INDONESIA CLEAN ENERGY DEVELOPMENT II (ICED II) Work …

WORK PLAN FISCAL YEAR 6 OCTOBER 2019-SEPTEMBER 2020

July 2008 1

INDONESIA CLEAN ENERGY DEVELOPMENT II (ICED II)

Work Plan Fiscal Year 6 FY 2019, OCTOBER 2019-SEPTEMBER 2020

(Redacted)

Submission Date: November 2019 – REDACTED

Contract No.: AID-OAA-I-13-00019

Task Order: AID-497-TO-15-00002

Activity Start Date and End Date: May 2015 to May 2020

COR Name: 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.

WORK PLAN FISCAL YEAR 6 OCTOBER 2019-SEPTEMBER 2020 Indonesia Clean Energy Development II Project Submission Date: November 2019 – REDACTED

Prepared for:

Office of Environment USAID/Indonesia

Prepared by:

Tetra Tech ES, Inc. USAID Indonesia Clean Energy Development Project II Menara Jamsostek, North Tower, 14th Floor Jalan 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.


ii

ACRONYMS

ACEF Asia Clean Energy Forum

ADB Asian Development Bank

ADS Automatic Dispatching System

AFD Agence Française de Développement (French Development Agency)

APBN Anggaran Pendapatan dan Belanja Negara/National Budget Bappeda Badan Perencanaan Pembangunan Daerah/ Local Development Planning Agency (at

provincial and district levels) Bappenas Badan Perencanaan Pembangunan Nasional/ National Development Planning Agency BAU Business as Usual BCSF Bali Center for Sustainable Finance Biro KLIK Communication, Public Information Services, and Cooperation Bureau (under MEMR)/ Biro

Komunikasi, Layanan Informasi Publik, dan Kerja Sama (di bawah Kementerian ESDM) BPP Biaya Pokok Penyediaan listrik (electricity supply cost) BPS Badan Pusat Statistik/Central Bureau of Statistics CAISO California Independent System Operator CDCS Country Development Cooperation Strategy CETIF Clean Energy Technology and Innovation Fund COD Commercial operating date CO2 Carbon dioxide Danida Denmark International Development Agency DCA Development Credit Authority (of USAID) DEN Dewan Energi Nasional/National Energy Council (NEC) DFATD Australian Department of Foreign Affairs, Trade and Development DG Directorate General/Direktorat Jenderal DGE Directorate General of Electricity (under MEMR)/DJK DGNREEC Directorate General of New Renewable Energy and Energy Conservation within MEMR/Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi (Ditjen EBTKE) Distamben Dinas ESDM, or provincial-level energy offices Ditjen EBTKE Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi DJK Direktorat Jenderal Kelistrikan (di bawah Kementerian ESDM)/DGE DKE Dana Ketahanan Energi/Energy Resilience Fund EBT Energi Baru Terbarukan/Renewable Energy (a division within PLN) EBTKE/NREEC Energi Baru Terbarukan dan Konservasi Energi (direktorat jenderal di bawah Kementerian

ESDM)/New and Renewable Energy and Energy Conservation (directorate general under MEMR)

EPC Engineering, procurement, construction ESRA Environmental and Social Risk Assessment EU European Union FY Fiscal year GGGI Global Green Growth Initiative GHG Greenhouse gas GIS Geographic information system GIZ Gesellschaft für Internationale Zusammenarbeit (German Corporation for International

Cooperation) GOI Government of Indonesia HHP Hadiputranto Hadinoto and Partners ICED II USAID’s Indonesia Clean Energy Development II Project


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IIEE Indonesian Institute for Energy Economics IFC International Finance Corporation IPP Independent power project/producer IUPTL Izin Usaha Penyediaan Tenaga Listrik/Electric Power Supply Business License KEN National Energy Policy KLHK Kementerian Lingkungan Hidup dan Kehutanan/Ministry of Environment and Forestry (MoEF) KPI Key performance indicator LCOE Levelized Cost of Energy LEAP Long-Range Energy Alternatives Planning System LPEM UI Institute for Economic and Social Research Faculty of Economics and Business University of

Indonesia MEMR Ministry of Energy and Mineral Resources/Energi dan Sumber Daya Mineral MER Monitoring, evaluation and reporting MoEF Ministry of Environment and Forestry MoF Ministry of Finance MoHA Ministry of Home Affairs/Kementerian Dalam Negeri MoU Memorandum of Understanding MW Megawatt NARUC National Association of Regulatory Utility Commissioners NEC National Energy Council NREEC New Renewable Energy and Energy Conservation/EBTKE NTB Nusa Tenggara Barat/West Nusa Tenggara NTT Nusa Tenggara Timor/East Nusa Tenggara OJK Otoritas Jasa Keuangan/ Indonesia’s Financial Services Authority P2RUED Tim Pembinaan Penyusunan Rencana Umum Energi Daerah/Supervisory Team for Regional

Energy Plan Development PLN State Electricity Company/Perusahaan Listrik Negara PLN Wilayah Regional PLN/PLN Regional Office PoDeS Pendataan Potensi Desa/ Village Potential Statistics PPA Power Purchase Agreement PPSDM Pusat Pengembangan Sumber Daya Manusia/Center for Human Resource Capacity

Development PT SMI PT Sarana Multi Infrastruktur (Persero) PV Photovoltaic RAD GRK Rencana Aksi Daerah Gas Rumah Kaca/Local Action Plan for Greenhouse Gas Emission

Reduction RAN GRK Rencana Aksi Nasional Gas Rumah Kaca/ National Action Plan for Greenhouse Gas Emission

Reduction RDMA USAID Regional Development Mission for Asia REGP Renewable Energy Generation Plants (the PLN interconnection code) RFP Request for Proposal RPJMD Regional Mid-term Economic Development Plan RPJMN National Mid-Term Economic Development Plan RTRWP/K Provincial/District/City Regional Spatial Management Plan RUED Regional Energy Plan/Rencana Umum Energy Daerah RUED-P Provincial Energy Plans (P2RUED uses this term to refer to RUED. This term is used

interchangeably throughout the document). RUEN National Energy Plan/ Rencana Umum Energy Nasional RUKD Regional Electricity Development Plan (Rencana Umum Ketenagalistrikan Daerah)


