INDONESIA CLEAN ENERGY DEVELOPMENT II ... - pdf.usaid.gov

FY 2016 ANNUAL REPORT

July 2008 1

INDONESIA CLEAN ENERGY DEVELOPMENT II (ICED II) PROJECT

FY 2019 Annual Report October 1, 2018 – September 30, 2019 Contract No. AID-OAA-1-13-00019 Task Order AID-497-TO-15-00002

Submission Date: October 15, 2019 Revision 2: June 2, 2020 REDACTED Contract No.: AID-OAA-I-13-00019 Task Order: AID-497-TO-15-00002 Activity Start and End Dates: May 2015 to May 2020 Contracting Officer’s Representative: Retno Setianingsih Submitted by:

Tetra Tech ES, Inc. USAID Indonesia Clean Energy Development Project II Menara Jamsostek, North Tower, 14th Floor, Jl. Gatot Subroto No.38,

Jakarta Selatan 12710 Indonesia Tel. +62-21-5296-2325 | Fax +62-21-5296-2326 www.iced.or.id

DISCLAIMER This document is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Tetra Tech ES Inc. and do not necessarily reflect the views of USAID or the United States Government.

FY 2019 ANNUAL REPORT OCTOBER 1, 2018-SEPTEMBER 30, 2019

Indonesia Clean Energy Development II (ICED II) Project

Revision 2: June 2, 2020 (REDACTED)

Prepared for: Office of Environment USAID/Indonesia

Prepared by: Tetra Tech ES, Inc. Tetra Tech ES, Inc.Menara Jamsostek, North Tower, 14th Floor 1320 N. Courthouse Rd. Ste. 600Jalan Gatot Subroto No. 38 Arlington, VA 22201Jakarta Selatan 12710 Indonesia USATel. +62-21-5296-2325 Tel. +1-703-387-2100Fax +62-21-5296-2326 Fax +1-703-243-0953www.iced.or.id www.TetraTech.com

DISCLAIMER

This document is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Tetra Tech ES Inc. and do not necessarily reflect the views of USAID or the United States Government.

ANNUAL PROGRESS REPORT OCTOBER 2018 – SEPTEMBER 2019

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ACRONYMS AC Air conditioning ADB Asian Development Bank ADS Automatic dispatching system AGC Automatic generator control ASHRAE American Society of Heating, Refrigerating and Air-Conditioning Bappeda Badan Perencanaan Pembangunan Daerah/ Local Development Planning Agency

(at the provincial and district levels). Bappenas Badan Perencanaan Pembangunan Nasional/ National Development Planning

Agency BAU Business as usual BCA Bank Central Asia BCSF Bali Center for Sustainable Finance Birocan Biro Perencanaan (di bawah Kementerian ESDM/ Planning Bureau (under MEMR)) Biro KLIK Communication, Public Information Services, and Cooperation Bureau (under

MEMR)/ Biro Komunikasi, Layanan Informasi Publik, dan Kerja Sama (di bawah Kementerian ESDM)

BOOT Build-own-operate-transfer BPP Regional electricity generating cost BPPT Badan Pengkajian dan Penerapan Teknologi/Agency for the Assessment

and Application of Technology BPSDM Human Resource Capacity Development Agency/ Badan Pengembangan Sumber

Daya Manusia CAISO California Independent System Operator CDCS Country Development Cooperation Strategy CETIF Clean Energy Technical and Innovation Fund CFPS II Canadian Climate Fund for the Private Sector in Asia II COD Commercial operating date COP Conference of the Parties DEN Dewan Energi Nasional/National Energy Council DJK Direktorat Jenderal Kelistrikan (di bawah Kementerian ESDM)/Directorate General

of Electricity DO Development Objective DPNP Banking Research and Regulation Department of OJK DPRD Dewan Perwakilan Rakyat Daerah/Regional Assembly DSDEMP Direktorat Sumber Daya Energi, Mineral dan Pertambangan (direktorat di bawah

Deputi Bidang Kemaritiman dan Sumber Daya Alam dari Bappenas /Directorate for Energy, Mineral, and Mining Resources (a directorate under Deputy for Maritime Affairs and Natural Resources of National Development Planning Agency)

EBT Energi Baru Terbarukan/New and Renewable Energy (a division within PLN)

EMR Energy and Mineral Resources (office in the provincial government) ESDM Energi dan Sumber Daya Mineral/Energy and Mineral Resources ESRA Environmental and Social Risk Analysis ESRI Energy Self-Reliance Index ESI Energy Security Index


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FGD Focus group discussion FS Feasibility study GCC Global climate change GGGI Global Green Growth Institute GHG Greenhouse gas GIS Geographic information system GIZ Gesellschaft für Internationale Zusammenarbeit/German Corporation for

International Cooperation) GOI Government of Indonesia GSE Gender self-efficacy ICED II USAID’s Indonesia Clean Energy Development Project II ICCTF Indonesia Climate Change Trust Fund IIEE Indonesian Institute of Energy Economics IIF Indonesia Infrastructure Finance IPP Independent power project/producer/Penyedia Listrik Swasta (PLS) IR Intermediate result KEN Kebijakan Energi Nasional/National Energy Policy KLHK Kementerian Lingkungan Hidup dan Kehutanan/Ministry of Environment and

Forestry KLHS Kajian Lingkungan Hidup Strategis/ Strategic Environment Assessment KMAJ Komite Manajemen Aturan Jaringan/Grid Code Management Committee LBNL Lawrence Berkeley National Laboratory LCD Low-carbon development LCOE Levelized cost of energy LEAP Long-Range Energy Alternatives Planning System model LKKP Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah / Government

Procurement of Goods and Services Agency LOP Life of project LPEM FEB UI Lembaga Penyelidikan Ekonomi dan Masyarakat Fakultas Ekonomi dan Bisnis

Universitas Indonesia/Institute for Economic and Social Research Faculty of Economics and Business University of Indonesia

LTSHE Lampu tenaga surya hemat energi/Low energy solar-powered lamps M&E Monitoring and evaluation M&V Measurement and Verification MEMR Kementerian Energi dan Sumber Daya Mineral/ Ministry of Energy and Mineral

Resources MEPS Minimum Energy Performance Standard MER Monitoring, evaluation and reporting MoU Memorandum of Understanding MRV MMI Measuring, Reporting and Verification for Mitigation Measures in Indonesia, a GIZ

project MTRE3 Market Transformation towards Renewable Energy and Energy Efficiency (a UNDP

project) MW Megawatt MWp Megawatt peak NAMA Nationally appropriate mitigation action NDC Nationally determined contribution NREL U.S. National Renewable Energy Laboratory NTB Nusa Tenggara Barat/West Nusa Tenggara


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NREEC New Renewable Energy and Energy Conservation/Energi Baru Terbarukan dan Konservasi Energi (EBTKE)

NTT Nusa Tenggara Timor/East Nusa Tenggara OJK Otoritas Jasa Keuangan /Indonesia’s Financial Services Authority PAGE Partnership for Action on Green Economy, a partnership of five UN agencies PerPres Presidential regulation PLN Perusahaan Listrik Negara/State Electricity Company PPA Power purchase agreement/Perjanjian jual beli listrik (PJBL) PPK Direktorat Pembinaan Pengusahaan Ketenagalistrikan/Directorate of Electricity

Business Development (under MEMR DG EBTKE) PPRK Perencanaan Pembangunan Rendah Karbon/Low Carbon Development Planning

(A Bappenas approach) PPRKD Perencanaan Pembangunan Rendah Karbon Daerah/Provincial Low Carbon

Development Planning (a Bappenas approach) PPSDM Pusat Pengembangan Sumber Daya Manusia/Center for Human Resource Capacity

Development P2B Java-Bali Distribution and Load Dispatch Center P2RUED Tim Pembinaan Penyusunan Rencana Umum Energi Daerah/Supervisory Team for

Regional Energy Plan Development PT SMI PT Sarana Multi Infrastruktur, a state-owned infrastructure financing company PV Photovoltaic RAD-GRK Rencana Aksi Daerah Gas Rumah Kaca/Local Action Plan for Low Emissions

Development RAN-GRK Rencana Aksi Nasional Gas Rumah Kaca/National Action Plan for Low Emissions

Development RED CLUWE Reducing the Carbon Intensity of Energy, Land Use and Waste, an input-output

based model REGP Renewable Energy Generation Plants Re-Pro List of Renewable Energy Projects RfQ Request for quotation RPJMD Rencana Pembangunan Jangka Menengah Daerah/Provincial Medium-Term

Development Plans RPJMN Rencana Pembangunan Jangka Menengah Nasional/National Medium-Term

Development Plan RPRK Rencana Pembangunan Rendah Karbon/Low Carbon Development Plan (the

document guiding the PPRK) RPRKD Rencana Pembangunan Rendah Karbon Daerah/Provincial Low Carbon

Development Plan (the document guiding the PPRKD at the provincial level) RUEA Aceh province’s draft RUED RUED Rencana Umum Energy Daerah/Regional Energy Plan RUEN Rencana Umum Energy Nasional /National Energy Plan RUKD Rencana Umum Kelistrikan Daerah/Regional Electricity Plan RUKN Rencana Umum Kelistrikan Nasional/National Electricity Plan RUPTL Rencana Umum Penyediaan Tenaga Listrik /PLN’s Power Supply Business Plan SDGs Sustainable Development Goals SNI Standar Nasional Indonesia/Indonesian National Standard ToR Terms of reference ToT Training of trainers UCED Unit commitment and economic dispatch


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UN United Nations USAID United States Agency for International Development USG United States Government VRE Variable renewable energy WRI World Resources Institute WTE Waste to energy


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TABLE OF CONTENTS

Acronyms ................................................................................................................... i

1. INTRODUCTION ..................................................................................................... 1

The ICED II Project in Brief ............................................................................................................................... 1 Geographic Coverage ....................................................................................................................................... 3 Framework for USAID ICED II Assistance to Government of Indonesia ........................................................... 4 Organization of this Report .............................................................................................................................. 5

2. SUMMARY OF KEY ACTIVITIES AND ACHIEVEMENTS ............................................. 6

ICED II Support to Clean Energy and Related Programs .................................................................................. 6 Greenhouse Gas Emissions Reduction in the Energy Sector ........................................................................ 8 Energy Planning .......................................................................................................................................... 10 Electricity Resource Planning, Procurement and Operations .................................................................... 12 Rural Electrification .................................................................................................................................... 16 Grid-Connected Renewable Energy Program ............................................................................................. 19 Sustainable Finance .................................................................................................................................... 22

ICED II Support to Clean Energy Projects ....................................................................................................... 24 Clean Energy Technology and Innovation Fund (CETIF) (Redacted) .............................................................. 27

3. ICED II Strategy and Progress toward Achieving Results ...................................... 28

Indicator 1: Greenhouse gas (GHG) Emissions, Estimated in Metric Tons of CO2 Equivalent, Reduced, Sequestered, or Avoided through Clean Energy Activities Supported by USG Assistance ........................ 29 Indicator 2: Amount of Investment Mobilized (in USD) for Clean Energy as Supported by USG Assistance .................................................................................................................................................................... 30 Indicator 3: Number of Beneficiaries with Improved Energy Services due to USG Assistances ............... 31 Indicator 4: Number of Institutions with Improved Capacity to Address Clean Energy Issues as Supported by USG Assistance ....................................................................................................................................... 32 Indicator 5: Number of Laws, Policies, Regulations or Standards Addressing Clean Energy Formally Proposed, Adopted, or Implemented as Supported by USG Assistance .................................................... 32 Indicator 6: Clean Energy Generation Capacity Installed or Rehabilitated as a Result of USG Assistance 33 Indicator 7: Proportion of Females Who Report Increased Self-Efficacy at the Conclusion of USG-Supported training/Programming .............................................................................................................. 33 Indicator 8: Clean Energy Generation Capacity Supported by USG Assistance that has Achieved Financial Closure ........................................................................................................................................................ 35 Indicator 9: Projected GHG Emissions Reduced or Avoided through 2030 from Adopted Laws, Policies, Regulations, or Technologies Related to Clean Energy as Supported by USG Assistance ......................... 35 Indicator 10: Number of People Trained in Clean Energy Supported by USG Assistance ......................... 36 Indicator 11: Expected Lifetime Energy Savings from Energy Efficiency or Energy Conservation as a Result of USG Assistance ............................................................................................................................ 36

4. Annexes .............................................................................................................. 38

Annex A. Performance Indicator Results against Targets .............................................................................. 38 Annex B. Reference Information for Performance Indicators and Results.................................................... 41 Annex C. ICED II Project Deliverables .................................................................................................... 48


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Annex D. ICED II External Events, FY 2019 ............................................................................................. 49 Annex E. ICED II Detailed Training Activities, FY 2019 .......................................................................... 50


1 INDONESIA CLEAN ENERGY DEVELOPMENT II www.iced.or.id

1. INTRODUCTION The ICED II Project in Brief The Indonesia Clean Energy Development II Project (ICED II) is a five-year program (May 2015–May 2020) funded by the U.S. Agency for International Development. ICED II is designed to assist the Government of Indonesia (GOI) in establishing an effective policy, regulatory, and incentive environment for low-emission growth in the energy sector, while simultaneously attracting public and private sector investment in clean energy development. In recognition of USAID/Indonesia’s increased emphasis on science, technology, and innovation, ICED II is also expected to support technological and human capacity advancements in the clean energy space. ICED II is viewed as a “follow on” project to ICED, which ended on February 17, 2015. ICED II gives special attention to the status of ICED interventions at the project’s end (as documented in the ICED final report), the changes that have occurred both within GOI partners and the clean energy market, re-engaging with ICED public and private sector partners, and positioning ICED II to take advantage of ICED’s momentum toward achieving ICED II’s objectives and target results. The overall goal of ICED II is to strengthen the foundation for a low-carbon energy system in Indonesia. Its components contribute to the GOI’s established targets for enhancing access/security within the sector, while concurrently supporting national efforts to curb greenhouse gas (GHG) emissions. ICED II is implemented through three parallel and complementary components: Component 1: Improve the enabling environment for rapid co-investment in clean energy Component 2: Accelerate the mobilization of private and public sector co-investment in

clean energy Component 3: Outreach on USAID and U.S. Government (USG) inter-agency activities in

Indonesia’s energy sector. ICED II also operates a Clean Energy Technology and Innovation Fund that is used to augment project interventions. The Innovation Fund is intended to be a flexible means, where necessary and/or useful to the project’s objectives, to encourage participation and/or collaboration of private sector and local entities toward the achievement of ICED II’s components and tasks. At its completion, ICED II must achieve the following high-level results:

1. At least 4.5 million tons of GHG emissions, estimated in metric tons of CO2e, reduced, sequestered, and/or avoided as a result of USG assistance

2. At least $800 million of investment mobilized from private and public sources for climate change mitigation as supported by USG assistance

3. At least an additional 5 million people with access to clean energy

4. At least 20 institutions with improved capacity to address climate change issues as a result of

USG assistance


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5. At least 20 laws, policies, strategies, plans, or regulations addressing climate change mitigation officially proposed, adopted, or implemented as a result of USG assistance.

