Indonesia Clean Energy Development II (ICED II) FY 2016 Quarter 1 Progress Report

The project focuses on three main components: improving the enabling environment for clean energy investment, accelerating the mobilization of private and public sector co-investment in clean energy, and outreach on USAID and USG inter-agency activities in Indonesia's energy sector. In the quarter ending December 2015, ICED II provided policy, project, and project assistance to national and regional units of the Government of Indonesia. The project's assistance was formally recognized by PLN, and memoranda of understanding (MoUs) were anticipated to be signed by the Ministry of Energy and Mineral Resources (MEMR) and USAID, and BAPPENAS and USAID in mid-January 2016. ICED II assisted several national clean energy and climate change programs this quarter, including revising guidelines for provincial governments to calculate their greenhouse gas emission reductions and monitoring, evaluation, and reporting (MER) documentation. The project also coached provincial energy sector officials on MER for the energy sectors in Southeast Sulawesi and North Kalimantan. ICED II assisted MEMR by facilitating the process for preparing the National Energy Plan (RUEN) and providing inputs to the Acceleration Team for New and Renewable Energy (P2EBT) during the incubation of the new National Energy Fund, the Clean Energy Center of Excellence, and the Clean Energy for Rural Electrification Program. The project also provided inputs to the New and Renewable Energy and Energy Conservation Directorate on the revision of the solar PV utilization and power purchase regulations. For OJK, Indonesia's Financial Services Authority, ICED II completed the OJK Guideline for Environmental Permits in Clean Energy – Handbook for Financial Institutions. ICED II also began rolling out its Planning for Energy Access (PLEA) Initiative with a focus on Nias, developing the methodology, collecting and processing data, and preparing analytic software for this Initiative. In terms of investment mobilization, ICED II consulted with 19 private sector partners involved in clean energy project development this quarter and completed 4 project memoranda. The ICED II Clean Energy Project Pipeline as of the end of December 2015 included 143 clean energy projects, generating capacity equivalent to 1,088 MW, and an investment of $2,240 million. The ICED II project has made significant progress in improving the enabling environment for clean energy investment in Indonesia. The project's assistance has been formally recognized by national and regional units of the Government of Indonesia, and memoranda of understanding (MoUs) are anticipated to be signed by key stakeholders in mid-January 2016. The project's investment mobilization efforts have also shown promising results, with 19 private sector partners consulted and 4 project memoranda completed. The ICED II project's focus on improving the enabling environment for clean energy investment, accelerating the mobilization of private and public sector co-investment in clean energy, and outreach on USAID and USG inter-agency activities in Indonesia's energy sector is critical to achieving the country's clean energy goals. The project's progress and achievements demonstrate its commitment to supporting Indonesia's transition to a low-carbon economy. The ICED II project's success is also reflected in the development of the National Energy Plan (RUEN), which aims to increase the share of renewable energy in the energy mix to 23% by 2025. The project's assistance to the Acceleration Team for New and Renewable Energy (P2EBT) has also contributed to the incubation of the new National Energy Fund, the Clean Energy Center of Excellence, and the Clean Energy for Rural Electrification Program.