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RUKN National Electricity Development Plan (Rencana Umum Ketenagalistrikan Nasional) RUPTL Electricity Power Supply Business Plan (issued by PLN)/Rencana Umum Penyediaan Tenaga

Listrik S&T Science and Technology SDG Sustainable Development Goals SekRAN Sekretariat Rencana Aksi Nasional Gas Rumah Kaca (di bawah Bappenas)/Secretariat of SULSELABAR PLN South Sulawesi Region (South, Central and West) TA Technical assistance TDA U.S. Trade and Development Agency Tim Teknis Technical Team for Clean Energy (GOI and USG) TNA Training needs assessment TOCOR Task Order Contracting Officer Representative TOR Terms of Reference UAV Unmanned aerial vehicle UEEP Utility Executive Exchange Program UI University of Indonesia UKCCU United Kingdom Climate Change Unit UNDP United Nations Development Programme U.S. United States USAID United States Agency for International Development

USEA United States Energy Association

USDOC U.S. Department of Commerce (USDOC) USDOE U.S. Department of Energy (USDOE) USG United States Government


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TABLE OF CONTENTS

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

TABLE OF CONTENTS .............................................................................................................................................. v

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

1.1. ICED II in Brief .................................................................................................................................................................... 1

1.2. Project Management Structure ....................................................................................................................................... 3

1.3. ICED II Stakeholders ......................................................................................................................................................... 5

1.4. Geographic Coverage........................................................................................................................................................ 6

2. OVERVIEW OF YEAR 6 WORK PLAN .............................................................................................................. 9

2.1. Component 1: Improve Enabling Environment for Rapid Co-Investment in Clean Energy ......................... 14 Task 1.1 - Increase Capacity for Low Emissions Energy Sector Planning and Implementation .................. 16 Task 1.2 - Policy and Regulatory Reform Support for Clean Energy Project Development ....................... 26

2.2. Component 2: Accelerate the Mobilization of Private and Public Sector Co-Investment in Clean Energy

38 Task 2.1 - Advance Project Development and Investment Promotion ............................................................ 41 Task 2.2 - Increased Local Capacity of Science, Technology, Innovation and Human Resource for Clean

Energy Growth ............................................................................................................................................................... 49

2.3. Component 3: Outreach on USAID and USG Inter-Agency Activities in Indonesia’s Energy Sector ........ 53

2.4. Clean Energy Technology and Innovation Fund ....................................................................................................... 60

2.5. Gender Action Program ................................................................................................................................................ 60

3. DETAILED WORK PLAN FOR YEAR 6 (OCTOBER 2019 - SEPTEMBER 2020) ................................................. 61

3.1. ICED II Administration................................................................................................................................................... 61

3.2. Component 1 - Improve the Enabling Environment for Rapid Co-Investment in Clean Energy ................. 62 Task 1.1 - Increase Capacity for Low Emissions Energy Sector Planning and Implementation .................. 62 Task 1.2 - Policy and Regulatory Reform Support for Clean Energy Project Development ....................... 72

3.3 Component 2 - Accelerate Mobilization of Private and Public Sector Co-Investment in Clean Energy ... 75 Task 2.2 - Increased Local Capacity of Science, Technology, Innovation and Human Resource for Clean

Energy Growth ............................................................................................................................................................... 81

3.4. Component 3 - Outreach on USAID and USG Inter-Agency Activities in Indonesia’s Energy Sector ...... 85

4. ICED II PERFORMANCE INDICATORS AND LIFE OF PROJECT TARGETS ........................................ 90


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

1. INTRODUCTION

1.1. ICED II in Brief

The Indonesia Clean Energy Development II Project (ICED II) is a project funded by the U.S. Agency for

International Development (USAID). 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 USAID’s principal energy program in Indonesia. As such, ICED II collaborates with other USAID

regional and global programs, as well as with other U.S. government agency energy-related initiatives

in Indonesia.

The ICED II Work Plan 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 USG Inter-Agency Activities in Indonesia’s Energy

Sector.

In addition, ICED II has a Clean Energy Technology and Innovation Fund (CETIF) to encourage the

participation and/or collaboration of the private sector and local entities to introduce innovative

equipment, technologies and approaches with high potential for scale-up and replication in the clean

energy sector.

This current Work Plan describes the activities and interventions required to meet the ICED II outputs,

results and deliverables. It describes the life of project (2015-2020) work streams, accomplishments

during 2015 – 2019, and planned activities during Year 6 (October 2019 to September 2020)1. The

ICED II work plan includes, but is not limited to, the following:

1) A clear and concise rationale for the inclusion of selected activities and/or modification of

activities from those originally proposed

2) A description of activities and corresponding levels of effort that address the ICED II scope of

work

3) Strategies and activities that cut across the three main contract components (described

above) and how these activities will be implemented in an integrated and coordinated fashion

4) Information on how activities will be implemented in a collaborative and coordinated manner

with implementing partners and other GOI entities

5) The corresponding timeframe for implementing activities

6) An estimated budget for the implementation of activities

7) Proposed criteria for the selection of subcontracts/grants in support of achieving the expected

results (specifically related to the Clean Energy Technology and Innovation Fund)

1 Pending USAID approval of Unfunded Extension in Time from May 7 to September 30, 2020.

http://www.iced.or.id/


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

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8) A review of the previous year’s accomplishments, problems, and progress towards achieving

ICED II outputs, results and deliverables.

9) Proposed sustainability plan to transfer ICED II work to one or more Indonesian partners, as

appropriate.

The ICED II period of performance covers five years, but for the purposes of planning and USAID

reporting, the project spans six USG fiscal years:

▪ Year 1 – May 8, 2015 to September 30, 2015

▪ Year 2 – October 1, 2015 to September 30, 2016




▪ Year 6 – October 1, 2019 to September 30, 2020 (pending USAID approval of Unfunded

Extension in Time from May 7 to September 30, 2020)

This Work Plan is structured to correspond to the ICED II contract’s scope of work, deliverables, and

institutional arrangements with USAID, GOI counterparts, and key implementation partners and

stakeholders. It lays out the hierarchy through which technical assistance is planned and

implemented.