In addition, ICED II has five component- (or task-) level objectives and targeted results. These are listed below. These results are described in more detail in the ICED II Monitoring and Evaluation (M&E) Plan. ICED II reports on 11 key performance indicators taken from the high-level results and targeted results (see Section 3).

Tasks Targeted Results

Increase Capacity for Low Emissions Energy Sector Planning and Implementation

At least 20 institutions with improved capacity to address climate change issues as a result of USG assistance

Within selected provinces, enhanced integration of RAD-GRK with RAN-GRK, RUEN/RUED, RUKD, RPJMD, Provincial/District/City Regional Spatial Management Plan (RTRWP/K), and associated strategic planning documents

Within selected provinces, preliminary RUEDs and RUKDs are developed that reflect integrated resource planning, are responsive to modelled energy demands for the region, and are aligned with the respective RAD-GRK

Improved capacity of institutions at the local level to operationalize and refine RAD-GRK plans based on sound quantitative data and analysis and synchronization of methodologies at the national and local levels; and to develop, operationalize and align RUEDs and RUKDs with local development priorities

Enhanced participation of district and municipal institutions in the RAD-GRK, RUED and RUKD planning and implementation processes.

Policy and Regulatory Reform Support for Clean Energy Project Development

At least 20 laws, policies, strategies, plans, or regulations addressing climate change mitigation officially proposed, adopted, or implemented as a result of USG assistance

Streamlined reform of existing policies and regulations relevant to clean energy growth

Adoption of effective fiscal and non-fiscal incentives for increased investment in different types of small- to medium-scale renewable energy technologies

Establishment of a regulatory framework and standardized feed-in tariffs for the development of renewable energy projects with generating capacities larger than 10 MW

Public outreach strategies developed at the national/subnational level to effectively communicate the impact of policy/regulatory reform.

Advanced Project Development and Investment Promotion

Facilitated installation of at least 400 MW of clean energy generation capacity

Adoption of standard business practices for clean energy development, integration and related procedures with PLN

Established funding and implementation frameworks for mitigation actions in the clean energy sector at the subnational level

Improved business practices of project design and feasibility assessment in the clean energy market to reduce risk and increase the likelihood of attracting investment.


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Tasks Targeted Results

Increased Local Capacity of Science, Technology, Innovation and Human Resources for Clean Energy Growth

Documented assessment of human resources needs of relevant stakeholders and action plan for designing and delivering associated technical assistance to enhance the capacity of local organizations in providing relevant services and trainings on clean energy aspects.

Pilot modules for study and practical training in at least five institutions for at least five different technologies (hydro, biomass, biogas, municipal waste, solar PV and wind power).

Piloting of at least five renewable energy/energy conservation innovations with a roadmap for scaling-up and/or rapid replication.

Outreach on USAID and USG Inter-Agency Activities in Indonesia’s Energy Sector

Regular updates of USAID’s efforts in the energy sector disseminated to interested stakeholders/media – highlighting their integration with GOI initiatives and other donor/lender activities

Annual workshops, forums, and other public outreach campaigns to inform local stakeholders about GOI and U.S. Government collaborative efforts.

ICED II provides a combination of short- and long-term technical assistance to the Ministry of Energy and Mineral Resources (MEMR), the State Electricity Company (PLN), the National Planning Agency (Bappenas), the Financial Services Authority (OJK), selected provincial and regency (kabupaten) governments, other sectoral ministries and authorities, and the private sector. Geographic Coverage USAID/Indonesia has identified 14 focus provinces where it will provide cross-sectoral development support that will be complemented with institutional, planning and coordination assistance delivered at the central level to GOI stakeholders in Jakarta. The 14 focus provinces are: Aceh, North Sumatra, West Java, Central Java, East Java, West Nusa Tenggara, West Kalimantan, Central Kalimantan, South Sulawesi, Southeast Sulawesi, North Maluku, Maluku, West Papua, and Papua. ICED II has selected five priority areas (provinces) from USAID’s 14 focus provinces where ICED II will concentrate its regional energy planning support: Aceh, East Java, North Sumatra, Nusa Tenggara Barat (NTB) and South Sulawesi. Aceh, North Sumatra, and South Sulawesi were identified in the ICED II contract’s scope of work, while East Java and NTB were selected based on the following criteria:

• Indicative clean energy project development (investment and installed capacity) opportunities

• GHG emission reduction potentials in the energy sector over the projected baselines in the RAD-GRKs (local action plans for low-emissions development)

• Number of households and persons without access to electricity • Indicative progressive commitment from subnational (provincial, municipal/regency)

governments to take steps in implementing GHG mitigation action plans and accelerating the development of clean energy

• Relative ease (e.g., logistics) in supporting field work from the ICED II Jakarta office. ICED II’s geographic coverage strategy (Figure 1) combines ongoing support to national-level partners within the ICED II priority provinces and USAID focus provinces, and other locations across Indonesia. First, the project concentrates support in the five ICED II priority provinces where it engages in subnational energy and GHG mitigation planning and policies, and helps initiate new


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clean energy projects and programs. Second, ICED II responds to opportunities to support public and private sector partners based in the 14 USAID focus provinces where there is a potential to contribute to ICED II’s high-level results. Third, ICED II takes a portfolio approach to support PLN, MEMR, national banks and financial institutions and national developers, supporting projects in its national-level partners’ portfolios, even if they are outside the USAID focus provinces. Fourth, ICED II continues to support projects throughout Indonesia from the ICED Project’s (2015-2010) clean energy project pipeline that have high potential to contribute to the ICED II high-level results (e.g., installed generating capacity, reduced GHGs, leveraged investment, persons with access to clean energy).

Figure 1: ICED II Geographic Coverage Strategy

Framework for USAID ICED II Assistance to the Government of Indonesia USAID and the GOI finalized a five-year Country Development Cooperation Strategy (CDCS) that presents the development priorities of both parties from 2014 through 2018. It serves as a guide for the design of interventions and allocation of resources across critical technical sectors. ICED II supports USAID’s Development Objective 3 (DO3) of the 2014-2018 CDCS: “Global Development Priorities of Mutual Interest Advanced.” The ICED II project’s objectives and associated tasks are linked to DO3 Intermediate Result (IR) 3.3: “Climate Change Mitigation and Resilience to Support a Green Economy Strengthened,” and Sub-IR 3.3.1: “Foundation for Low Carbon Energy System Strengthened.” ICED II supported the establishment of the USAID-GOI framework for clean energy assistance. It includes 1) the GOI’s administrative agreement with Bappenas and technical agreement with MEMR, which acknowledge ICED II’s eligibility to obtain formal support from the GOI and 2) USAID memoranda of understanding with MEMR and PLN outlining the agreed upon areas of technical cooperation.

Other Provinces with ICED Project or Project from National Partners

14 USAID Focus Provinces

5 ICED II Priority Provinces (Aceh, East Java, North Sumatra, West Nusa Tenggara, South Sulawesi)

Jakarta-based Partners with National Portfolios

ICED II supports projects in its national-level partners’ portfolios, even if they are outside USAID priority provinces.

ICED II provides cross-sectoral development support that is complemented with institutional, planning and coordination assistance delivered at the central level to Government of Indonesia’s stakeholders in Jakarta

ICED II continues supporting renewable energy projects in its Clean Energy Project Pipeline as well as support the efforts of ICED II partners that have a high probability of contributing to ICED II lt


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Organization of this Report Section 2 describes ICED II’s support at two distinct levels: 1) government clean energy and related programs and 2) developers’ clean energy projects. For both, we provide a brief description of the program and its status at the beginning and end of the reporting period, and explanations of the ICED II support activities and related ICED II achievements. Section 3 summarizes ICED II’s strategy for achieving its target results and the progress it has made to date.


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2. SUMMARY OF KEY ACTIVITIES AND ACHIEVEMENTS

ICED II Support to Clean Energy and Related Programs To help improve the enabling environment for rapid co-investment in clean energy, ICED II continued its assistance to several national and subnational programs designed, directly or indirectly, to accelerate the development of clean energy. These ranged from programs to support specific renewable energy and energy efficiency projects, to programs that address the energy sector more broadly but have an implied objective of increasing the utilization of clean energy resources. To meet this objective, we supported our principal partners – MEMR, Bappenas and PLN – as well as other government bodies such as the Financial Services Authority. Similarly, at the subnational level, we targeted assistance to provincial planning agencies (bappeda) and energy offices and PLN regions (wilayah). In addition to the energy and related planning processes, ICED II supported institutions in the implementation of critical programs. Programmatic assistance typically involved ICED II interventions at such stages as program design, policy formulation, policy socialization,1 guidance and capacity building in program implementation, and monitoring and evaluation. Two important objectives of ICED II’s programmatic technical assistance are alignment and coordination. ICED II supported the alignment of the major national planning processes (Table 1) that must respond to the National Energy Policy (Kebijakan Energi Nasional or KEN) as well as targets set in climate change policies to facilitate consistency in data and modeling, ensure the sustainability of program results, and institutionalize change. We support the principal national and provincial institutions in fulfilling their mandates while increasing transparency, improving data availability, enhancing modeling, forecasting and other analytical tools, and enabling verifiable monitoring, evaluation and reporting. ICED II explicitly recognizes the responsibility of subnational governments (mainly provinces) in developing energy, electricity and greenhouse gas emission mitigation plans that reflect their specific renewable resources and economic, social and geographic characteristics. To improve planning processes, ICED II stresses the importance of evidence-based decision making involving uniform data sets for all provinces, modeling tools such as Long-range Energy Alternatives Planning (LEAP) and geographic information systems (GIS) for analysis and mapping. Improving the capacity of relevant provincial government offices in planning and program implementation has become increasingly recognized as a key to achieving national development goals and objectives. In July 2017, President Joko “Jokowi” Widodo issued Presidential Regulation (Perpres) No. 59/2017 on achieving the United Nations’ Sustainable Development Goals (SDGs), which set out directives on the implementation of the SDGs and targets to be achieved by 2030 at the national level. The SDGs include two relevant goals to the ICED II program: 1) Goal #7 - Ensure access to affordable, reliable, sustainable and modern energy for all, and 2) Goal #13 - Take urgent action to combat climate change and its impacts. The regulation mandates that Bappenas coordinate all stakeholders and oversee the achievement of the SDGs. Subsequent to the Presidential Regulation, Bappenas issued a

1 Socialization is the stage following the issuance of a policy or regulation designed to inform stakeholders and seek clarification in its implementation.


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regulation on the implementation of the SDGs in 2018.2 It should be noted that Bappenas has begun the process of drafting the National Medium-Term Development Plan (RPJMN) 2020-2024 and that MEMR has begun drafting an update to the National Electricity Plan (RUKN). The remainder of this section describes the status of the main program areas where ICED II is involved, as well as the assistance provided during the period October 1, 2017, to September 30, 2018.

Table 1. Planning Processes Affecting the Development of Clean Energy Planning Process

RPJMN/ RPJMD

RAN-/ RAD-GRK

RAN-/ RAD SDGs

RUEN/ RUED

RUKN/ RUKD

RUPTL

Plan National/ Regional Medium-Term Development Plan

National/ Regional Action Plan for Greenhouse Gas Emission Reduction

National/ Regional Action Plan for Sustainable Development Goals

National/ Regional Energy Plan

National/ Regional Electricity Plan

Electricity Power Supply Business Plan

Responsible Agency

Bappenas Bappenas Bappenas MEMR MEMR PLN

Planning Timeframe 2015-2019 and

2020-2024

2015-2034 2016-2030 2015-2050 2015-2034 2018-2027

Input from Province/ Region

Provincial energy data

Provincial GHG emissions reduction action plans

Provincial plan on sustainable development

Input on energy demand

Planning on regional electricity

Regional office investment/ electrification

National Outputs from ICED Assistance

Energy demand growth and intensity

Renewable energy projects/ energy efficiency

Renewable energy projects; electricity access

Renewable energy and energy efficiency potential

Renewable energy power supply; electricity access

PLN and independent power producer renewable energy power projects

2 Minister of National Development Planning Regulation No. 7 Year 2018 on Coordination, Planning, Monitoring, Evaluation, and Reporting of the Implementation of Sustainable Development Goals.


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Greenhouse Gas Emissions Reduction in the Energy Sector Background Indonesia’s Nationally Determined Contribution (NDC) outlines the country’s transition to a low-carbon future. Indonesia is committed to an unconditional emissions reduction of 29 percent by 2030 compared to the business-as-usual (BAU) scenario and up to a 41 percent reduction with international assistance. Indonesia submitted its first Nationally Determined Contribution in November 2016 as part of a global effort to limit the rise in global temperatures to 2 degrees Celsius. The energy sector is expected to be the primary source of emissions reduction, but the Government of Indonesia then shifts the load to the forestry sector, which is expected to contribute 17.2 percent, while the energy sector will contribute 11 percent. The lower target for the energy sector is in line with the Government’s continued commitment to use coal in the power sector as well as its expectation of lower electricity demand growth. The Presidential Regulation of the Republic of Indonesia No. 61/2011 calls for the National Action Plan for Greenhouse Gas Emissions Reduction (RAN-GRK) to establish the country’s voluntary target of reducing its emissions by 26 percent against the baseline scenario in 2020. As mandated by RAN-GRK, every province in the country needs to develop a Local Action Plan for Greenhouse Gas Emission Reduction (RAD-GRK) as a supplement to RAN-GRK. The implementation of these mitigation action plans at the provincial level is critical to achieving national climate goals and to lay the foundation for more ambitious climate action beyond 2020. Under the Presidential Regulation No. 61/2011, each province issues a RAD-GRK outlining steps to reduce greenhouse gas emissions through tangible actions, including in the energy sector. The RAD-GRK documents submitted by local governments in 2012 are currently being reviewed to determine gaps between planned reductions in each sector against the actual actions using an established monitoring, evaluation and reporting (MER) protocol. The RAD-GRK process has gone through a full cycle of planning-implementing-monitoring- evaluating, which involves all 34 provinces in Indonesia. Based on an evaluation of achievements of each province by 2016, the provincial governments are in the process of revising their RAD-GRKs. However, the expected time for completion of new governor regulations on RAD-GRK is still uncertain, as the Presidential Regulation 61/2011 on RAN-GRK is also under review. In late 2018, the National Development and Planning Agency (Bappenas) introduced low-carbon development planning (LCD) concept. The low-carbon development (PRK) concept integrates all sectors, observes the interplay among them, and quantify the impacts of the LCD activities to socio-economic aspects. The LCD concept has been incorporated into the Strategic Environmental Assessment3 (KLHS), as part of Mid-Term National Development Plan (RPJMN) 2020-2024 draft. The LCD is also related to Presidential Regulation No. 59/2017 on the Implementation to Achieve the Sustainable Development Goals (SDGs). Figure 2 shows the interlinkages between the LCD and SDGs, which emphasizes the perspective of Goal #13 as a hub that supports other goals. Figure 2. The Interlinkages of Low-Carbon Development and Sustainable Development Goals

3 KLHS is an environmental safeguarding tool in Indonesia. It acts as a policy dialogue tool for planners and policy makers, to engage the public and experts in making a plan or policy that is as green as possible. Peter Oksen and Taswin Munier, "Strengthening environmental safeguards," The Jakarta Post, December 14, 2014, https://www.thejakartapost.com/news/2014/12/11/strengthening-environmental-safeguards.html retrieved October 3, 2019

https://www.thejakartapost.com/news/2014/12/11/strengthening-environmental-safeguards.html


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ICED II Accomplishments Low-Carbon Development Planning. During 2019, ICED II intensively engaged with Bappenas and the National Action Plan for Low Emissions Development (RAN-GRK) Secretariat in preparing the concept, tools, and data sets to introduce the LCD concept to provincial governments. The RAN-GRK Secretariat tasked ICED II to provide assistance in the energy sector and its linkages to the economic and social sectors. Bappenas identified two tools to introduce Provincial Low Carbon Development Planning (PPRKD) to provincial governments:

• RED CLUWE (Reducing Carbon Intensity of Land Use, Waste and Energy), an input-output (I-O) based model that The World Agricultural Centre developed with support from GIZ’s Measuring, Reporting and Verification for Mitigation Measures in Indonesia (MRV MMI) Project. Statistics Indonesia (BPS) is developing the I-O template for all 34 provinces using a common base year to more accurately determine the impacts of PPRKD against many sectors in each province. The challenge in using I-O based modeling for the provinces’ energy sectors is obtaining fuel sales data by sector for each province. ICED II proposed to use data from a survey on large and medium-sized industries that Statistics Indonesia released in 2010 and is currently developing fuel data set for all 34 provinces.

