Indonesia Clean Energy Development II (ICED II) FY 2016 Quarter 2 Progress Report

The program's primary objective is to improve the enabling environment for rapid co-investment in clean energy, accelerate the mobilization of private and public sector co-investment in clean energy, and enhance outreach on USAID and USG inter-agency activities in Indonesia's energy sector. Implementation of various activities on solar photovoltaic (PV) as a high-priority renewable energy resource was a key focus area during the period January through March 2016. Studies on solar PV calculated financial feasibility of solar PV projects in Indonesia, and a background study was conducted for the revision of the feed-in-tariff (FiT) policy for solar PV power plants. ICED II also conducted trainings on solar PV, including a 5-day training for State Electricity Company (PLN) personnel and a one-day workshop for the Ministry of Energy and Mineral Resources (MEMR). Technical and financial study of solar PV technology development in Indonesia was a significant input for the revision of the solar PV FiT policy. This quarter, PLN and UP3KN agreed to start clean energy development from solar PV technology. ICED II also conducted a 5-day training on solar PV and PV/diesel hybrid technology for PLN personnel in January 2016, and a one-day workshop on solar PV technology was held for MEMR staff. To strengthen collaboration with other donors, ICED II worked with ADB and GIZ in providing input to the MEMR NREEC Various Energy directorate in preparation of new regulations for utility interconnected solar PV projects. ICED II also provided stronger support for Indonesia's Financial Services Authority (OJK) to implement Indonesia Sustainable Finance Roadmap 2013-2019, which aims to shift the current national economic development outlook from near-term profit to longer-term investment. Financial closure of a clean energy project, a 75 MW windfarm project in Sidrap, South Sulawesi, was reached and made possible by additional project review that ICED II had conducted. USAID and MEMR signed a memorandum of understanding (MoU) on February 10, 2016, offering additional opportunities for coordinating technical work. ICED II conducted a workshop with MEMR regarding ICED II support to various units under the MoU, with the Planning Bureau of MEMR assigned as the focal point for the cooperation. In the next quarter, ICED II will continue supporting the National Development Planning Agency and MEMR, and conduct a workshop on green bonds. Solar PV technology will be the main theme of utility resource planning of PLEA Nias initiative. As part of technical assistance to PLN, a series of training on feasibility study standard will also take place next quarter, as well as a couple of consultation workshops. ICED II will also begin planning the first annual coordination forum for United States Government agencies working in climate change and clean energy, and help scoping out PLN participation in the USAID Utility Partnership Program.