At the highest level of the project Work Plan are the three components), each of which has two or

more tasks. The tasks comprise several work streams that we anticipate will continue for more than

one year (e.g., assisting PLN in implementing the Ministry of Energy and Mineral Resources’ (MEMR)

policy on geothermal development, assisting MEMR on human resource capacity-building, and energy

national and regional planning). Within each work stream, ICED has many discrete activities (e.g.,

providing due diligence to PLN in renegotiating geothermal power purchase agreements, developing

training needs assessments for solar photovoltaic (PV) power generation, assisting provincial

governments in developing regional energy plans), as shown in Figure 1.1.

Figure 1.1. ICED II Project Work Plan Hierarchy

Section 2 of this report presents an overview of the project’s three components and their tasks and

work streams, as well as the Clean Energy Technology and Innovation Fund, per the ICED II contract.

Section 3 presents the detailed Work Plan with descriptions of activities within each work stream.

ICED II is implemented by Tetra Tech ES Inc. under a prime contract with USAID. Through ICED II, Tetra

Tech provides a combination of short- and long-term technical assistance to the GOI, the national

utility PLN, and private sector partners. It uses primarily full-time staff and short-term technical

assistance to deliver USG assistance. Tetra Tech also uses subcontracts and grants under contract to

Components

Tasks

Work Streams

Activities




3

implement activities, take advantage of unforeseen opportunities, and provide additional support that

would be more effectively or efficiently implemented by local or international institutions (e.g.,

universities, research institutes, industry associations, and professional societies).

Figure 1.2 below shows the range of technical assistance inputs provided to ICED II public and private

sector partners.

Figure 1.2 - ICED II Technical Assistance

1.2. Project Management Structure

USAID/Indonesia provides overall management and technical direction to ICED II through its Task

Order Contracting Officer Representative (TOCOR). The TOCOR is responsible for monitoring the

project’s quality and effectiveness by maintaining close contact with the ICED II project team, the GOI,

and other key counterparts, and by reviewing the project’s accomplishments against its work plan.

USAID also provides guidance to the ICED II management team in monitoring and evaluation,

environmental management and mitigation, gender and other areas to ensure compliance with USAID

requirements.

The ICED II project team comprises both full-time personnel and short-term consultants from

Indonesia and the United States who cover all the management, technical, and administrative

responsibilities required to implement this work plan. The Chief of Party is responsible for the overall

management and technical direction of the project team, supported by three additional key

personnel:

▪ Deputy Chief of Party (Component 3 Lead and CETIF Management Team Lead)

▪ Energy Governance/Regulatory Specialist (Component 1 Lead)

▪ Clean Energy Project Development Specialist (Component 2 Lead).

Figure 1.3 shows an organization chart for the ICED II project.

ICED II Assistance

Technical and Policy Advice

Review of CE Project

Documents

Research, Analysis, Studies

Guidelines, Models, Tools

Training and Capacity Building

Awareness & Promotion of CE Achievements

Public Sector Partners

Private Sector Partners




Figure 1.3 - ICED II Organizational Chart

(Redacted)




1.3. ICED II Stakeholders

ICED II is part of a larger USAID Assistance Agreement with the Government of Indonesia that was

signed by the Ministry of Finance. The National Development Planning Agency (Bappenas) has been

appointed as the Executing Agency or the focal point for the USAID Environment Portfolio under an

Individual Arrangement. ICED II supports a Technical Team (Tim Teknis)2 for a clean energy program

comprising representatives of relevant GOI ministries and agencies as outlined in Technical

Arrangement between USAID and the Ministry of Energy and Mineral Resources (MEMR). USAID also

has separate memoranda of understanding with MEMR and PLN that outline specific engagements

and activities with the respective institutions including, but not limited to, ICED II.

ICED II implements activities with and through a wide variety of public and private sector partners or

stakeholders. This is essential to leverage the project’s technical and financial resources, to ensure

that there are key sponsors or stakeholders for an activity before and after ICED II involvement, and

to ensure that ICED II activities are aligned with the priorities of key players in the clean energy

sector. ICED II partners include:

▪ Key counterparts: Ministry of Energy and Mineral Resources, Bappenas, PLN, and the

Financial Services Authority (OJK)

▪ Active partners: selected provincial and regency (kabupaten) governments and the private

sector (e.g., developers, banks and financial institutions, equipment and services providers)

ICED II also collaborates with other donors and international development banks, other U.S.

Government agencies, and educational and training institutions to deliver coordinated assistance in

the clean energy sector.

The ICED II project coordinates with and seeks opportunities to leverage the work and/or funding

from other USAID programs and projects, other U.S. Government agencies, bilateral and multilateral

donor organizations, and international financing institutions engaged in the development of clean

energy in Indonesia. Examples include the Gesellschaft für Internationale Zusammenarbeit

(Germany’s international donor agency - GIZ), Japan International Cooperation Agency (JICA), French

Development Agency (AfD), Danish International Development Agency (Danida) and Danish Energy

Agency, New Zealand Foreign Affairs and Trade Aid Programme, United Nations International

Development Programme (UNDP), United Kingdom Climate Change Unit (UKCCU), Asian

Development Bank (ADB), and The World Bank (WB).

2 Tim Teknis, or technical team, consists of representatives of Government of Indonesia assigned to serve as the ICED II counterpart in reviewing and advising on the planning and evaluation of technical assistance in clean energy.




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Figure 1.4 - ICED II Stakeholders

1.4. Geographic Coverage

As outlined in the SOW, ICED II provides technical assistance, advisory services and capacity building

to multiple stakeholders with a balance between the national and subnational levels. It directs

resources to relevant government institutions and public/private sector entities based in Jakarta, as

well as to entities in the selected regions, in order to achieve the project’s expected results.