• System Dynamics (SysDyn), a causal loop model based on systems thinking, that is endorsed by the World Resources Institute (WRI) and Partnership for Action on Green Economy (PAGE), a partnership of five UN agencies. The systems thinking approach is required for sub-national governments to incorporate KLHS in their development plans. It aims to encourage these governments to view climate change mitigation beyond CO2 emission reduction, and incorporates sectoral interactions as well as related socio-economic benefits. ICED II has been involved in discussions on systems thinking training design for local universities to support provincial governments in more dynamic climate change mitigation planning.

ICED II participated in and co-funded the Workshop on Provincial Low Carbon Development Planning (PPRKD) for the Western Region on September 2-5, 2019, in Medan, North Sumatra, which was attended by 129 participants from 10 Sumatran provinces. It was the first regional workshop for sub-national governments on low-carbon development where the RED-CLUWE tool was introduced. The workshop provided insights on provincial governments’ readiness in adopting the low-carbon

Low-Carbon Development and its Linkages with SDGs

In the context of SDGs, low-carbon development (LCD) is the environmental pillar that places the achievement of Goal 13 (Climate Change) as the foundation to support: Goals 7, 8, 9, and 17 (Economics Pillar), Goals 1, 2, and 4 (Social Pillar), and Goals 6, 11, 12, 14, and 15 (Environmental Pillar).


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development concept. It also provided feedback to the national government to improve the design of a program for provincial stakeholders. The introduction of the PPRKD will continue to be rolled out across in Indonesia throughout 2020. ICED II also provided technical assistance to the Ministry of Energy and Mineral Resources’ Directorate General of Electricity (MEMR DJK), which is responsible for reporting greenhouse gas emissions in power sector. As many GHG mitigation activities in this sector remain unreported, ICED II is developing GHG monitoring, evaluation and reporting (MER) guidelines for the power sector, which will be placed on MEMR DJK’s online platform. ICED II supported a series of focus group discussions (FGDs) and internal trainings for MEMR DJK in developing the guidelines. ICED II has proposed MER methodologies for renewable energy and energy conservation in the power sector. It is expected that MEMR DJK will adopt the guidelines next year, along with the online reporting platform power producers will use to report their mitigation actions. Energy Planning Background In March 2017, President Jokowi signed Presidential Regulation 22/2017 on the National Energy Plan (RUEN). The regulation states that RUEN is a central government plan for managing the national energy sector; it is an elaboration of and implementation plan for the multi-sectoral National Energy Policy (KEN). The RUEN sets a target of 23 percent of Indonesia’s final energy use to come from new and renewable energy resources by 2025. Within months of the Regulation’s signing, Minister of Energy and Mineral Resources Ignasius Jonan stated the Ministry’s priority for low-cost energy over favorable incentives for renewable energy sources as well as the reality of making such an energy transition within the span of eight years.4 ICED II Accomplishments ESI ESRI. MEMR’s Planning Bureau (Birocan) requested ICED II’s assistance in developing monitoring tools to measure MEMR’s annual performance using an Energy Security Index (ESI) and Energy Self Reliance Index (ESRI). For this work, ICED engaged the Indonesian Institute for Energy Economics (IIEE) as a subcontractor. The ESI and ESRI development process adopted the “4A principles”: Availability, Accessibility, Acceptability, and Affordability. ICED II held a series of discussions with various MEMR units to obtain their feedback on indicators and scoring. ICED II is now conducting a survey of energy stakeholders to determine the weights of the parameters. While awaiting the experts’ inputs, MEMR Birocan has used the ESI ESRI to measure MEMR’s historical performance. Once the process is completed, ICED II will hand the ESI ESRI over to the MEMR Birocan in the first quarter of 2020. Terms of Reference for Focus Provinces. ICED II develops terms of reference (ToR) in close coordination with government counterparts to implement various activities. They describe the scope of activity, objectives, timeline, and outputs to assure that ICED II and its counterparts agree on

4 “RI Unlikely to Achieve 23% Renewable Target by 2025,” The Jakarta Post, September 26, 2017.


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activity details prior to implementation. For 2019-2020, ICED II proposed to provide technical assistance in the provinces of North Sumatra, Aceh and South Sulawesi. The three ToRs were identical; their activities include the Regional Energy Plan (RUED), Regional Electricity Plan (RUKD), electrification planning, GHG mitigation in the energy sector, and energy database development. As of September 2019, the Heads of South Sulawesi and Aceh’s Energy and Mineral Resources Offices had signed the ToR. The local Development Planning Agency (Bappeda) and Energy and Mineral Resources Office of North Sumatra required the Provincial Secretary to sign the ToR. The signing is still in process. RUED. After submitting the drafts of their Provincial Energy Plans to the National Energy Council (DEN), the DEN mandated that each province increase its renewable energy target to achieve the national 23 percent renewable energy target by 2025. However, the provincial governments challenged the DEN, stating that the target was too high. ICED II continued providing technical support to the provincial governments regarding RUED, including providing inputs on RUED revisions. RUED in Aceh Province. ICED II assisted the Government of Aceh in finalizing the province’s draft RUED (also known as RUEA). Its assistance covered energy modeling, reviewing the narrative, and revisiting the program matrix during the RUEA finalization process, providing technical inputs the Energy and Mineral Resources (EMR) Office during the legal hearing before the Regional Assembly (DPRD), as well as supporting FGDs for RUEA review. The Provincial Government has submitted the draft of the qanun (a local regulation term that is specific to Aceh) on RUEA to the DPRD of Aceh in January 2019. To date, the DPRD has approved the qanun on RUEA.

RUED in North Sumatra Province. ICED II provided inputs on the RUED model’s use of Long-Range Energy Alternatives Planning System (LEAP) software, as well as reviewing the RUED’s narrative. When providing inputs to the RUED draft, ICED II explored other energy-related planning documents in the province, including RAD-GRK and Provincial Medium-Term Development Plan (RPJMD) draft to ensure the RUED’s alignment with the other provincial planning documents. ICED II supported a focus group discussion on RUED draft dissemination. Energy stakeholders in the province were asked to provide insights during the discussion. Although no major issues were raised during the FGD, the stakeholders believed it was crucial to establish an integrated provincial energy database that will inform future energy-related planning. Despite the progress made on the draft North Sumatra RUED, the legal process to make it a local regulation has been hampered since the RUED was not listed as a provincial legislative priority in 2019. The legal process will continue when North Sumatra’s EMR Office proposes that the Provincial Legal Bureau register the RUED as a provincial legislative priority. RUED in South Sulawesi Province. South Sulawesi submitted its RUED draft to DEN in 2018; however, it has been slow in becoming a provincial regulation. During 2019, ICED II met with the province’s EMR Office to discuss potential technical assistance for South Sulawesi. RUED review emerged as a priority, as the EMR Office must meet the RUED review completion target by December 2019 and enter the draft into the legal process in 2020. ICED II’s support for RUED review will begin in Quarter 1 of 2020. The project has hired an expert from a local university, whose responsibilities will include assisting the province with the RUED review process. To oversee future RUED implementation in the provinces, ICED II has begun conceptualizing the monitoring, evaluation, and reporting (MER) for the RUED through a desktop review of reporting


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mechanisms in the energy and GHG spheres. This includes the types of data required for each reporting platform. ICED II also developed a common reporting format to encapsulate RUED MER data as well as website mock-up. The project is also exploring the alignment of the RUED MER concept with existing reporting platforms to avoid the duplication of data submitted to various reporting platforms. Another issue that requires attention is a potential host for the RUED MER platform. While ICED II has discussed this matter with MEMR and DEN, further discussions are required due to personnel shifts within MEMR and DEN. An issue that the provincial government has cited during the energy planning process is the lack of cohesive provincial data. In FY 2019, ICED II encouraged its focus provinces to establish provincial energy data platforms. In North Sumatra, ICED II assisted a third party hired by the EMR Office to design a platform structure for North Sumatra’s energy data. ICED II has been engaging the North Sumatra Bappeda, PLN Regional Office and Communication and Information Office to facilitate data transparency and exchange. As for Aceh and South Sulawesi provinces, although database development has not yet begun, ICED II has listed the activity in its ToRs for the provinces. RUKN. MEMR issued the National Electricity Plan (RUKN) on August 1, 2019, through Minister of Energy and Mineral Resources Regulation No. 143/2019. ICED II predicted that the provincial governments will mainstream the Provincial Electricity Plan (RUKD) from 2019 onward and so included the RUKD in its ToRs for the focus provinces. The Aceh EMR Office requested that ICED II be part of the team developing Aceh’s RUKD. The team will comprise the provincial EMR Office as the lead with Bappeda, PLN Regional Office, other provincial offices, and ICED II. ICED II has been reviewing the Aceh RUKD model in preparing for RUKD work in Aceh. Meanwhile, the RUKD process for North Sumatra and South Sulawesi is expected to start in 2020. RAD SDGs. The North Sumatra Bappeda requested ICED II’s support to register ICED II activities in the program matrix of the Local Action Plan for Low Emissions Development on Sustainable Development Goals (RAD SDGs), particularly on energy programs for non-government entities in North Sumatra. ICED II has provided inputs based on its 2019 draft workplan for North Sumatra. Electricity Resource Planning, Procurement, and Operations Background Electricity planning is the purview of MEMR (RUKN), provincial energy offices (RUKD), and PLN (Power Supply Business Plan - RUPTL). The most recent national plan is RUKN 2019-2038, which was signed on August 1, 2019, in MEMR Decree No. 143/K/20/MEM/2019. RUKN 2019-2038 maintains the previous plan’s (2019-2028) target of a 23 percent share of new and renewable energy by 2030 and 28 percent by 2038, as well as a 100 percent electrification rate in 2020 (this rate was 98.3 percent at the end of 2018). The RUKN states that the remaining 1.7 percent of the population will be electrified through off-grid power generation. The 2019-2028 RUPTL contains PLN’s predictions on electricity demand growth, number of customers, village electrification, and the generation, transmission and distribution system over the 10-year period. As shown in Figure 3, coal is expected to continue dominating all fuel sources, rising slightly from 46 percent to 47 percent. Natural gas and liquefied natural gas will fall from 28 percent to 24 percent over the period, while new and renewable energy will increase from 13 percent to 22 percent.


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Figure 3. Projected Electricity Generation Fuel Mix 2019-2028

Source: PLN, 2019

Source: PLN, 2019.

PLN plans to add nearly 16,500 megawatts (MW) of generating capacity from renewable energy resources by 2028 (Tables 2 and 3). Large hydropower and geothermal will continue to dominate, accounting for 47 percent and 28 percent of the total, respectively. Small hydropower accounts for 9 percent and other renewables, which include solar PV, wind, and bioenergy, for 15 percent. The table shows that PLN will nearly double the expected contribution of small hydropower plants in RUPTL 2019-2028 compared to the previous RUPTL, while the contribution of other technology types remains similar.

Table 2. PLN RUPTL 2018-2027 (MW)

Type 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 TOTAL

46%

13%

28%

1%3%9%

PLN Generation Mix (2019)

Coal Oil Gas/LNG Other RE Geothermal Hydro

47%

7%

24%

3%6%

13%

PLN Generation Mix (2028)

Coal Oil Gas/LNG Other RE Geothermal Hydro


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Geothermal 190 151 147 455 245 415 2759 45 145 55 4607 Large Hydro 140 238 479 200 168 232 27 20 20 10 1534 Small Hydro 154 336 755 0 192 1151 3124 120 466 1467 7765 Other RE 75 217 316 846 470 156 419 5 17 42 2563 TOTAL 559 942 1697 1501 1075 1954 6329 190 648 1574 16469

Source: PLN RUPTL 2019-2028.

Table 3. PLN RUPTL 2017-2026 Type 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 TOTAL

Geothermal 210 150 221 235 405 445 355 2537 20 5 4583 Large Hydro 108 202 366 103 31 0 0 0 0 0 810 Small Hydro 66 287 193 755 315 196 635 4461 0 564 7472 Other RE 127 160 260 335 245 240 309 300 0 70 2046 TOTAL 511 799 1040 1428 996 881 1299 7298 20 639 14911

Source: PLN RUPTL 2018-2027. PLN’s RUPTL reflects its strategy for renewable energy to meet electricity demand, reduce GHG emissions in the power sector, provide an attractive investment scheme for the private sector, and contribute to lower overall electricity production costs. President Jokowi’s signature 35,000 MW program directed PLN to build or sign contracts with independent power producers (IPPs) to reach 35,000 MW of new generating capacity by 2019. ICED II Accomplishments Grid Code Revision. As the amount of renewable energy going into the national energy mix grows, PLN will need to integrate variable renewable energy generation into its power grid. In FY 18, ICED II analyzed the solar PV interconnection capacity for Sulawesi and found that the grid could no longer receive additional variable renewable energy (VRE) capacity such as wind and solar. Indonesia has five separate grid codes, Java-Bali, Sumatra, Sulawesi, Kalimantan and Nusa Tenggara, which will be integrated in one MEMR regulation. As a follow-up from fiscal year 2018, ICED II developed recommendations for revising Sulawesi’s grid code in terms of technical requirements, operations and data requirements, and interconnection application requirements for VRE power plant integration. These recommendations are based on increasing integration of VRE, particularly wind power. The project also helped the Java-Bali and Kalimantan grids in revising their grid codes to accommodate VRE. Among other things, the revised grid codes will guide independent power producers (IPP) in designing and operating their projects in accordance with the new regulations and requirements. ICED II submitted the recommendation for the three systems to the Grid Code Management Committee (KMAJ), which was appointed by MEMR DJK. KMAJ consists of representatives from government institutions, utilities, industrial and commercial customers, and IPPs. KMAJ will submit the revised grid codes to MEMR DJK prior to their issuance under an MEMR regulation, which will enforce the codes’ implementation throughout Indonesia.


