cost-reflective tariff system and well targeted subsidies for poor
and vulnerable consumers
Gradual introduction of environmental externalities in the energy
pricing
Indonesia
Context: Key Issues and Challenges
End Extreme Poverty: Increase access to modern energy to combat poverty
Improve Shared Prosperity: Support reliable, adequate and a sustainable electricity service to fuel inclusive
economic growth
Challenges
Over 70 million people lack access to reliable electricity in Indonesia. This is half of those without access in East Asia.
Every second household in Indonesia still depends on solid fuels i.e. wood and bio-mass for cooking.
The demand for power doubled in the last 7 years, requiring US$ 10 billion annually in new investments.
Energy subsidies account for a quarter of Central Government expenditure.
Coal is projected to account for 60% of the fuel used for power generation in 2025. This has environment costs.
Implementation capacity at all levels. Lack of coordination across GoI and between central & local
Opportunities
Transition from existing to new Government: Interests in long term development strategy
Government target of expanding rural electrification to 90% by 2020
Indonesia has significant geothermal, hydropower, gas and biomass energy potential.
Government is committed to scale-up renewable energy to 17% of the energy mix by 2025.
Government committed to improve sector efficiency and better target the energy subsidy.
Indonesia
Energy Sector- Engagement Pillars

Low Carbon Sustainable Energy
Infrastructure
Increasing Access to
Modern Energy
Improving
Energy Efficiency
Pipelines SIL
Mattenggeng Pumped Storage ($500mil,
FY16)
Poko Hydro ($360 mil, FY16)
Geothermal II ($200 mil, tbc)
On-going SIL
-Geothermal ($300 mil, FY12)
- UCPS ($640 mil, FY11)
AAA & Non lending
Energy Subsidy Reform
NZ Grant Geothermal Capacity Building
ESMAP TF -PPP options for hydro
generation (FY12-13)
ASTAE for Poko Preparation
ASTAE for Geothermal (support
investment)
ESMAP Benefit Sharing for Hydro (FY14)
Gas Sector Regulations
Pipelines SIL
1000 Islands (REEP) (FY14)
On-going SIL
Transmission I ($225 mil, FY10)
Transmission II ($325 mil,
FY13)
AAA & Non lending
Geospatial Mapping and Least
Cost Electrification Delivery
Renewable Energy Resource
Mapping
Scaling up Access to Clean &
Efficient Cook Stove
Pipelines
GEF EE for Large Industrial
Enterprises (FY15)
AAA & Non lending
TF Smart Grid
CCS (FY14)
Green Growth for Energy
Sector
Indonesia
Technical Assistance and Policy Advice
Support MEMR to revise Pricing Policy for Geothermal

Development
Capacity Building for Geothermal Investment (NZ Grant to PGE)
Public Private Sector Participation for Hydro Generation
Benefit Sharing for Hydro Power Investments
Renewable Energy Resource Mapping and Geospatial Planning
Capacity Building for Smart Grid Planning and Investment
Support to Introduction of Performance Based Regulation to PLN
Pre-Investment
Support Geothermal Investment II

Capacity Building for Integrated Basin Planning, Sediment Management and
Preparation of Poko Hydropower Project
Indonesia
Investment Lending- IBRD
Under implementation
Geothermal Clean Energy Investment Project. IBRD: US$ 175 million; CTF
$125 million
Upper Cisokan Pumped Storage Hydro Electricity Project IBRD: US$ 640
million
Under Preparation FY 15-17
Renewable Energy for Rural Electrification; IBRD $150 million
Matenggeng Pumped Storage Hydro Electricity Project; IBRD: US$ 500
million
Poko Hydro Power Project; IBRD: US$ 360 million
GEF Grant for Large Enterprises Energy Efficiency Project; GEF: $5.48 mil
Terima Kasih!
China
China
Past & Current Portfolio
Projects at a glance:
IBRD, IDA, GEF & CDM
$10.4 b* since 1983

$1.6 b since 2004, 92% green
$1.2 b active portfolio, 20 projects
(originated since 2008)
Largest mobilizer of GEF mitigation

$289.81 m since beginning ,o/w
56% in last decade
37% of active portfolio low

carbon cities
* Excludes additional $978 m for industrial development and
other mining mapped to energy and mining 1983-1997

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SUPPORTING RENEWABLE ENERGY & ENERGY

Renewable Energy Convention June 4-5, 2014

Trend in Renewable Energy Lending

Key Issues and Challenges

WB: Renewable Energy Lending

Technical Assistance and Policy Advice

China 1997 - 2009: scaling up wind energy: market support

Global Geothermal Development Plan (2014, including Indonesia)

Strategic Priorities for EAP Energy

Turning strategy into action

Institutional capacity building and policy advice

Policy and regulatory framework (feed-in-tariff)

Capacity building and institutional development

Regulatory framework for advanced energy solutions

End Extreme Poverty: Increase access to modern energy to combat poverty

Energy subsidies account for a quarter of Central Government expenditure.

Government target of expanding rural electrification to 90% by 2020

Energy Sector- Engagement Pillars

Technical Assistance and Policy Advice

Support MEMR to revise Pricing Policy for Geothermal

Support Geothermal Investment II

Investment Lending- IBRD

$10.4 b* since 1983

Largest mobilizer of GEF mitigation

37% of active portfolio low

* Excludes additional $978 m for industrial development and

other mining mapped to energy and mining 1983-1997

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