In its Country Development Cooperation Strategy (CDCS), USAID/Indonesia identified 14 “priority

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 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 it will

concentrate its regional energy planning support. These five – Aceh, East Java, North Sumatra, West

Nusa Tenggara (NTB) and South Sulawesi – are to serve as possible models for other provinces.

Aceh, North Sumatra and South Sulawesi were pre-determined in the ICED II contract’s SOW, while

East Java and NTB were selected in Year 2 based on the following criteria:

▪ Indicative clean energy project development (investment and installed capacity)

opportunities

▪ Greenhouse gas (GHG) emission reduction potentials in the energy sector over the projected

baselines in the Local Action Plans for Greenhouse Gas Emission Reduction (RAD-GRKs)

ICED II

MEMR

PLN

Banks/ FIs

IPP Developers

CE Equipment/

Services

USG Agencies

Other Donors

Educational & Training Institutions

Provincial & Local

Government

Ministry of Home Affairs

OJK/

Ministry of Finance

National Energy Council

BAPPENAS




7

▪ Number of households (and persons) without access to electricity

▪ Indicative progressive commitment from subnational (provincial, municipal/regency)

governments to take steps in implementing mitigation action plans and accelerating the

development of clean energy

▪ Relative ease in supporting field work (e.g., logistics) from ICED II’s Jakarta office.

During Year 2, NTB and East Java were added as ICED II priority provinces. During Year 4, ICED II

provided parallel direct support to the provincial government offices related to the Regional Energy

Plan/Rencana Umum Energy Daerah (RUED) in all five priority provinces. During Year 5, due to the

requests from the priority provinces as well as the parallel support from other donors, ICED II

focused its support in Aceh, North Sumatra and South Sulawesi. ICED II continues to support

renewable energy projects in its Clean Energy Project Pipeline as well as support the efforts of ICED II

partners (i.e., PLN, MEMR, OJK, banks, financial institutions, and private renewable energy

developers) that have a high probability of contributing to ICED II results. Finally, ICED II will engage

in a pilot activity with local governments outside the five priority provinces if given the opportunity

for scaling up following a successful demonstration.

ICED II’s geographic coverage strategy (Figure 1.5) combines ongoing support to national-level

partners in the ICED II priority provinces and the USAID priority provinces described above. ICED II

will take a portfolio approach to support PLN, MEMR, national banks and financial institutions, and

national developers. ICED II will concentrate support in the five ICED II priority provinces to engage

in subnational energy and GHG mitigation planning and policies, and to help initiate new clean

energy projects and programs. ICED II will respond 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 high-level results. ICED II will support projects in its national-level partners’ portfolios, even if

they are outside the USAID focus provinces. Finally, ICED II will continue to support projects from the

ICED Clean Energy Project Pipeline that have significant potential to contribute to the ICED II high-

level results (e.g., reduced GHG emissions, leveraged investment, persons with access to clean

energy).




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Figure 1.5 - ICED II Geographic Coverage Strategy

Jakarta-based Partners with National Portfolios

ICED II Priority Provinces (Aceh, East Java, North Sumatra, NTB, South Sulawesi)

14 USAID Focus Provinces

Other Provinces with ICED I Project or Project from National Partners

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

ICED II provides cross-sectoral

development support that will be

complemented with institutional, planning

and coordination assistance delivered at

the central level to GOI stakeholders in

Jakarta.

ICED II will respond to opportunities to

support public and private sector partners

based in the 14 USAID priority provinces

where there is a potential to contribute to

ICED II high-level results

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 results.




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2. OVERVIEW OF YEAR 6 WORK PLAN

ICED II uses a “life of project work program” approach that follows the same structure for

each annual work plan. The structure is defined by the ICED II contract scope of work and it

updated annually. This enables the reader to understand the status of related policy and

project development while seeing the continued and new activities planned in the current

year’s work plan.

This section describes the overall scope of ICED II assistance, including the results and key

performance indicators used to evaluate the effectiveness and impact of U.S. Government

assistance in the clean energy sector. We identify work streams that will involve multi-year

support and commitment of ICED II resources. Section 3 provides a detailed description of

Year 6 (October 2019 – September 2020)3 activities, including those discussed with one or

more stakeholder for implementation between October 1, 2019 and September 30, 2020.

Section 3 also describes possible activities that Tetra Tech has identified within each work

stream over the course of the five-year ICED II period of performance.

ICED II employs a “results-driven” approach to implementing its scope of work. The project

evaluates proposed activities based on their potential contribution to the ICED II’s high-level

and target results. ICED II activities are designed to facilitate investment in commercially-

viable renewable energy and energy efficiency projects, and effective government (national

and regional) programs that contribute to Indonesia’s energy security, increased energy

access, and GHG emissions reductions targets.

In all cases, the ICED II team works with one or more stakeholders in designing and

implementing its activities. This not only leverages USAID resources but also ensure that

ICED II activities are aligned with public- and private-sector initiatives intended to achieve

the Government of Indonesia’s (GOI) targets in clean energy and GHG emission reductions.

For example, ICED I assisted PLN in developing guidelines for connecting renewable energy

generating plants with capacities of not more than 10 MW to the 20-kV distribution system.

The ICED II team expects to assist PLN and project developers in the implementation of

these guidelines, and through PLN propose to MEMR’s Directorate General for Electricity

(DGE) to formalize these guidelines as government regulations.

ICED II supports public- and private-sector institutions, and coordinates with other USAID, non-USAID U.S. Government, and other donor programs. It leverages non-ICED II resources wherever possible and aims to create sustainability so the impacts can continue beyond ICED II’s five-year lifespan. The project also pays close attention to maximizing both its impacts and use of resources by carefully selecting, prioritizing, staging and sequencing its activities. During the year, the ICED II team periodically revisits the approved annual work plan to ensure ICED II is on the most effective course, to take advantage of new opportunities as they emerge, and to ensure the availability of ICED II staff and STTA resources. Any revisions to the annual work plan are submitted to USAID for their review and approval.