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Grid Impact Study for VRE. On March 4, 2019, ICED II conducted the Workshop on Grid Impact Study for Variable Renewable Energy Generation Plants, facilitated by experts from the California Independent System Operator (CAISO) and ICED II. The participants included MEMR representatives and young engineers from PLN headquarters and regional offices. The workshop provided applied hands-on exercises on various power grid scenarios, impact analysis, and appropriate mitigation measures. PLN identified best practices to adopt in transmission system planning and operations to optimize VRE grid integration and improve the evaluation of solar PV and wind power project proposals. The workshop also developed Grid Impact Study Methodology Guidelines to help PLN plan to accommodate VRE in its transmission grid. PLN System Planning assigned a core team to develop the guidelines with assistance from ICED II. The methodology covered four types of studies: 1) unit commitment and economic dispatch (UCED) simulation, which includes estimating flexibility capacity and operational requirements, 2) steady-state analysis of the power network, which includes load flow, short-circuit and power quality studies, 3) dynamic stability analysis of the power grid, which includes transient stability studies and estimation of primary frequency response capacity requirement, and 4) estimating flexible capacity requirements to deal with the effects of increased ramping, variability and forecast error of VRE. The proposed methodology is software independent. It describes the process, input data, and analysis of results. PLN accepted the proposed methodology. Power System Analysis. ICED II responded to PLN’s request for assistance with power system analysis and system defense schemes in accommodating high VRE penetration by holding training on Power System Analysis on June 10-14, 2019. Leading the training were engineers from Arizona State University and CAISO. PLN engineers tasked with system planning and operations attended the five-day session, which included a day devoted to hands-on reviews of actual disturbances in the Java-Bali power grid and discussion sessions on power flow fundamentals, power system stability fundamentals, remedial action (defense) schemes, and modelling of renewable energy (solar PV and wind). Automatic Dispatch System (ADS) for PLN’s Small/Isolated Power Grid. ICED II subcontractors installed an ADS control system in PLN’s Sumba Timur Mini Grid. The system connects to the grid to activate pre-installed automatic generation control (AGC) in power plants. The AGC activation works to overcome problems caused by the intermittent power output from the 1 MWp Hambapraing solar PV powerplant as well as frequency and voltage irregularities on the grid due to the manual dispatch and control of diesel generators. The ADS installations are located in diesel power plant control rooms in Kabanjawa and Waingapu. The system monitors and controls the Sumba Timur Grid’s electrical frequency, which is set at 50 Hz by controlling the power output of PLN’s Kabanjawa and Waingapu diesel power plants. The monitoring and control of the Sumba Timur grid’s frequency has been manual, even after the integration of the Hambapraing plant, which risks blackouts and equipment damage. By installing ADS, PLN is eliminating those risks and improving the quality of the power it delivers to consumers. The general manager of PLN’s East Nusa Tenggara (NTT) Regional Office and manager of the Sumba Area confirmed that the ADS installation has improved PLN’s power quality. Its executive vice president (EVP) of system planning has suggested developing a permanent monitoring ADS control system for this grid.


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In the next fiscal year, ICED II and PLN plan to conduct a workshop on ADS control system installation for PLN regional office staff. This will replicate the success of the ADS installation, thus increasing renewable energy penetration in small/isolated systems nationwide Distribution System Planning. ICED II responded to a PLN request for support in the development of distribution planning guidelines, which will be used in all regions of Indonesia as a reference for network expansion as well as assessments of renewable energy generation integration. While PLN has several standards and internal reference documents for technical matters, it lacks specific standards for renewable energy. The guidelines will adopt international best practices for integrating renewable energy into distribution systems. By the end of this fiscal year, ICED II had developed draft distribution system planning guidelines and PLN provided inputs on them during an FGD. Next year, ICED II will finalize the draft. Off-grid Solar PV Guidelines. On February 21-22, 2019, ICED II held a workshop on “Strengthening Off-grid Solar Photovoltaic Feasibility Studies to Enhance Rural Electrification.” Twenty-six participants attended the Bali workshop. During the training USAID handed over the Guidelines to MEMR’s Directorate of Various New and Renewable Energy (Aneka Energi). The Guidelines cover: 1) rural energy resource planning, 2) basic principles of solar PV and a feasibility study survey guide, 3) technical system design of solar PV, and 4) the development and submission process for off-grid solar PV proposals for rural electrification. ICED II distributed the guidelines to all 34 provincial energy offices in Indonesia. They will be a useful reference for preparing feasibility studies of off-grid solar PV power plants and in regional electrification planning. Rural Electrification Indonesia’s National Energy Policy (KEN) states that the country should achieve nearly 100 percent electrification by 2020. Meanwhile, the 2015–2019 National Medium-Term Development Plan (RPJMN) targeted an electrification rate of 96.6 percent by the end of 2019. According to MEMR, the national electrification rate reached 93.08 percent at the end of 2017. Figure 4 shows the progress made in access to electricity since 2010, as well as projections for 2018 and 2019.

Figure 4. Indonesia’s Electrification Rate, 2010-2019


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Source MEMR, 20195 The responsibility for reaching the national rural electrification target is shared by PLN, MEMR and local governments. MEMR Regulation No. 38/2016 states one means of accelerating electrification in under-developed rural areas, remote regions, border areas, and small inhabited islands is to implement small-scale electricity enterprises. The regulation allows for the licensing of state- and locally-owned business entities, privately owned businesses with legal status in Indonesia or cooperatives to operate micro-utilities in areas where PLN does not provide service and at prices determined by the provincial government and MEMR. Several licenses have been issued to private entities under Regulation 38. According to PLN’s Power Supply Business Plan (RUPTL) 2019-2028, an additional 8.9 million customers (households) will be connected during this 10-year period. To achieve 99.9 percent energy access, MEMR estimates that 1,592,990 households need access to electricity. Of this figure, about 721,800 households cannot afford the connection fee.6 Figure 5 shows the projected growth of new PLN customers in the coming decade. Apart from the option of providing grid access to these households, MEMR will also distribute solar-powered energy saving lamps (LTSHE). The LTSHE initiative is viewed as “pre-electrification” access that will only meet minimum indoor household lighting needs.

Figure 5. Projected New PLN Household Customers

5 MEMR Presentation on Fair Energy: Five-year progress – Achievement as of First Semester 2019. 6 MEMR Communications Team, "Achievement of Directorate General of Electricity in Semester 1/2019: Electrification Ratio Increases, Electricity Tariff Stable, Electricity Business Improves", July 3, 2019 (only available in Indonesian), <https://www.esdm.go.id/id/media-center/arsip-berita/capaian-ditjen-ketenagalistrikan-semester-i-2019-rasio-elektrifikasi-meningkat-tarif-listrik-tetap-kemudahan-berbisnis-listrik-membaik-1> retrieved October 13, 2019.

https://www.esdm.go.id/id/media-center/arsip-berita/capaian-ditjen-ketenagalistrikan-semester-i-2019-rasio-elektrifikasi-meningkat-tarif-listrik-tetap-kemudahan-berbisnis-listrik-membaik-1




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Source: PLN RUPTL 2019-2028

ICED II Accomplishments Energy Access Geospatial Map. In 2019, ICED II obtained the 2018 Village Potential (Podes) data from Bappenas, which was updated from 2014 data. ICED II updated Indonesia’s energy access geospatial map by matching the 2018 Podes data with the 2013 version of the village boundary map. ICED II has been using this updated electricity access map for electrification planning with provincial stakeholders. Rural Electrification in North Sumatra. ICED II facilitated a series of meetings between the North Sumatra EMR Office and PLN North Sumatra Regional Office on data alignment for energy access in North Sumatra. ICED II had been encouraging these offices and the local development planning agency (Bappeda) to disclose their data and collaborate on aligning them. ICED II led training and a workshop on Electrification Planning in Medan on March 12-13, 2019. Fifty-nine staff from the offices participated in the workshop. ICED II presented data on energy access from various sources and highlighted the differences among them. In addition, the participants were introduced to the use of basic geospatial mapping to identify priority areas for energy access. On July 30-31, 2019, the project organized a follow-up workshop that introduced advanced geospatial mapping for energy access, including clustering, rooftop tagging, demand sizing and map overlay. During an exercise, participants were able to develop geospatial maps based on electricity access data for their respective operating areas and overlay them with information required for electricity access planning, which includes 20 kilovolt (kV) power distribution networks, roadmaps, and building distribution. ICED II’s activities on electricity access expanded in response to the Government of North Sumatra’s request to identify the potential contribution of renewable energy in the agriculture sector, especially to increase paddy production through solar-powered water pumps and smart floating farms. ICED II participated in a survey on August 12-15, 2019, with the province’s Crops and Horticulture Office (Dinas TPH) and the EMR Office. Samosir district was selected as a pilot site for installing solar-powered water pumps. ICED II submitted two draft reports to the North Sumatra Bappeda. The first was on the survey findings and the second was on a pre-feasibility study of solar-powered water pumps for paddy field irrigation in Sitolu Huta village of Samosir district. ICED II also

0

500

1000

1500

2000

2500

3000

2020 2021 2022 2023 2024 2025 2026 2027 2028

2,761

906 863 817 793 764 701 677 656

Projected New PLN Customers (Household) - Thousand Customers


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presented alternatives to meet water demand for the province’s agricultural sector, including an analysis of its cost and benefits, to the EMR Office. Rural electrification in Aceh. ICED II assisted PLN’s Aceh Office in updating its 20 kV electricity network map through a training and workshop on April 29-30, 2019, and provided follow-up technical support. During the training, participants mapped the network in their area of operations and provided inputs on the grid extension to update the earlier network map. After the workshop, ICED II finalized the updated the map by digitizing the information and data gathered from participants. It held a follow-up workshop on Electrification Planning on June 24-25 in Banda Aceh, engaging representatives from PLN’s Aceh and EMR offices. The participants were able to develop geospatial maps using electricity access data overlay them with information required for electricity access planning. The participants also provided feedback to the 2018 Village Potential (Podes) data based on their field experience. Grid-Connected Renewable Energy Program In 2018, MEMR Regulations No. 10/2017 and No. 50/2017 were amended. The latter replaced MEMR Regulation No. 12/2017 on Utilization of Renewable Energy for Electricity Generation. On December 19, 2018 MEMR Regulation No. 53/2018 amended MEMR Regulation No. 50/2017. No. 53/2018 added a new type of renewable energy technology: biofuel power plants. There have been no further amendments on using the direct selection method or build-own-operate-transfer (BOOT) scheme. Direct selection allows PLN to select among qualified developers to undertake a project. The BOOT scheme provides for PLN to assume ownership and control of the generation assets after the term of the power purchase agreement (PPA) contract. The electricity tariff from biofuel power plants is a subject of negotiation between PLN and independent power producers (IPP) and depends on the regional electricity generating cost (BPP), whose reference price, unlike those of other power plants, has been set at 85 percent to 100 percent of the regional BPP. Table 4 summarizes the regulatory treatment of renewable energy IPPs based on MEMR Regulations No. 50/2017 and No. 53/2018. The underlying concept of the BPP pricing strategy is that: 1) PLN should never have to pay more for electricity produced from renewable energy resources than the regional BPP and 2) where the regional BPP is greater than the national BPP, PLN should be able to purchase electricity produced from most renewable energy resources at a maximum of 85 percent of the regional BPP.

Table 4. Summary of Regulatory Treatment of Renewable Energy IPPs Renewable Energy Resource

Appointment Method

Areas where Regional BPP < National BPP

Areas where Regional BPP > National BPP

Investment Basis

Solar Direct selection based on capacity Quota

Negotiated between IPP and PLN

Maximum 85% of regional BPP

BOOT

Wind Direct selection with capacity Quota

Negotiated between IPP and PLN


BOOT

Hydro Direct selection Negotiated between IPP and PLN

Maximum of 100% of regional BPP.

BOOT


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Renewable Energy Resource

Appointment Method

Areas where Regional BPP < National BPP

Areas where Regional BPP > National BPP

Investment Basis

Biomass Direct selection To be negotiated between IPP and PLN


BOOT

Biogas Direct selection To be negotiated between IPP and PLN


BOOT

Waste-to-Energy*

Direct appointment To be negotiated between IPP and PLN


Not specified

Geothermal Direct appointment where resources are proven

To be negotiated between IPP and PLN


BOOT

Ocean Energy Direct selection To be negotiated between IPP and PLN


BOOT

Biofuel Direct selection To be negotiated between IPP and PLN

To be negotiated between IPP and PLN

BOOT

* - A Presidential regulation will set a higher price for priority cities On February 12, 2018, MEMR issued a second amendment of MEMR Regulation No. 10/2017 to MEMR Regulation No. 10/2018 on power purchase agreement. Earlier, in August 2017, it issued the first amendment of MEMR Regulation No. 10/2017 to MEMR Regulation No. 49/2017 on power purchase agreement. The latter deleted the provisions on government force majeure of policy change, which releases PLN from the obligation to make dispatch payments in the event its grid is disrupted due to a force majeure policy event. Regulation No. 10/2018 essentially does the same for legislative changes. These changes in the risk allocation for force majeure events has raised a material bankability concern for Indonesian power projects, especially during the 2018 presidential election. The provisions of MEMR Regulation No. 10/2018 that were not amended include: 1) the PPA term must not exceed 30 years from the project’s commercial operating date (COD), depending on the type of plant, 2) the calculation of the capacity fee (component A) on the electricity sales price is based on the investment value having depreciated for at least 20 years, 3) where a change in law results in a greater cost impact on the developer, the tariff will be adjusted to compensate, 4) PLN may request the IPP to accelerate the COD in return for incentives (to be specified in the PPA); likewise, the IPP will face certain penalty payments upon failure to meet an accelerated COD that has been agreed on, 5) if PLN is unable to purchase the electricity produced under the PPA, it must pay the IPP a penalty (take or pay) in proportion to the investment component. Furthermore, the “take or pay” period (the requirement that PLN pays for the electricity produced by the renewable energy IPP if it is available regardless of whether PLN needs the output of that facility at that time) is based on the period of time required for the repayment of debt obligations. Seventy renewable energy PPAs were signed in 2017, for a total capacity of 1,214.17 MW (Table 4). In 2018, only five such PPAs were signed, for a total capacity of 366.9 MW.

