Final Report: Indonesia Energy Regulatory Partnership

The partnership was supported by the United States Agency for International Development (USAID) and implemented by the National Association of Regulatory Utility Commissioners (NARUC) from May 2021 to September 2022. The program aimed to improve regulatory oversight and promote the Clean EDGE Asia goals of improving utilities' capacity and readiness, increasing the deployment of clean energy technologies, promoting transparent, best value procurement, and enhancing regional energy trade and integration. The partnership also helped advance the implementation of the USAID 2020 to 2025 Indonesia Country Development Cooperation Strategy (CDCS) goal of the country becoming an advanced, just, prosperous, and self-reliant Indo-Pacific partner. NARUC supported MEMR by providing capacity building to advance effective governance of the Indonesian energy sector, promote the achievement of environmental sustainability and economic growth, and develop a regulatory framework that enables regional energy trade and integration. The partnership also focused on fostering grid modernization and renewable energy integration, strengthening the power wheeling regulation, and promoting good governance and transparency in regulatory decision making. Key accomplishments of the partnership include the development of a report on Key Considerations for Facilitating Grid Modernization and Renewable Energy Integration in Indonesia, which provides approaches for grid modernization and includes recommendations on developing a grid modernization roadmap, increasing renewable energy investment and production, and establishing a formal summary of recommendations on these topics. NARUC also facilitated a series of webinars on the roles and responsibilities of utility regulators, grid modernization and renewable energy integration, and peer reviewed Indonesia's Regulation 01/2015 on Power Wheeling, providing comments and technical recommendations. The partnership's efforts aimed to improve MEMR's capacity to oversee reforms and regulatory steps to advance energy efficiency, reliability, environmental sustainability, create a favorable investment environment in the energy sector, and support power wheeling. The program's outcomes are expected to contribute to the achievement of environmental sustainability and economic growth in Indonesia, as well as support the country's goals for increased deployment of clean energy technologies and utility modernization.