ICED II has an established Monitoring and Evaluation Plan. ICED II reports quarterly and

annually against the performance indicators and target results. Table 2.1: ICED II

3 Pending USAID Unfunded Extension in Time from May 7, 2020 to September 30, 2020.




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Performance Indicators and Results shows the eleven ICED II performance indicators, the

target results for each over the 5-year life of ICED II project, the cumulative results achieved

as of September 30, 2019, and the respective percentage of the achievement against the life

of project target.

Table 2.1: ICED II Performance Indicators and Results

No. Performance Indicators Life of Project

Target Results

Results to Date

(as of

September

2019)

% Compared to

Target

1 GHG emissions reduced (tons CO2e) 4.5 million 5.507 million 122.4%

2 Investment mobilized $800 million $1,577.7 million 197.2%

3 Improved energy services (persons) 5 million 1,854,960 37.1%

4 Institutions with improved capacity 20 34 170%

5 Laws, policies, strategies, plans, or

regulations

At least 20 47 235%

6 Clean energy generation capacity 400 MW 299.04 MW 74.8%

7 Proportion of females who report 70% 93% 132.7%

8 Generating capacity reaching financial

closure

400 MW 559.6 MW 139.9%

9 Projected GHG emissions reduced or

avoided through 2030 from adopted

laws, policies, regulations or

technologies related to clean energy

(tons CO2e)

27 million 39.7 million 147%

10 People trained in climate change 5,000 6,502 130%

11 Lifetime energy savings from energy

efficiency/conservation

2.8 million GJ 752,620 GJ 26.9%

Table 2.2 - ICED II Components, Tasks, and Work Streams.2 lays out the tasks and activities

for the first three components of ICED II. Note that Component 4 – the Clean Energy

Technology and Innovation Fund – does not have specific tasks or activities. The Fund is

designed to complement the other three components.

Figure 2.1 (below) illustrates the overall results framework for the entire ICED II project and

its individual components.




Table 2.2 - ICED II Components, Tasks, and Work Streams

Component Task Work Streams

Component 1:

Improve the

Enabling

Environment for

Rapid

Co-Investment in

Clean Energy

Task 1.1: Increase

Capacity for Low

Emissions Energy Sector

Planning and

Implementation

WS 1.1.1: Support Bappenas in streamlining RAD-GRK guidelines and ensuring procedures are communicated effectively

to subnational governments

WS 1.1.2: Support local institutions tasked with operationalizing the RAD-GRK mitigation action plans and leading other

key energy planning processes

WS 1.1.3: Assist Bappenas, MEMR, National Energy Council, and PLN in electricity generation and demand-side

management planning in developing the National Energy Plan (RUEN), National Electricity Development Plan (RUKN) and

Electricity Power Supply Business Plan (RUPTL)

Task 1.2: Policy and

Regulatory Reform

Support for Clean Energy

Project Development

WS 1.2.1: Support the development of specific incentives to stimulate financing streams for clean energy and emission

reduction initiatives at the national and local levels

WS 1.2.2: Support new/improved regulatory frameworks for renewable energy generating facilities

WS 1.2.3: Assist PLN in implementing GOI policies to increase the contribution of renewable energy

WS 1.2.4: Support OJK’s Sustainable Finance Program and help it formulate guidelines for the financial industry to

promote and increase investments in clean energy

WS 1.2.5: Within selected provinces, provide assistance in establishing two-way communications channels between

subnational entities and national policymakers

Component 2:

Accelerate the

Mobilization of

Private and Public

Sector Co-

Investment in

Clean Energy

Task 2.1: Advanced

Project Development

and Investment

Promotion

WS 2.1.1: Improve and maintain a database of viable clean energy projects (pipeline) with geographic information system

tools

WS 2.1.2: Provide advisory services, technical assistance and capacity building to project developers/sponsors, banks and

financial institutions, and equipment suppliers and service providers

WS 2.1.3: Provide technical assistance to PLN in establishing improved and standardized business practices for

engagement with renewable independent power producers/projects (IPPs)

Task 2.2: Increased Local

Capacity of Science,

Technology, Innovation

WS 2.2.1: Conduct initial landscape assessments of GOI agencies, industry associations, and academia to identify capacity

building needs to promote science and technology (S&T) advancements in energy planning, modeling, integration, etc.

WS 2.2.2: Work with key relevant national/subnational government entities, PLN and industry associations to identify

specific renewable energy and energy conservation technology innovations that will be crucial for the rapid deployment




Component Task Work Streams

and Human Resources

for Clean Energy Growth

of domestic clean energy capacity, and develop road maps and/or pilots for deployment and scaling-up, as well as to

assess their individual needs for assistance in strengthening human capacity to support such innovations

WS 2.2.3: Conduct an inventory of education/training programs to provide training in specific clean energy technology

production and maintenance efforts

WS 2.2.4: Provide technical assistance to stakeholders in data verification/analysis by developing their capabilities in GHG

mitigation/clean energy data collection and modeling tools in order to increase their capacity for evidence-based decision

making

Component 3:

Outreach on

USAID and USG

Inter-Agency

Activities in

Indonesia’s

Energy Sector

WS 3.1: Assist an annual coordination forum of USG agencies engaged in Indonesia’s climate change mitigation and clean

energy activities

WS 3.2: Develop a system to document, track and monitor the progress of projects assisted under the previous USAID

Clean Energy Program and ICED II Pipeline

WS 3.3: Manage, improve and expand the clean energy website developed by the ICED I project

WS 3.4: Identify areas of collaboration with other USAID environment programs and develop joint initiatives

WS 3.5: Identify areas of collaboration with other donors/international finance institutions and develop joint activities

WS 3.6: Support USAID’s and the GOI’s Clean Energy Working Group, to be established under the CDCS’s bilateral

agreement

WS 3.7: Prepare annual review of the state of renewable energy in Indonesia (additional activity).




Figure 2.1 - ICED II Results Framework




14

2.1. Component 1: Improve Enabling Environment for Rapid Co-

Investment in Clean Energy

Indonesia’s current planning and regulatory framework is poised to achieve significant

investment in clean energy. The GOI’s commitment to achieve climate change mitigation,

energy diversification, and electrification, as stipulated in the National Energy Policy, presents

opportunities for clean energy. The draft RPJMN provides insight into policies and the strategies

for energy and electricity development under the President Joko Widodo’s new administration.