Table 5. Status of Renewable Energy PPAs Signed in 2017 Project Type Number of Projects Capacity (MW) COD 6 35.3 MW Construction 35 834.7 MW


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In process of Financial Close 23 323.8 MW Slated for Termination 4 16.1 MW Terminanted 2 4.2 MW

TOTAL 70 1,214.0 MW Source: PLN 2019. Of the 70 projects, less than 10 percent has reached COD, and 50 percent are still under construction. Thirty-three percent have had difficulties in financing, and some have not provided performance bonds. While in 2018, the five renewable energy PPAs signed are as follows:

Table 6. Status of Renewable Energy PPAs Signed in 2018 Project Type Number of Projects Capacity (MW) Hydropower 1 1.0 MW Small hydropower (<10 MW) 1 350.0 MW Biogas 1 1.0 MW Biomass 1 9.9 MW Municipal Solid Waste 1 5.0 MW

TOTAL 5 366.9 MW Source: PLN 2019 As of July 2019, two projects, a biogas and a minihydro power project, had reached COD, while the other three are still in the financing process. In 2018, MEMR issued MEMR Regulation No. 49/2018 on Rooftop Solar PV for PLN Consumers in an effort to increase renewable energy’s share in the energy mix. This regulation sets import and export tariffs as well as installation procedures. The regulation distinguishs between residential-scale solar PV and utility-scale solar PV, and limits the capacity of behind-the-meter solar PV installations. In September 2019, MEMR Regulation No. 13/2019 amended MEMR Regulation No. 49/2018 by deleting capacity limits for licensing and certification. This simplifies the certification process for high-capacity rooftop solar PV. ICED II Accomplishments Guidelines for Bioenergy. In two previous fiscal years, ICED II submitted “Hydropower Feasibility Study Review Guidelines,” a package of guidelines and tools for reviewing and assessing the quality of hydropower projects. In FY 2019, it submitted three sets of bioenergy guidelines and tools for feasibility study evaluations of biogas, biomass, and municipal solid waste projects. These guidelines were intended for PLN’s internal use in assessing bioenergy power project proposals. After submitting the guidelines to PLN’s New and Renewable Energy Division (EBT), ICED II held three batches of training to disseminate the Guidelines to PLN EBT and PLN regional offices throughout Indonesia. Each training batch included site visits to bioenergy power plants. The training took place in Belitung on November 21-23, 2018, in Pontianak on February 27-March 1, 2019, and in Batam on April 24-26, 2019.


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Interconnection Guideline Review. In FY 2018, ICED II provided inputs for the revision of PLN Boards of Directors Decree No. 0357.K/DIR/2014 on Interconnection to the Distribution System from Renewable Energy Generation Guidelines. In April 2019, Regulation No. 0064.P/DIR/2019 (of the same name) was issued to replace the 2014 decree. The regulation adopted revisions and inputs from ICED II as well as its review tools, which were attached as appendix. After the decree’s issuance, ICED II and PLN conducted two batches of training on Interconnection Study Reviews based on PLN Board of Directors Regulation 0064/2019. Staff of PLN regional offices, PLN EBT and PLN Corporate University participated. The first batch took place on July 22-26, 2019, in Surabaya and the second on August 19-23, 2019, in Bali. PLN has begun using PSS SINCAL, which is power system analysis software for distribution system planning studies. This is new software for PLN planners, who had traditionally used ETAP software. ICED II thus held an intensive train-the-trainer (ToT) session on July 15-19, 2019, in Bandung that focused on using PSS SINCAL for distribution system level power system studies. The key facilitators for the training were power system experts from Bandung Institute of Technology. Three staff from ICED II and seven staff from PLN took part in the ToT. They became facilitators of trainings on PSS SINCAL for interconnection study reviews. Rooftop Solar PV Power Economic Impact Study. ICED II, the U.S. National Renewable Energy Laboratory (NREL), and Lawrence Berkeley National Laboratory (LBNL) conducted an “Economic Impact Study for Distributed Solar PV” in December 2018. This study followed the issuance of MEMR Regulation No. 49/2018 on Rooftop Solar PV and covered technical aspects such as the impacts of rooftop solar PV penetration on PLN’s distribution grid and such financial aspects as economic driver for rooftop solar PV deployment, revenue impacts for PLN, as well as jobs and economic development resulting from rooftop solar PV businesses. The study gathered data and inputs from MEMR, PLN and solar PV associations. ICED II held an FGD and discussion sessions to gather inputs and feedback for the study. By the beginning of FY 2020, ICED II and NREL/LBNL plan to complete the final report and present it to PLN and MEMR Aneka Energi. Sustainable Finance This year, ICED II helped Bappenas and the Indonesia Climate Change Trust Fund (ICCTF), a unit within Bappenas, in preparing the agenda for financing Sustainable Development Goals (SDGs) 2030. ICED II also coordinated and supported Indonesia’s Financial Services Authority (OJK) in implementing a sustainable finance roadmap and assisted the Bali Center for Sustainable Finance (BCSF). Other activities included holding group and in-house training for banks and financial institutions, and assisting PT Sarana Multi Infrastruktur (PT SMI), a state-owned infrastructure financing company, with project preparation under the Indonesia SDGs One platform. ICED II Accomplishments OJK Sustainable Finance Road Map. ICED II and USAID met with OJK’s International Affairs Department to discuss activities and the 2019-2020 work program. OJK had an internal reorganization which resulted in the sustainable finance program’s transfer from the Banking


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Research and Regulation Department (DPNP) to the International Affairs Department. The capacity building activity was also moved from DPNP to the OJK Institute. During a follow-up meeting with OJK and the OJK Institute, ICED II discussed the training plan for 2019-2020 and sought direction on a green lending survey. ICED II had engaged with the Institute for Economic and Social Research, Faculty of Economics and Business of the University of Indonesia (LPEM FEB UI) in 2018 to conduct a green lending survey. Despite a signed contract between ICED II and LPEM FEB UI, the survey has not been conducted. The OJK is more interested in shifting the research to a different topic, which will be discussed after OJK’s annual budgeting process in October 2019. Sustainable Development Goals (SDG) Indonesia One. Following a series of discussions with PT SMI and the launch of the SDG Indonesia One finance facility, an integrated platform to address issues with regards to project preparation, investments and financing SDG-related infrastructure projects. ICED II and PT SMI agreed that ICED II’s technical assistance should be directed toward project preparation. Two projects being prepared are street lighting for Bengkulu city and solar PV rooftops for the West Java government. In Bengkulu, ICED II had been providing inputs to PT SMI on the terms of reference, work plan, and interim feasibility study report prepared by PT SMI’s consultant. The project is now working on a value-for-money assessment of municipal financing and public private partnerships for street lighting. ICED II prepared a concept note on solar PV rooftop in public buildings in West Java province. PT SMI submitted the concept note to the Korea Environmental Industry & Technology Institute (KEITI) to obtain project preparation facility from KEITI. The facility will focus on feasibility studies; PT SMI’s municipal financing or the Green Climate Fund are potential financing facilities for this project. Bali Center for Sustainable Finance (BCSF). In FY 2018, ICED II submitted a final report on BCSF (an advisor to Bali’s governor) and the BCSF Roadmap 2018-2030 to OJK. BCSF consists of three research groups: 1) social and environmental governance, 2) sustainable agriculture and ecotourism, and 3) green infrastructure. The green infrastructure research group covers multiple topics, including renewable energy, waste management, and green buildings. In January 2019, ICED II and BCSF attended a courtesy meeting with Bali’s governor. BCSF talked about its vision and activities and ICED II about its project activities. The governor asked ICED II and BCSF to assist the Bali government in realizing the Bali Green Energy vision. To strengthen BCSF’s clean energy capacity and respond to the governor’s request, ICED II and BCSF will hold a series of discussions next year. The discussion series will also become a forum for obtaining inputs from local stakeholders on the draft Bali Clean Energy regulation, Regional Electricity Plan (RUKD), and Regional Energy Plan (RUED). Clean Energy Financing and Sustainable Finance Training Program. Extending its support to OJK in capacity building for financial service institutions, ICED II worked with the OJK Institute to organize environmental and social risk analysis (ESRA) training. Two batches of training were held in 2019. The first took place on August 5-8 in Yogyakarta and focused on mini-hydro power plants. Forty-two staff from financial institutions (banks and non-banks), the OJK, Bappenas, and ICCTF participated. Trainees visited the Jelok mini-hydro plant, which is owned and operated by PT Indonesia Power, a PLN subsidiary. Individual Bank Trainings. Several banks (e.g., BCA, BNI, Bukopin, OCBC NISP) asked ICED II for individual k trainings on sustainable finance and financing clean energy projects. The requests are


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part of their sustainable finance action plans, which came about as a result of OJK’s regulation on sustainable finance. ICED II organized mini-hydro power plant training for 28 BNI corporate and commercial staff on September 2-3, 2019. BCA asked for ICED II’s help in developing a module on social and environmental analysis. BCA will apply the module and its Learning Center will adopt it as part of the bank’s training program (beginning with training scheduled for November 2019). ICED II has been working with the Ministry of Environment and Forestry in developing the module. BCA It has also asked ICED II to facilitate training on solar PV power projects. PPA Evaluation Handbook. The power purchase agreement (PPA) is critical in securing a project’s financial close. However, financial institutions are not yet familiar with PPAs for clean energy projects. ICED II engaged UMBRA Strategic Legal Consulting to prepare a handbook on PPAs for banks and held a consultation meeting to obtain inputs from OJK, financial service institutions, research organizations, and other donor agencies. ICED II used the draft handbook during ESRA training in August 2019. The handbook is scheduled for completion in the first quarter of FY 2020. Financing SDGs 2030 Agenda. The GOI appointed Bappenas to coordinate the implementation of its Sustainable Development Goals. ICED II helped Bappenas prepare and mobilize financing for the SDGs 2030 agenda and a paper on renewable energy projects (Re-Pro). The paper consisted of a brief overview on clean energy in Indonesia and a list of potential projects. Bappenas used it as an investment teaser during at the Conference of the Parties (COP) 24 in Katowice, Poland; it received some interest from international financial institutions, including the European Investment Bank. For the upcoming COP 25 in Santiago, Chile, Bappenas has coordinated with ICED II in preparing a second edition of this document. ICED II also helped Bappenas develop a concept note for the Financing SDGs 2030 Agenda and facilitated a meeting between it and OJK. As a result, Bappenas and OJK are drafting a memorandum of understanding (MoU) on financing SDGs. The Ministry of National Development Planning and the head of OJK plan to sign the MoU during the SDGs Summit in October 2019. Bappenas also asked ICED II to assist ICCTF’s energy working group, which was established in early 2019 under Bappenas’ Directorate Mineral Resources, Energy, and Mining (DSDEMP). ICED II has provided technical assistance and capacity building to ICCTF since its establishment. This year, ICED II facilitated an ICCTF visit to a solar PV power plant in Sumba Timur, NTT and a mini-hydropower project in North Sumatra. ICED II also helped ICCTF develop a methodology for project site selection, facilitate the engagement process with regional government agencies, and prepare a clean energy project pipeline. ICED II Support to Clean Energy Projects A central part of ICED II is its support to renewable energy projects. Its assistance can take the form of technical evaluations of project designs and business plans, linking projects in the ICED II pipeline to a range of financing mechanisms that may be available for public/private project developers to access beyond the conventional banking /financial services industry, and facilitating the development of pilot domestic financing mechanisms. ICED II assistance is provided to public and private sector partners who specifically request input on their projects and project facilitation support.


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As of September 30, 2019, ICED II’s clean energy project pipeline included 287 projects (274 renewable energy projects and 13 energy efficiency projects) with a combined generating capacity of 3,640.89 MW (renewable energy projects only). Figure 6 shows the geographic distribution of the ICED II pipeline. During FY 2019, ICED II supported 57 renewable energy projects at various stages of development. Support was provided to project developer/sponsors, financiers and PLN (as the power off-taker). Hydropower accounted for 36 projects (63 percent of the total), biomass for 7 (12 percent), biogas for 2 (3 percent), wind for 3 (5 percent), and solar PV for 5 (8 percent). ICED II also produced 52 project memoranda during the period. Table 7 summarizes the ICED II-assisted projects that reached financial close or their commercial operating date (COD) during FY 2019. Table 9 (Section 3) provides a summary of the ICED II results achieved during FY 2019 and since the beginning of the project. The highlights of ICED II assistance to renewable energy projects in FY 2019 included:

• Commercial operation was attained by three solar PV power plants (15 MW total) in NTB • Commercial operation was reached by four mini-hydro projects (20 MW) in Central Java,

Bengkulu, and North Sumatra • Financial close was attained by two mini-hydro power projects (15 MW total) in North

Sumatra, with total investment of $25,011,286 million.


26 INDONESIA CLEAN ENERGY DEVELOPMENT II www.iced.or.id

Figure 6. ICED II Clean Energy Project Pipeline (as of September 30, 2019

) Table 7. ICED II-Assisted Renewable Energy Projects Achieving Financial Closure and COD in FY 2019 (REDACTED)


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Clean Energy Technology and Innovation Fund (CETIF) CETIF funds are used to augment ICED II interventions. Table 8. Activities Funded through the CETIF during FY 2019 (Redacted)


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3. ICED II STRATEGY AND PROGRESS TOWARD ACHIEVING RESULTS

ICED II is a results-oriented technical assistance program. It works with a variety of public and private sector partners to implement policies, programs and projects that will make measurable contributions to the government’s renewable energy, GHG emission reduction, and electrification targets. It is important to understand the relationships among the project’s performance indicators. As shown in Figure 79, ICED II pursues two distinct, but interrelated tracks: project support and program support.

Figure 7. ICED II Key Performance Indicators and Results Framework

Program-level support is intended to improve institutional capacity and the effectiveness of policies, strategies, plans and regulations, which in turn will result in an overall improvement of the investment climate for clean energy. At the project level, ICED II supports various stakeholders (e.g., developers, financiers, power purchasers) in improving the feasibility and bankability of specific clean energy projects. This results in increased mobilization of investment and the implementation of renewable energy and energy efficiency projects. Once operating, these projects generate electricity (in the case of grid-connected renewable energy projects) or energy savings (in the case of energy efficiency projects) that together increase access to clean energy and reduce in greenhouse gas emissions. ICED II’s quantitative performance indicators and life-of-project (LOP) target results are shown in Table 9, which gives the project results achieved to date, from May 2015 through September 2019. Section 3 of this report provides additional information on ICED II results.