Strategies to fulfill access and supply of energy and electricity evenly, reliably, efficiently, and sustainably

Diversification of energy and electricity to meet needs

• Utilization of EBT;

• Development of clean energy based mini/micro grids;

• Development of energy storage systems

• Utilization of rooftop solar energy for households as well as development of the domestic solar cell industry

Improved energy governance and electricity

• Improved institutional tasks and functions

• Strengthening the independence of the transmission system operator;

• Encouraging energy pricing / tariff policies and their application to achieve economic prices gradually; Review the EBT price policy based on cost of supply (BPP) generation

Increased utilization efficiency energy and electricity

• Development of Energy Service Company (ESCO);

• Expanding, rehabilitating and increasing the capacity of transmission and distribution systems;

• Development of information management and data control systems;

• Development and use of smart grid technology

• The use of technology that is more efficient and low in emissions

Development of funding policies and financing

• Development of targeted subsidies through direct and subsidies expenditure reallocation;

• Application of tariff adjustments and / or government support for financial increase of PT PLN;

• Reapplying automatic tariff adjustment;

• Make use of cheap financing, alternative instruments and asset leverage;

• Development of suitable funding schemes and continuous

Objectives: To provide assistance and advisory services to the GOI in identifying and overcoming gaps in the climate change mitigation and energy planning frameworks/ processes within the energy sector, and in formulating/refining relevant regulations and policies more conducive to the successful implementation of emission reduction plans and rapid development of clean energy projects.




15

Strengthening and expanding services energy and electricity supply

• Electricity fulfillment in priority areas;

• Provision of assistance for new electricity installations for poor households;

• Support the supply of primary energy (gas and coal) for electricity;

• Increased capacity of domestic oil refineries;

• Improvement of natural gas infrastructure;

• Development of fuel and LPG buffer / operational reserves;

• Utilization of the urban gas network, LPG, and clean stoves based on electricity;

• Increased capability of national engineering for power plants and gas / oil infrastructure supported by domestic industries;

• Expansion of fuel distribution at one price;

• Development of supporting infrastructure for electric vehicles.

Our approach to Component 1 is to support the GOI’s commitments by assisting national-level

institutional partners (Bappenas, MEMR, and PLN) to design and implement renewable energy

and energy efficiency programs, and to identify green growth strategies and investments for

provincial and local governments. We focus on removing the barriers to clean energy

investment by providing strategic advisory services to policy decision makers, critical reviews

and recommendations on relevant regulations, and guidance for developers, banks and financial

institutions, PLN, and provincial/local governments to improve implementation.

In designing specific ICED II activities, we have included both USAID’s performance indicators as

well as the respective KPIs of ICED II implementing partners. For example, since ICED II support

to the RAN-/RAD-GRK (National/Local Action Plan for Greenhouse Gas Emission Reduction)

programs at the national/provincial levels are expected to contribute to the projected

greenhouse gas emissions reduced or avoided through 2030, we will analyze Bappenas and/or

provincial Bappedas (regional development and planning agency) emissions estimates in

determining ICED II results.

Component 1 has two tasks.




16

Table 2.3 - Component 1 Target Results lists the associated minimum target results for each task

in Component 1.




17

Table 2.3 - Component 1 Target Results

Tasks Target Results

1.1. Increase Capacity

for Low Emissions

Energy Sector

Planning and

Implementation

▪ Within selected provinces, enhanced integration of RAD-GRK with

RAN-GRK, RUEN/RUED, Regional Electricity General Plan (RUKD),

Regional Mid-term Economic Development Plan (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 RAD-

GRK, RUED and RUKD planning and implementation processes.

1.2. Policy and

Regulatory Reform

Support for Clean

Energy Project

Development

▪ 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 regulatory framework and standardized feed-in

tariffs (FiTs) for the development of renewable energy projects with

generating capacities greater than 10 MW

▪ Public outreach strategies developed at the national/subnational

levels to effectively communicate the impact of policy/regulatory

reform.

Task 1.1 - Increase Capacity for Low Emissions Energy Sector Planning and

Implementation

This task refers to the established economic development, energy, electricity and GHG emission

reduction planning processes to chart a low-carbon path to meeting economic growth and

energy service objectives. Figure 2.2 illustrates the programmatic work streams, implementing

partners, desired outcomes, and expected results for Task 1.1.




18

Figure 2.2 - Overview of Task 1.1 – Increase Capacity for Low Emissions Energy Sector

Planning and Implementation

We understand the importance of integrating ICED II activities into the major national planning

processes (shown in Table 2.4 - Planning Processes Affecting the Development of Clean Energy)

that respond to the National Energy Policy (KEN) to ensure the sustainability of program results

and to 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.

Table 2.4 - Planning Processes Affecting the Development of Clean Energy

Planning

Process

RPJMN/

RPJMD

RAN-/RAD-

GRK

RAN-/RAD

SDGs

RUEN/

RUED

RUKN/

RUKD

RUPTL RENSTRA

KESDM

Description National/

Regional Mid-

term

Economic

Devt. Plan

National

Action Plan

for

Greenhouse

Gas Emission

Reduction

National

Action Plan

for

Sustainable

Devt. Goals

National/

Regional

Energy Devt.

Plan

National

Electricity

Devt. Plan

Electricity

Power Supply

Business Plan

Strategic Plan

of the

Ministry of

Energy and

Mineral

Resources

Responsible

Agency

Bappenas Bappenas Bappenas MEMR MEMR PLN MEMR

Planning

Timeframe

2020-2024* 2015-2034 2016-2030 2015-2050 2019-2028 2019-2028 2020-2024

Input from

Province/

Region

Provincial

energy data

Provincial

GHG

emissions

Provincial

plan on

Input on

energy

demand

Planning on

regional

electricity

Regional

office

RUED-P

• RUEN/RUED

• RENSTRA KESDM

• RUKN/RUKD

• RAN/RAD GRK

• RUPTL

• Sustainable Development Goals (SDGs)

• BAPPENAS

• MEMR

• Ministry of Home Affairs

• Subnational Governments

• PLN

• Aligned energy, electricity and GHG Plans

• Improved data, modeling & MER capabilities

• Effective subnational CE/GHG programs

• New approaches to resource planning

• Plans for increased energy access

• Institutions with Improved Capacity

• Leveraged Public Sector Investment

• Polices, Strategies, Plans, & Regulations

• Projected GHG emissions reduction to 2030

• People with Access to Clean Energy

Programmatic Work Streams

Implementing Partners

Desired Outcomes Expected Results

▪ RAN/RAD SDGs




19

Planning

Process

RPJMN/

RPJMD

RAN-/RAD-

GRK

RAN-/RAD

SDGs

RUEN/

RUED

RUKN/

RUKD

RUPTL RENSTRA

KESDM

reduction

action plans

sustainable

devt.

investment/

devt.

National

Outputs

from ICED

II Interven-

tions

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 IPP

renewable

energy power

projects

Energy

Security

Index; Energy

Self

Sufficiency

Index;

Cascade

Energy

Modeling

Tools

*-To be finalized in 2020

Table 2.5 - Overview of Work Streams and Support Areas under Task 1.1

Work Stream Support Areas

WS 1.1.1: Support Bappenas in streamlining RAD-GRK guidelines and ensuring procedures are communicated effectively to subnational governments

a. GHG Mitigation (is shifting to Low Carbon Development) Planning and Implementation: (i) National coordination to facilitate the development of RAD GRK review, (ii) other national documents related to GHG (Provincial RAD GRK and Provincial Low Carbon Development (LCD).

b. Sustainable Development Planning and Implementation: (i) RAN Sustainable Development Goals (SDGs)/TPB #7 (affordable and clean energy), (ii) Background Study RPJMN 2020-2024, (iii) RPJMN 2020-2024

WS 1.1.2: Support local institutions tasked with operationalizing the RAD-GRK mitigation action plans and leading other key energy planning processes

a. GHG Mitigation (is shifting to Low Carbon Development) Planning and Implementation: (i) RAD GRK review of focus provinces, (ii) RAD GRK Monitoring, Evaluation and Reporting (MER) of focus provinces

b. Energy Sector Planning and Implementation: (i) RUED of focus provinces, (ii) RUED MER of focus provinces

c. Electricity Planning and Implementation: (i) Electricity access in focus provinces, (ii) RUKD of focus provinces

d. Sustainable Development Planning and Implementation: (i) RAD SDG #7 of focus provinces, (ii) RAD SDG #7 review in of focus provinces, (iii) Alignment of provincial energy plans in RPJMD and Strategic Plan of the Ministry of Energy and Mineral Resources (RENSTRA KESDM)

WS 1.1.3: Assist Bappenas, MEMR, National Energy Council, and PLN in electricity generation and demand-side management planning in developing the National Energy Plan (RUEN), National Electricity Development Plan (RUKN) and Electricity Power Supply Business Plan (RUPTL)

a. Energy Sector Planning and Implementation: (i) National coordination to facilitate the development of provincial RUED, (ii) RUEN review/provincial RUED, (iii) RENSTRA KESDM

b. Electricity Planning and Implementation: (i) Electricity access data processing and geospatial mapping from Podes 2018, (ii) Analysis of specific areas (linked with WS 1.2.2), (iii) RUPTL




20

Work Stream 1.1.1: Support Bappenas in streamlining RAD-GRK guidelines and ensuring

procedures are communicated effectively to subnational governments

WS 1.1.1.a. GHG Mitigation Plan and its shift towards Low Carbon Development Plan ICED have been supporting Bappenas Secretariat of RAN/RAD GRK since 2011. The RAD GRK process has gone through a full cycle of planning-implementing-monitoring- evaluating, which involves all 34 provinces in Indonesia. Further, based on the evaluation of achievements of each province by 2016, Provincial Governments are currently in the process of revising their RAD GRK. Expected time for completion of the New Governor Regulations on RAD GRK is not yet certain, as the national reference, which is Presidential Regulation 61/2011 on RAN GRK, is also under review. Since the past year Bappenas has been announcing a shift from RAN/RAD GRK to Low Carbon Development (Pembangunan Rendah Karbon, PRK) as a new integrated approach of national development policy. PRK is intended to incorporate various national policies to balance the economic, social and ecological goals. During 2019, Bappenas conducted a series of regional workshops to disseminate PRK concept and tools to provincial governments. It is also incorporated in the draft RPJMN 2020-2024 submitted by Bappenas to President Joko Widodo at the beginning of his new presidency term.

WS 1.1.1.b. Sustainable Development Plans and Implementation The United Nations member countries including Indonesia declared the Sustainable Development Goals (SDGs) in the UN assembly 25-27 September 2015 in form of a document titled “Transforming Our World: The 2030 Agenda for Sustainable Development”. It is a plan of action for people, planet and prosperity to be implemented by all countries and all stakeholders, acting in collaborative partnership. The GoI commitment on SDGs is then reflected in the Presidential Regulation 59/2017 on the Implementation of Sustainable Development Goals (Pelaksanaan Pencapaian Tujuan Pembangunan Berkelanjutan (TPB)), which mandated an alignment of the SDGs with Indonesia’s Long-term and Medium-term Development Plans. Further, the National Action Plan on SDGs (RAN TPB) has been issued as part of the Regulation of Minister of PPN 7/2018 on the coordination, planning, evaluation, and reporting of the implementation of SDGs. It is intended to become a common reference in meeting the 17 Goals and 319 indicators of SDGs. Currently, provincial governments are preparing provincial action plan (RAD TPB) to achieve SDGs by 2030, while the national government is developing a Roadmap SDGs 2030 which will contain desired targets, opportunities and challenges, as well as projections of key SDGs indicators.

• Linkages of GHG mitigation with LCD, SDGs and the National Development Plan. Bappenas has indicated that RAN/RAD GRK will be part of the PRK policy and plans.