Laws, policies, strategies, plans, or regulations

Institutions with improved capacity

People trained in clean energy or climate change

Investment mobilized ($)

Installed renewable energy

generation capacity (MW)

Implemented energy efficiency

projects (#)

Energy saved (GJ) Improved

energy services

Electricity generation (MWh)

GHG emission reduced (CO2e)

Project Support


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Table 9. ICED II Performance Indicators and Quantitative Results No. Indicator LOP Target

Results Results Achieved Oct. 2017 – Sept.

2019

Results as of Sept. 30, 2019

High-Level Results 1 GHG emissions reduced (metric tons

CO2e) At least 4.5

million 0.88 million 5.5 million

2 Investment mobilized At least $800 million

$41 million $1,577.6 million

3 Improved energy services (persons) At least 5 million 465,562 1,854,960 4 Institutions with improved capacity At least 20 1 34 5 Laws, policies, strategies, plans, or

regulations At least 20 15 47

Selected Component-Level Results

6 Clean energy generation capacity installed

400 MW 107 MW 299.04 MW

7 Females with increased self-efficacy 70% 96.3% 93% 8 Generating capacity reaching financial

closure 400 MW 23 MW 559.6 MW

9 Projected GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations or technologies related to clean energy (tons CO2e)

27 million 2.44 million 39.7 million

10 People trained in climate change 5,000 1,991 6,502 11 Lifetime energy savings from energy

efficiency/conservation 2.8 million GJ 0 752,629 GJ

Indicator 1: Greenhouse gas (GHG) Emissions, Estimated in Metric Tons of CO2 Equivalent, Reduced, Sequestered, or Avoided through Clean Energy Activities Supported by USG Assistance Indicator 1 tracks ICED II’s progress in achieving actual reduced or avoided GHG emissions. In other words, ICED II reports the results from electricity produced (or energy saved) during a reporting period. Actual emissions reductions can come from operating clean energy projects as well as the implementation of clean energy policies and actions, including but not limited to nationally appropriate mitigation actions (NAMAs), National and Regional Energy Planning (RUEN and RUED, respectively), National and Regional Action Plans for Reducing Greenhouse Gas Emissions (RAN-GRK and RAD-GRK), the sub-national medium-term development plan (RPJMD), Planning for Energy Access, renewable energy power plant interconnection guidelines, solar PV regulations, energy efficiency or renewable energy policies, regulations and standards, GHG reporting programs, , and standards and specifications of technologies that result in emission reductions.


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The GHG emissions reduction targets are achieved through:

• Calculating the GHG emissions of renewable energy and energy efficiency projects that are installed and begin operating. This includes the recurring GHG emissions reduced during the reporting period from projects that were completed during both ICED and ICED II. Because methane has a GHG equivalent that is 25 times that of CO2, biogas and landfill gas projects will yield greater results for the same generating capacity and electricity production than other renewable energy project because they capture methane as well as avoid emissions from other power plants on the grid.

• Assisting MEMR and PLN in the development and implementation of policies and regulations (such as feed-in tariffs, requirements for conducting interconnection studies, and minimum energy performance standards for equipment or appliances). Actual GHG emission reduced are calculated by totaling the emissions reductions of operating ICED II-assisted projects that were developed after the adoption and implementation of policies, regulations and plans that ICED II assisted.

• Assisting Bappenas (RAN/RAD-GRK Secretariat) in the implementation of RAN/RAD-GRK baseline assessments, tools/methodology development, data compilation and modeling, guidelines development, capacity building, and monitoring, evaluation and reporting (MER) for the energy sector. Avoided emissions from the RAN-GRK program are based on national-level reporting of their respective implemented projects (actions).

• Assisting provincial governments in implementing energy sector actions from the RAD-GRK or RUED related to local energy policies, regulations or funding for infrastructure or operations that reduce GHG emissions. Actual GHG emission reductions resulting from specific programs or projects, as well as the expected GHG emission reduction through 2030.

As of September 30, 2019, ICED II reported 2,090,441 tons of CO2e reduced or avoided from projects, and 3,416,510 tons from the 2015 implementation of RAN/RAD-GRK (at the national and provincial levels). The total, 5,506,951.4 tons of CO2e, represents 122.4 percent of the target 4.5 million tons CO2e at a point where 85 percent of the time in the ICED II life of project (60 months) has been expended. ICED II reported 39,699.758 tons of projected GHG emissions reduced or avoided through 2030 against a target of 27 million tons (147 percent).

Indicator 2: Amount of Investment Mobilized (in USD) for Clean Energy as Supported by USG Assistance Leveraged investment includes finance mobilized (or leveraged), enabled by ICED II assistance, for actions, activities, projects or programs that avoid or reduce GHG emissions. Finance can be mobilized from the public sector (e.g., other governments or multilateral entities) or the private sector (e.g., equity, loans or other financial products). It includes clean energy projects, as well as the associated infrastructure, such as interconnection or storage investments associated with grid-connected projects. Leveraged funding is defined as the estimated cash or monetized value of in-kind inputs from ICED II project implementation partners. The type of leveraging depends on the activity and includes, but is not limited to, the following:

• Project financing (capital investment – debt, equity, and grants from ICED II partners)


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• Pre-development studies (e.g., cost sharing of pre-feasibility and feasibility studies, environmental impact assessments)

• Government budget allocations • Commitment of funding for clean energy (e.g., a new private or public sector fund).

In achieving its financial leverage target, ICED II focuses on private sector engagements. Financial leverage from the private sector is defined as the value of transactions closed for clean energy and/or energy efficiency projects that received ICED II support. ICED II focuses on projects for which most of the pre-development studies have been done, have applied for or already signed a PPA, or are applying for financing. Developers/project sponsors, PLN and banks are targeted for assistance. ICED II assists clean energy projects proportionally to their potential to contribute to the leveraged investment target. In other words, more resources are applied to projects with a larger total investment. Financial leverage from the public sector is realized by co-investment by ICED II government and/or donor partners. This investment comes in the form of budget spending on collaborative programs. For programmatic policy activities, ICED II focuses on collaborative efforts with other donors to increase the “success factors” of program impacts and risk sharing. Access to public sector budget co-investments poses a challenge as it concerns organizations’ internal policy and transparency.

As of September 30, 2019, ICED II reported $1,577.6 million of investment mobilized from public and private sources with U.S. Government assistance. This represents 197.2 percent of the target versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 3: Number of Beneficiaries with Improved Energy Services due to USG Assistances Access to clean energy is calculated using two approaches: 1) estimated electric utility customers’ demand met through the production of electricity from grid-connected renewable energy projects and 2) captive industrial projects and remote, not-interconnected renewable energy applications. For grid-connected clean energy systems (including both electricity generated from renewable energy projects and electricity saved through energy efficiency and conservation projects), access is defined by households connected to the PLN distribution system. For captive power industrial applications, access is defined as the number of persons employed at the industrial facility. For non-grid connected rural communities, access is defined as those persons in the community benefiting from energy produced by the clean energy project. Household energy systems only provide access to the individuals living in the household. Community energy systems provide access to all persons in the community, as well as schools, community centers, etc. Micro-enterprise applications provide access to the full- and part-time employees of the enterprise. Local government, PLN or licensed utility operator investments in distribution infrastructure and that receive ICED II assistance (such as GIS mapping) also contribute to the persons with access to clean energy, as long as some or all of the electricity is generated by renewable energy sources. For projects or programs that ICED II assists, the number of persons who will have access to clean energy is calculated at the outset. ICED II assists clean energy projects proportionally to their potential to contribute to the leveraged investment target. In other words, we apply more resources to projects with a larger total investment.


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In addition to assisting specific projects, ICED II supports national and local governments’ efforts to increase access to electricity services. This is done through the PLEA7 program, and later through the provincial RUEDs.

As of September 30, 2019, ICED II reported 1,854,960 of the target 5 million persons with improved access to clean energy with U.S. Government assistance. This represents 37.1 percent of the target versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 4: Number of Institutions with Improved Capacity to Address Clean Energy Issues as Supported by USG Assistance The ICED II Project takes a “programmatic” approach to implementing clean energy policies. This approach requires a clear roadmap, regulations, guidance and administrative procedures, and capable institutions to effectively fulfill their administrative responsibilities. ICED II works with units within national, regional/local government authorities (such as departments, directorates, subsidiaries, and branch offices), and public and private entities that receive training based on their administrative responsibilities. The project also provides training and technical assistance to improve the capacity of financial institutions to review and process clean energy financing applications.

As of September 30, 2019, ICED II reported 34 institutions with improved capacity to address climate change, against a target of 20. This represents 170 percent of the target versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 5: Number of Laws, Policies, Regulations or Standards Addressing Clean Energy Formally Proposed, Adopted, or Implemented as Supported by USG Assistance ICED II is designed to help establish or improve the framework for clean energy development in Indonesia. As such, it works with various national and regional government authorities to provide input to their laws, policies, strategies, plans, agreements and regulations related to clean energy development and GHG emissions from the energy sector. ICED II monitors the status of the laws, policies, strategies, plans, agreements and regulations it has assisted through the various stages of formalization: officially proposed, adopted, and implemented. Experience has shown that the final outcome is a product of the process used to develop it, and that there is sensitivity within government institutions regarding the influence of foreign donor projects. For these reasons, ICED II attempts to facilitate the process (e.g., seeking input from experts and regulated industry) and provides advice based on what it believes will be most effective.

As of September 30, 2019, ICED II reported 47 as compared to the target 20 laws, policies,

7 Planning for Energy Access (PLEA) is an initiative of ICED II which resulted in the creation of databases, GIS mapping, guidelines and tools that have been incorporated into government electricity access programs.


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strategies, plans, or regulations officially proposed, adopted, or implemented as a result of U.S. Government assistance. This represents 235 percent of the target versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 6: Clean Energy Generation Capacity Installed or Rehabilitated as a Result of USG Assistance Clean energy generating capacity is measured using two methods. The first is the installation or rehabilitation of renewable energy generating facilities. The second is support to an individual renewable energy project or government program that results in increased renewable energy for electricity generation. Examples of the latter include technical support to PLN in implementing its RUPTL, through ICED II-supported guidelines for interconnection studies, capacity quota estimates, and feasibility study reviews. The ICED II clean energy generation capacity target will be achieved through the following interventions:

• Continue to support and monitor projects that reached financial closure during ICED, i.e., the 17 projects that closed, with a combined generating capacity of 117 MW.

• Assist renewable energy projects that will complete construction within the ICED II project life (2020). Hydropower projects have a project development cycle of 3-5 years; biomass, biogas and wind power projects, 2-3 years; and solar PV projects, 1-2 years. Understanding the construction period for each project type enables ICED II to forecast when projects that have achieved financial closure (Indicator 2) will begin operating.

ICED II prioritizes and concentrates its resources on projects that meet the following criteria: 1) projects with a high likelihood of success (e.g., sponsor, technical and economically feasible, critical for energy supply), 2) projects with larger generating capacity, and 3) projects that are further along in the development cycle (e.g., with or applying for a PPA). In addition to assisting project developers, ICED II works with its partners – MEMR, PLN, banks and financial institutions – to facilitate projects that they are already reviewing and are seeking an independent “second” opinion prior to making a decision.. ICED II’s assistance on grid-connected renewable energy programs requires a systematic approach. It seeks to intervene at the planning stage by supporting the underlying analysis through modeling or other research. ICED II also supports the preparation of regulations or programmatic guidelines and provides capacity building to the institution(s) responsible for implementing the regulation or guidelines, including monitoring the results.

As of September 30, 2019, ICED II reported 299.04 MW out of a target of 400 MW of clean energy generating capacity with U.S. Government assistance. This represents 74.8 percent of the target versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 7: Proportion of Females Who Report Increased Self-Efficacy at the Conclusion of USG-Supported training/Programming


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In FY 2019, ICED II produced a Gender Action Plan and conducted gender self-efficacy (GSE) surveys at various training sessions and workshops. The GSE aims to evaluate the level of competence of training participants. It is part of the Gender Efficacy Performance Indicator, whose objective is to gauge the effectiveness of empowering women through USAID programming across a wide variety of projects. ICED II applied GSE in 22 of the 46 trainings and workshops it held in FY 2018. These 22 trainings had more than two female participants and were organized or co-organized by ICED II, or were organized by other parties with ICED II staff serving as resource persons. At the latter, ICED II disseminated the survey with the permission of the training and workshop organizers. Thirty trainings and workshops did not receive the GSE survey because they either had no female participants, were not sponsored by ICED II, the sponsor did not approve the survey’s dissemination, and/or were not in the format of formal training. The results of the GSE surveys varied. Of the 22 trainings and workshops, female participants in 15 events reported they had increased capacity and knowledge as a result of the trainings, that the trainings had a positive impact on their work, and that after attending the training, they were better prepared to be more effective in their position.

Table 7. Results of GSE Surveys in ICED II Trainings and Workshops (redacted)

In seven of the trainings and workshops, less than 100 percent of female participants perceived they had increased capacity and knowledge or were better prepared to be more effective in their positions (see Table 9).

Table 9. Result of GSE Survey is Less than 100 percent in ICED II Trainings and Workshops No. Event Title Date Percentage

1 BCA Green Banking - Sustainable Financing, in Jakarta

November 9, 2018 95%

2 Workshop on Strengthening Off-grid Solar Photovoltaic Feasibility Studies to Enhance Rural Electrification, in Bali

February 21-22, 2019 86%

3 FGD on the Utilization of Biofuels for the Power Generation Sector in Indonesia, in Jakarta

April 11, 2019 67%

4 National Workshop on GHG Mitigation Actions in the Power Generation Sector, in Jakarta

May 3, 2019 90.5%

5 Training for PLN on Guidelines for Reviewing Interconnection Studies - Batch 1, in Surabaya.

July 22-26, 2019 87.5%

6 Environment and Social Risks Aspects (ESRA) Training with Financial Services Authority (OJK): Case Studies on Mini-Hydro Powerplants (in collaboration with OJK Institute), in Yogyakarta.

August 5-8, 2019 91.7%


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No. Event Title Date Percentage 7 Individual Training for Bank Negara

Indonesia (BNI) on Mini-Hydro Projects in Jakarta.

August 29-30, 2019 90%

As of September 30, 2019, ICED II administered GSE surveys in 50 out of 136 trainings and workshops. Ninety-three percent of the female participants perceived they had increased capacity and knowledge as a result of ICED II trainings, that the trainings had a positive impact on their work, and that after attending the training, they were better prepared to be more effective in their positions.

Indicator 8: Clean Energy Generation Capacity Supported by USG Assistance that has Achieved Financial Closure This Global Climate Change (GCC) indicator is designed to capture the results of assistance to renewable energy projects that have met a critical milestone in the development process. Financial closure reflects the sponsor’s and/or lender’s commitment to complete the project. It comes after extensive studies, the issuance of applicable permits and licenses, and in some instances, deposit of a security fee (up to 10 percent of the project value). For grid-connected projects, it comes approximately one year after the project has a power purchase agreement. For example, ICED assisted clean energy projects with 117 MW of generating capacity to achieve financial closure. This capacity was not incorporated in the ICED results for installed capacity. Since ICED II has a five-year life, it is expected that many projects will achieve financial closure but will not complete construction before 2020. This indicator will ensure that the generating capacity is included in the results for all projects ICED II assists that at least reach the stage of financial closure. The ICED II target for generating capacity of projects that achieve financial closure is directly linked to the performance indicator of investment mobilized for clean energy as it relates to renewable energy projects assisted directly or indirectly through ICED II programmatic support.

As of September 30, 2019, ICED II reported 559.6 MW of clean energy generating capacity that has reached financial close against a target of 400 MW. This represents 139.9 percent of the target versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 9: Projected GHG Emissions Reduced or Avoided through 2030 from Adopted Laws, Policies, Regulations, or Technologies Related to Clean Energy as Supported by USG Assistance To achieve this target, ICED II works at the project and program levels. At the project level, it supports renewable energy and energy efficiency project developers. At the program level, it supports clean energy policies and actions, such as Nationally Appropriate Mitigation Actions, National and Regional Energy Planning (RUEN/RUED), National and Local Action Plans for Reducing Greenhouse Gas Emissions (RAN/Rad-GRK), PLEA, renewable energy power plant interconnection guidelines, solar PV regulations, energy efficiency or renewable energy policies, regulations and


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standards, GHG reporting programs, emissions-trading programs, and deployment of technologies that result in emission reductions. The approach is similar to that of Indicator 1 for GHG emissions reduced or avoided (see above). The main difference is that this indicator projects the emissions reduced or avoided up to 15 years in the future, i.e., until 2030.

As of September 30, 2019, ICED II reported a projection of 39,699,758 tons of GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations or technologies related to clean energy. This represents 147 percent of the target (27 million tons) versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 10: Number of People Trained in Clean Energy Supported by USG Assistance ICED II provides capacity building to a variety of stakeholders including, but not limited to, private project developers, banks and financial institutions, PLN, ministries and agencies at the national level, government agencies at the provincial, municipal and even regency levels, and consultants, representatives of non-governmental organizations and academia. It is also possible that, over the life of ICED II, it may support the creation of community-based rural electric cooperatives operating licensed micro-utilities. ICED II sees a significant capacity building need at all levels. The demand for professional (and technical) training among ICED II stakeholders far exceeds the financial and human resources available. Therefore, our strategy to achieve this target is to integrate capacity building into the policy, planning and technical assistance activities to leverage ICED II assistance toward achieving other targets. Furthermore, ICED II works with institutions that are established to provide training in energy, financing, and climate change. These include MEMR and PLN training centers, financial institution training centers, universities, associations and professional societies. Trainings are offered through one or more of these institutions with the aim of transferring the course materials to the institutions that will continue to offer the course without ICED II support. This “training the trainers” approach will achieve results that have the potential to far exceed the target if successfully adopted by partner institutions.

As of September 30, 2019, ICED II reported that 6,502 people had received training in global climate change as a result of USG assistance. This represents 130 percent of the target (5,000 persons) versus 85 percent of the time in the ICED II life of project (60 months).

Indicator 11: Expected Lifetime Energy Savings from Energy Efficiency or Energy Conservation as a Result of USG Assistance ICED II was designed with energy efficiency being a lower priority than renewable energy in terms of the allocation of resources. Following on the experience from ICED, ICED II does not anticipate supporting individual energy efficiency projects except where they have a high potential to contribute to mobilized financing and/or GHG emission reduction results. Instead, ICED II works at the programmatic level for energy efficiency, whereby our assistance has the potential to result in the wide-scale adoption of new technologies.


37

As of September 30, 2019, ICED II reported 752,629 GJ of energy savings over the life of energy efficiency projects that were installed during ICED. This represents 27 percent of the target (2.8 million GJ) versus 85 percent of the time in the ICED II life of project (60 months).


38

4. ANNEXES

Annex A. Performance Indicator Results against Targets

ICED Indicator 1: (GCC Indicator EG. 12-6) Greenhouse gas (GHG) emissions, estimated in metric tons of CO2 equivalent, reduced, sequestered, or avoided through clean energy activities supported by USG assistance. Units: Metric tons of CO2e reduced or avoided Performance Indicator Values Results Data

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Project to Date

(Cumulative)

ICED II Target

Annual Target

40,000.0 250,000.0 264,000.0 630,000.00 610,000.00 1,794,000.00 4,500,000

Total Actual

37,245.2 3,551,760.2

438,342.4 595,355.07 884,248.47 5,506,951.4

ICED Indicator 2: (GCC Indicator EG. 12-4) Amount of investment mobilized (in USD) for clean energy as supported by USG assistance Unit: USD Performance Indicator Values Results Data

FY 2015

FY 2016 FY 2017 FY 2018 FY 2019 Project to Date

(Cumulative)

ICED II Target

Annual Target

-- 175,800,000 261,900,000 200,000,000 150,000,000 787,700,000 800,000,000

Total Actual

0 397,899,068 332,360 806,400,715 40,968,572 1,577,628,355

ICED Indicator 3: (GCC Indicator EG 7.1-1) Number of beneficiaries with improved energy services due to USG assistance Unit: Number of people Performance Indicator Values Results Data

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Project to Date (Cumulative)

ICED II Target

Annual Target

100,000 300,000 710,000 1,500,000 1,500,000 4,110,000 5,000,000

Total Actual

18,848 205,505 501,419 663,626 465,562 1,854,960


39

ICED Indicator 4: (GCC Indicator EG. 12-2) Number of institutions with improved capacity to address clean energy issues as supported by USG assistance Unit: Number of Institution Performance Indicator Values Results Data


ICED II Target

Annual Target

-- 5 5 5 5 20 20

Total Actual

0 0 31 2 1 34

ICED Indicator 5: (GCC Indicator EG. 12-3) Number of laws, policies, regulations, or standards addressing clean energy formally proposed, adopted, or implemented as supported by USG assistance Unit: Number of laws, policies, strategies, plan, or regulations Performance Indicator Values Results Data


ICED II Target

Annual Target

-- 4 6 5 5 15 20

Total Actual

0 4 21 7 15 47

ICED Indicator 6: Clean energy generation capacity installed or rehabilitated as a result of USG assistance Unit: Megawatt (MW) Performance Indicator Values Results Data


ICED II Target

Annual Target

3 98 206 133 173.45 613.45 400

Total Actual

2.05 20.4 66.29 103.3 107 299.04

ICED Indicator 7: Proportion of females who report increased self-efficacy at the conclusion of USG supported training/programming Unit: Percentage of female (%) Performance Indicator Values Results Data


ICED II Target

Annual Target

70% 70% 70% 70% 70% 70% 70%

Total Actual

0 50% 97% 96% 96.3% 93%


40

ICED Indicator 8: (GCC Indicator EG. 12-5) Clean energy generation capacity supported by USG assistance that has achieved financial closure Unit: Megawatts (MW) Performance Indicator Values Results Data


ICED II Target

Annual Target

8 131 103 90 90 422 400

Total Actual

0 176 103.3 257.3 23 559.6

ICED Indicator 9: (GCC Indicator EG. 12-7) Projected greenhouse gas (GHG) emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean energy as supported by USG assistance Units: Millions of metric tons of CO2e reduced or avoided Performance Indicator Values Results Data

FY 2015 FY 2016 FY 2017 FY 2018 FY 2018 Project to Date

(Cumulative)

ICED II Target

Annual Target

80,000 900,000 3,450,000 7,630,000 3,270,000 15,330,000 27,000,000

Total Actual

1,340,828 28,562,134 4,147,098 3,205,134 2,444,564.73

39,699,758

ICED Indicator 10: (GCC Indicator EG. 12-1) Number of people trained in clean energy supported by USG assistance Unit: Number of people Performance Indicator Values Results Data


ICED II Target

M F M F M F M F M F M F Annual Target

300 1,500 1,500 900 900 5,100 5,000

Total Actual

230 66 941 325 890 331 1,181 547 1,462 529 4,704 1,798

ICED Indicator 11: Expected lifetime energy savings from energy efficiency or energy conservation, as a result of USG assistance Unit: Gigajoules (GJ) Performance Indicator Values Results Data


ICED II Target

Annual Target

56,000 168,000 440,000 440,000 1,640,000 2,744,000 2,800,000

Total Actual

702,019 50,611 0 0 0 752,629


41

Annex B. Reference Information for Performance Indicators and Results Note that the only ICED II activities included in this annex are those that contributed to results reported during the fiscal year (i.e., October 1, 2018 to September 30, 2019). Each clean energy projects contribute to multiple results. At the time of financial close, the project contributes to the mobilized investment result. At the time of commissioning, it contributes to the installed capacity and persons with access results. After commissioning the project begins commercial operations and contributes to the reduced or avoided greenhouse gas emissions associated with the energy it produces during the reporting period.

Table B-1. Summary of Projects Contributing to Performance Indicators (redacted)


42

Table B-2 Summary of Energy Efficiency Projects Contributing to Performance Indicator

(redacted)


43

B.1 Projects Assisted

(Redacted)


44

B.2 Programmatic Support

Energy sector of RAD-GRK 2015 Program owner Bappenas Avoided GHG emissions (tons CO2e) from January-December 2015 92,747

Projected GHG emissions (tons CO2e) reduced or avoided through 2030

741,976

Description of technical assistance Since 2015, has actively engaged in providing technical assistance in energy sector and co-funding events:

• RAD-GRK review on BAU baseline revision. • MER Guidelines development and

dissemination • Updating of MER guidelines, which have

been used to calculate emission reductions in 2015 for the province.

M&E: Date of Verification August 2016 M&E: Means of Verification Letter of acknowledgement from Secretariat RAN-

GRK number: 13/RANGRK/08/2016

Energy sector of RAN-GRK 2015 Program Owner Bappenas Avoided GHG emissions (tons CO2e) from January-March 2017 3,323,763

Projected GHG emissions (tons CO2e) reduced or avoided through 2030 26,590,107.2

Description of technical assistance The MER that was planned to calculate the emission reduction for RAN-GRK activities has not been fully completed. Thus, the MER ICED developed for the RAD-GRK was used to calculate the emission reductions resulting from RAN-GRK activities.

M&E: Date of Verification August 2016

M&E: Means of Verification Letter of acknowledgement from Secretariat RAN-GRK number: 13/RANGRK/08/2016


45

B.3 Institutions Strengthened (redacted)

B4. Laws, Policies, Plans, Strategies, or Standards Proposed, Adopted or Implemented

(redacted) B.5 Training

Table B.5.1. Training Summary until Fiscal Year 2019 (redacted)


46

Table B.5.2. ICED Results: May 2015-September 2019

Indicator/

Target

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Project to Data

(Cumulative) Q1 Q2 Q3 Q4 Total

Indicator 1 (EG. 12-6): Greenhouse gas (GHG) emissions, estimates in metric tons of CO2 equivalent, reduced, sequestered or avoided through clean energy as supported by USG assistance (Metric tons of CO2e reduced or avoided)

4,500,000 37,245.2 3,551,760.2 438,342.4 595,355.07 182,147.3 230,450.8 248,753.2 210,752.3 884,248.47 5,506,951.4

Indicator 2 (EG. 12-4): Amount of investment mobilized (in USD) for clean energy as supported by USG assistance (USD)

800,000,000 0 397,899,068 332,360,00

0 806,400,715

11,071,429 29,897,143 - - 40,968,572 1,577,628,355

Indicator 3 (EG. 7.1-1): Number of beneficiaries with improved energy services due to USG assistance (number of people)

5,000,000 18,848 205,505 501,419 663,626 - 71,663 107,190 286,709 465,562 1,854,960

Indicator 4 (EG. 12-2): Number of institutions with improved capacity to address clean energy issues as supported by USG assistance (Institutions)

20 0 0 31 2 - - - 1 1 34

Indicator 5 (EG. 12-3): Number of laws, policies, regulations, or standards addressing clean energy formally proposed, adopted, or implemented as supported by USG assistance (Number of laws, policies, strategies, plan, or regulations)

20 0 4 21 7 3 1 - 11 15 47

Indicator 6: Clean energy generation capacity installed or rehabilitated as a result of USG assistance (Megawatt)

400 2.05 20.40 66.29 103.3 - 8 11 88 107 299.04


47

Indicator/

Target

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Project to Data

(Cumulative) Q1 Q2 Q3 Q4 Total

Indicator 7: Proportion of females who report increased self-efficacy at the conclusion of USG supported training/programming (Percentage of females)

70% 0% 50% 97% 96% 98% 98% 94% 95.6% 96.3% 93%

Indicator 8 (EG.12-5): Clean energy generation capacity supported by USG assistance that has achieved financial closure (Megawatt)

400 - 176.00 103.30 257.30 10 13 - - 23 559.6

Indicator 9 (EG. 12-7): Projected greenhouse gas (GHG) emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean energy as supported by USG assistance (Millions of metric tons of CO2e reduced or avoided)

27,000,000 1,340,827.7 28,562,133.

6 4,147,097.6 3,205,134.43 - 502,356.5 587,876.7 1,354,331.5

2,444,564.73 39,699,758

Indicator 10 (EG. 12-1): Number of people trained in clean energy supported by USG assistance (Number of people)

5,000 296 1,266 1,221 1,728 347 241 606 797 1,991 6,502

Indicator 11: Expected lifetime energy savings from energy efficiency or energy conservation, as a result of USG assistance (Gigajoules)

2,800,000 702,019 50,611 - - - - - - - 752,629


48

Annex C. ICED II Project Deliverables

No. Title (in alphabetical order) Prepared for

1 Guidelines for Reviewing Biomass Power Feasibility Studies (book, evaluation form, guidelines)

PLN

2 Guidelines for Reviewing Biogas Power Feasibility Studies (book, evaluation form, guidelines)

PLN

3 Guidelines for Reviewing Waste-to-Electricity Power Feasibility Studies (Book, Evaluation Form, Guidelines)

PLN

4 Evaluation Form using Microsoft Excel for Solar PV Feasibility Studies

PLN

5 Revision of Renewable Energy Generation Plant (REGP) Interconnection Guidelines and the Development of Review Guidelines for REGP’s Interconnection Study

PLN

6 Inputs on Sulawesi Grid Code Revision PLN 7 Inputs on Java-Bali and Sumatra Grid Code Revision PLN 8 Inputs on PLN’s Board of Director’s Regulation Number 22.

Year 2017 on Renewable Energy Procurement PLN

9 Guidelines on Updating Geospatial Mapping of 20 kV Electricity Network

PLN North Sumatra Region, PLN Aceh Region

10 Book on Portrait of Electricity Ongoing 11 Guidelines on Mapping of Regional Electrification Data using

Geospatial Approach Ongoing

12 Guidelines on Electrification Planning using Geospatial Approach

Ongoing

13 Solar PV Feasibility Study Guidelines MEMR

14 Guidelines on GHG Mitigation MER in Power Sector MEMR

15 Draft Report of Samosir’s Survey Results MEMR Office North Sumatra Province & Bappeda North Sumatra

16 Pre-Feasibility Study Draft on Solar PV Pumps in Sitoluhuta/Panampangan

Ongoing

17 Inputs for the Draft Regulation on the RUED of North Sumatra Province

Ongoing

18 Inputs for the Draft Regulation on the RUED of North Sumatra Province

Ongoing

19 Inputs for the Draft Regulation on the RUED of South Sulawesi Province

Ongoing

20 PPA Evaluation for Financial Service Institution (book and checklist guidelines)

OJK

21 Concept Note: Development of PV Solar Rooftop in West Java Public Buildings

PT Sarana Multi Infrastruktur

22 Revision of Appendix on AC Split of MEMR Regulation on Implementation of MEPS and Labelling for Energy Efficiency Equipment

MEMR (Ongoing)

23 Rooftop Solar PV Power Economic Impact Study Report PLN & MEMR (Ongoing) 24 Guidelines on GHG Emission Mitigation Actions MEMR (Ongoing)


49

25 Inputs on Benchmarking Performance and GHG Emission MEMR (Ongoing) Annex D. ICED II External Events, FY 2019 ICED staff organized, participated in roles, and attended 35 events organized by Indonesian and U.S. public and private sector organizations, as well as the events of other donors.

(redacted)


50

Annex E. ICED II Detailed Training Activities, FY 2019

No. Date Title of Training Event Related Component/ Work Stream

Training Type Location Participants Organizer / ICED II Support Male Female Total Group

October – December 2018 1 October 23-

25, 2018 National Workshop on Low Carbon Development for Energy Sector

Component 1 Workshop JW Marriot Hotel, Yogyakarta

17 9 26 ICED II, MEMR, EMR Provincial office, UNDP, GIZ-PAKLIM

Facilitator

2 October 30, 2018

One Day Seminar on Implementation of SNI-ISO 16538-1 for Energy Efficiency Improvements in the Residential and Commercial Air Conditioning Sector Program

Component 2 Seminar, Discussion

Morrissey Hotel, Jakarta

29 0 29 USAID, ICED II, ASHRAE, Stakeholders, DKE of MEMR, AC companies

Co-Organizer with ASHRAE; funded by ICED II

3 November 9, 2018

BCA Green Banking Training batch 2

Component 1 Training Santika Hotel, Jakarta

22 20 42 ICED II, MOEF, private banks

Funded by BCA

4 November 21-23, 2018

Training for PLN on Guidelines to Review Bioenergy Power Project Feasibility Studies

Component 2 Training Fairfield Hotel by Marriot, Belitung

24 5 29 USAID, ICED II, PLN, MEMR, ANJ/AANE

Organizer

5 November 28-30, 2018

Workshop on 70 PPAs of New and Renewable Power Plant Reviews

Component 2 Workshop PLN, North Sumatra

22 2 24 ICED II, PLN, PLN Sumatra region

Facilitator


51



6

December 5, 2018

Consultation Meetings on Terms of Reference for Economic Impact Study for Rooftop Solar PV Policy and Program in Indonesia with NREL

Component 2 Consultation Meeting

Ambhara Hotel, Jakarta

24 7 31 USAID, ICED II, PLN,

Organizer

7 December , 2018

Consultation Meetings on Terms of Reference for Economic Impact Study for Rooftop Solar PV Policy and Program in Indonesia with NREL

Component 2 Consultation Meeting

ICED Office 10 5 15 USAID, ICED II, DG EBTKE of MEMR

Organizer

8 December 12, 2018

Technical Advice to PLN and Knowledge Sharing on Power System Operations and California Key Success Factors on Renewable Energy Development

Component 1 Component 2

Sharing Knowledge CAISO

DGK 46 16 62 USAID, ICED II, DJK of MEMR, Biro KLIK, PLN, PLN EBT

Organizer

January – March 2019 9 January 22,

2019 Seminar on Implementation of SNI-ISO 16538-1 for New Minimum Energy Performance Standard in the Air Conditioning Sector

Component 2 Seminar Double Tree Hotel by Hilton Jakarta

5 18 23 USAID, ICED II, DKE of MEMR, ITB, ASHRAE, Agency for the Assessment and Application of Technology

Organizer, Facilitator, Resource Person


52



(BPPT), AC Association and International and local AC companies

10 February 21-22, 2019

Workshop on Strengthening Off-grid Solar Photovoltaic Feasibility Studies to Enhance Rural Electrification

Component 2 Workshop Swisbell Hotel Bali

8 18 26 USAID, ICED II, Directorate Aneka Energi, DG EBTKE, EMR provincial office


11 February 27-28, 2019

Discussion on Sulawesi Grid Code Draft Document

Component 2 Meeting PLN Pontianak, West Kalimantan

1 12 13 ICED II, PLN Facililtator, Resource Person

12 February 27-March 1, 2019

Training for Perusahaan Listrik Negara (PLN) on Guidelines to Review Bioenergy Power Project Feasibility Studies

Component 2 Workshop Aston Hotel Pontianak

9 28 37 USAID, ICED II, PLN Regional, PLN EBT, PLN Training Division, PLN System Planning, PLN HQ, PLN Legal, MEMR DKE


13 March 4-8, 2019

Training Workshop for State Electricity Company (PLN) on Methodologies of Interconnection System and Grid Integration Study of Variable Generation Resources, and Transmission

Component 2 Workshop Melia Purosani Hotel Jogja




53



System Planning and Analysis

14 March 12-13, 2019

Electrification Planning Training and Workshop for PLN Regions and Energy and Mineral Resources Office of North Sumatra Province

Component 1 Workshop Santika Hotel Medan, North Sumatra

5 52 57 USAID, ICED II, PLN Regional Office of North Sumatra, EMR Office of North Sumatra Province, DG EBTKE,


15 March 18-20, 2018

Finalization of Kalimantan Grid Code Document and Preparation Meeting on Plenary KMAJ



16 March 19, 2019

Second Focus Group Discussion on Implementation of SNI-ISO 16538-1 for New Minimum Energy Performance Standard in Air Conditioning Sector

Component 2 FGD Double Tree Hotel by Hilton Jakarta

2 25 27 USAID, ICED II, DKE of MEMR, ITB, ASHRAE, Agency for the Assessment and Application of Technology (BPPT), AC Association and International and local AC companies


April – June 2019 17 January 22,

2019 Seminar on Implementation of SNI-ISO 16538-1 for New Minimum Energy

Component 2 Seminar Double Tree Hotel by Hilton Jakarta

5 18 23 USAID, ICED II, DKE of MEMR, ITB, ASHRAE, Agency for the



54



Performance Standard in the Air Conditioning Sector

Assessment and Application of Technology (BPPT), AC Association and International and local AC companies

18 February 21-22, 2019

Workshop on Strengthening Off-grid Solar Photovoltaic Feasibility Studies to Enhance Rural Electrification

Component 2 Workshop Swisbell Hotel Bali

8 18 26 USAID, ICED II, Directorate Aneka Energi, DG EBTKE, EMR provincial office


19 February 27-28, 2019

Discussion on Sulawesi Grid Code Draft Document



20 February 27-March 1, 2019

Training for PLN on Guideline to Review Bioenergy Power Project Feasibility Studies

Component 2 Workshop Aston Hotel Pontianak



21 March 4-8, 2019

Training Workshop for PLN on Methodologies of Interconnection System and Grid Integration Studies of Variable Generation

Component 2 Workshop Melia Purosani Hotel Jogja

3 46 49 USAID, ICED II, PLN Regional, PLN EBT, PLN Training Division, PLN System Planning,



55



Resources, and Transmission System Planning and Analysis

PLN HQ, PLN Legal, MEMR DKE

22 March 12-13, 2019

Electrification Planning Training and Workshop for PLN Region and Energy and Mineral Resources Office of North Sumatra Province

Component 1 Workshop Santika Hotel Medan, North Sumatra

5 52 57 USAID, ICED II, PLN Regional Office of North Sumatra, EMR Office of North Sumatra Province, DG EBTKE,


23 March 18-20, 2018

Finalization Kalimantan Grid Code Document and Preparation Meeting on Plenary KMAJ



24 March 19, 2019

Second Focus Group Discussion on Implementation of SNI-ISO 16538-1 for New Minimum Energy Performance Standard in the Air Conditioning Sector

Component 2 FGD Double Tree Hotel by Hilton Jakarta

2 25 27 USAID, ICED II, DKE of MEMR, ITB, ASHRAE, Agency for the Assessment and Application of Technology (BPPT), AC Association and International and local AC companies


July – September 2019 25 July 4-5, 2019

Focus Group Discussion 1 on the Development of National

Component 2 FGD Hotel Grand Savero, Bogor

6 30 36 Directorate of Energy Conservation,



56



Competence Standard (SKKNI) for Measurement and Verification of Energy Efficiency Projects

Directorate General of New and Renewable Energy and Energy Conservation (DG EBTKE) of Ministry of Energy and Mineral Resources (MEMR)

26 July 22-26, 2019

Training for PLN on Guidelines to Review Interconnection Studies - Batch 1

Component 2 Workshop Sheraton Hotel, Surabaya

8 45 53 PT.PLN-Energi Baru Terbarukan (EBT) Division.


27 July 29, 2019 Focus Group Discussion on Guidelines for Measurement and Reporting on GHG Emission Reductions from the Power Generation Sector - Batch 3

Comp. 1 Comp. 2

FGD Margo Hotel, Depok

3 31 34 Directorate General of Electricity (DJK) and United Nations Development Programme - Market Transformation Through Renewable Energy and Energy Efficiency (UNDP - MTRE3)


28 July 30-31, 2019

Focus Group Discussion 2 on the Development of National

Component 2 FGD Swissbell Hotel, Bogor

6 21 27 Directorate of Energy Conservation,



57



Competence Standard (SKKNI) for Measurement and Verification of Energy Efficiency Projects

Directorate General of New and Renewable Energy and Energy Conservation (DG EBTKE) of Ministry of Energy and Mineral Resources (MEMR)

29 July 30-31, 2019

Advanced Electrification Planning Training and Workshop for PLN Regional and Energy and Mineral Resources (EMR) Office of North Sumatra (NS) Province

Component 1 Workshop Aryaduta Hotel, Medan

11 44 55 PLN Regional and EMR Office NS


30 August 5-8, 2019

Environment and Social Risks Aspects Training with OJK: Case Studies on Mini Hydro Power Plants (in collaboration with OJK Institute)

Component 2 Training JW Mariott Hotel, Yogya

12 29 41 OJK Institute Organizer, Facilitator, Resource Person

31 August 8, 2019

Focus Group Discussion on Economic and Technical Impacts Study of Rooftop Solar PV

Component 2 FGD The Double Tree by Hilton, Jakarta

14 34 48 PT. PLN (Persero) UID Jakarta Raya and Directorate General of New and Renewable Energy and



58



Energy Conservation - Directorate of Various Energy (Aneka Energi) of Ministry of Energy and Mineral Resources (MEMR).

32 August 14, 2019

Site Visit to PLTU Muara Karang with DJK and MEMR

Component 2 Site Visit PLTU Muara Karang, Jakarta

1 17 18 PJB UPMKR, BPPT, Ditjen Gatrik, DJK


33 August 15, 2019

Meeting on Benchmarking Performance & GHG Emissions

Component 2 Meeting Paiton Resort Hotel, East Java

7 17 24 DJK, GGGI, PJB, PE/POMI, PLTU Paiton, Developer


34 August 15, 2019

Meeting on Benchmarking Performance & GHG Emissions with PT.POMI

Component 2 Meeting PT. POMI, Paiton, East Java

1 9 10 DJK, PT. POMI Organizer, Facilitator, Resource Person

35 August 19-23, 2019

Training for PLN on Guidelines to Review Interconnection Studies - Batch 2

Component 2 Workshop Fairmont Hotel, Bali

8 41 49 PT. PLN-Energi Baru Terbarukan (EBT) Division.


36 August 20, 2019

Seminar on New Indonesia Minimum Energy Performance Standard in the Air Conditioning Sector

Component 2 Seminar The Double Tree by Hilton, Jakarta

8 29 37 Directorate Energy Conservation (Direktorat Konservasi Energi - DKE) of Ministry of



59



Energy and Mineral Resources (MEMR) and American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Chapter Indonesia

37 August 26-27, 2019

Consultation Meetings – PLN Distribution System Planning Guidelines Development

Component 2 Meeting Meeting Room PT. PLN (Persero) UP3 Malang

13 16 29 PT. PLN Persero) - Directorate of Corporate Planning


38 August 27-28, 2019

Focus Group Discussion 3 on the Development of National Competence Standard (SKKNI) for Measurement and Verification of Energy Efficiency Projects

Component 2 FGD Swissbell Hotel, Bogor

5 18 23 Directorate of Energy Conservation, Directorate General of New and Renewable Energy and Energy Conservation (DG EBTKE) of Ministry of Energy and Mineral



60



Resources (MEMR)

39 August 29, 2019

Renewable Energy 4.0: A Youth Perspective

Component 3 Outreach @America, Jakarta

51 76 127 Coaction Indonesia


40 August 29-30, 2020

Individual Training for Bank Negara Indonesia (BNI) on Mini-Hydro Projects

Comp. 2 Training BNI University, Jakarta

11

17 28 ICED II, OJK,BNI Facilitator

41 August 30, 2019

Focus Group Discussion on Guidelines Measurement and Reporting on GHG Emission Reduction from the Power Generation Sector - Batch 3

Comp. 1 Comp. 2

FGD Alana Hotel, Sentul, West Java

5 13 18 Directorate General of Electricity (DJK) and United Nations Development Programme - Market Transformation Through Renewable Energy and Energy Efficiency (UNDP - MTRE3)


42 September 2-5, 2019

Workshop Transformation from Local Action Plan for Low Emission Development (RAD-GRK) into Low Carbon Development Plan

Component 1 Workshop JW Mariott Hotel, Medan

51 78 129 National Development Planning Agency (Badan Perencanaan Pembangunan Nasional or



61



(PPRKD) for Western Region Indonesia

Bappenas), National Action Plan for Low Emission Development Secretariat (RAN-GRK Secretariat)

43 September 10, 2019

Progress Meeting Benchmarking Performance and GHG Emission

Component 1 Meeting DJK office, Jakarta

2 9 11 DJK, GGGI, KNI-WEC


Sub Total Participants

529 1,462 1,991

Documents

INDONESIA CLEAN ENERGY DEVELOPMENT II ... - pdf.usaid.gov