PRK will influence the revision of Presidential Regulation 61/2011 (in progress) which focuses on the action plans to reduce GHG emission currently hosted by Bappenas, and the revision of Presidential Regulation 71/2011 on the inventory of national GHG emission




21

currently hosted by Ministry of Forestry and Environment. However, it is not clear yet how GoI will resolve the regulations on GHG emission.

• Regulation of Minister of PPN 7/2018 has aligned SDGs and the national development plan/targets for the period of 2018-2019, and stated that tor the period beyond 2019, SDGs will be accommodated in the National Development Plan.

• Bappenas has indicated that LCD/PRK and SDGs/TPB are interrelated as shown in Figure 2.3. From LCD perspective, Goal #13 is a central base to support other goals. Nevertheless, as of today, the alignment of LCD and SDGs in Indonesia is still at a conceptual level. There are a set of regulations on SDGs, while LCD is at its early stage. The alignment of LCD and SDGs shall be resolved in the RPJMN process.

• Bappenas has prepared (i) the Background Study for RPJMN 2020-2024 (medium-term development plan), and (ii) the concept of Indonesia Vision 2045 (concept for a new long-term development plan). The RPJMN 2020-2024 will be finalized in October 2019. Later, the new government will develop the long-term development plan.




22

Figure 2.3 - Interlinkages of Low Carbon Development and Sustainable Development Goals

In Year 6, ICED II will continue to assist Bappenas in its tasks:

• Bappenas has been coordinating the implementation of RAN/RAD GRK, its MER cycle and revision of RAD GRK. ICED II will continue to support the RAN/RAD GRK Secretariat in their facilitation to the provincial GRK teams.

• Bappenas plays a key role in the coordination and management of processes to develop RAN/RAD SDGs/TPB and LCD/PRK, which may include a new arrangement of GHG emission reduction activities (RAN/RAD GRK). ICED II will focus on the SDG number 7 and related concerns to overcome climate change and its impacts as the SDG number 13 (Climate Action). These works will indirectly contribute towards RPJMN preparation.

• Bappenas is part of the National Energy Council who oversee the RUED-P development process. ICED II will continue to support the process and aim towards linking GHG emission reduction and share of renewable energy in RUED-P with the national energy targets.

• Bappenas is not directly involved in the process to develop Provincial Electricity Plan (RUKD). However, the content of RUKD directly relates to other provincial plans on energy as regulated in RAD SDGs, RAD GRK, and RUED. ICED II will support Bappenas in ensuring the alignment of RUKD with RUED and other provincial energy planning processes.

ICED II would like to ensure that energy plans in the form of various provincial documents are incorporated into the mainstream development plan of the respective province such as RPJMD and the subsequent planning stages. (Activities in Work Stream 1.1.1 are related with those in Work Stream 1.1.2 and 1.1.3). Sustainability Plan:

• Database and guidelines that ICED developed have been part of the materials in the training series for provincial governments

• The methods, tools and guidelines previously developed for RAD GRK process become references for new energy planning processes (RUED, RUKD)

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:

Goal 7, 8, 9, and 17 (Economics Pillar)

Goal 1, 2, and 4 (Social Pillar)

Goal 6, 11, 12, 14, and 15 (Environmental

Pillar).




23

• Reduction of GHG emission in the energy plans at the national and provincial levels relates to the role of renewable energy in the RUED development process.

Work Stream 1.1.2: Support local institutions tasked with operationalizing the RAD-GRK

mitigation action plans and leading other key energy planning processes

Alignment of provincial energy plans Energy planning at sub-national level appear in several work streams, namely provincial GHG emission reduction action plan (RAD GRK), energy plan (RUED), electricity plan (RUKD), action plan to achieve sustainable development goals (RAD SDG) and the sub-national medium-term development plan (RPJMD). RPJMD has been part of the standard practice of the government structure, and strengthened by subsequent and more detailed planning and budgetary allocation. However, other planning processes and documents development currently run as separate programs and it is not clear as to how they will be attached to the existing budgetary process. Therefore, the Ministry of Home Affairs (MoHA) leads an initiative to align various planning processes at the provincial level, which aims to incorporate all sub-national planning processes into RPJMD. MoHA’s alignment effort runs in parallel at both national and sub-national levels. ICED II will coordinate its work with MoHA’s alignment initiative. A round of review of RUED Draft will be anticipated due to (i) new leadership in both national and provincial levels of government, (ii) lower national assumption on GDP growth from previously 8% per year to around 5.5% per year during 2019 – 2024, and (iii) development of RUKD and other provincial planning documents involving energy which come after the RUED process. New national policy and guideline such as PRK/LCD approach currently being promoted may also alter the content and priority of energy supply and demand planning. ICED II will support the focus province in the alignment of their energy plans. The new PRK/LCD approach at the national level may facilitate the alignment process. ICED II will continue to assist the priority provinces and local authorities to implement their RAD-GRKs while developing their RUED-P, RUKD and RAD SDG #7 in North Sumatera and Aceh provinces. In addition to supporting the two focus provinces in dealing with these provincial energy plans, in Year 6, ICED II will also assist South Sulawesi Province whom plan to revise its RUED draft and it is one of few volunteered provinces to develop a plan for PRK/LCD. The process will be challenging since its methodology and tools are still under development, and currently there is no guidelines for PPRKD development process. ICED II also expects to receive requests for assistance from other provinces through its support to the national authorities administering the RAD-GRK, RUED, RUKD and RAD SDG #7 processes. Electricity Planning and Implementation ICED II has been studying rural electrification as an example to find the linkage between national and sub-national energy planning. Our approach has gone through these steps: (i) processing nation-wide statistics of household electricity access, (ii) converting tabular data into geospatial




24

form, (iii) overlaying the electricity access map with various layers of information in geospatial form, such as the 20-kV grid map, dispersion of buildings, road access, and so on, and (iv) facilitating local stakeholders to communicate and discuss differences of data from multiple sources. This initiative highlights the importance of improving data quality and encourages collaborative effort among stakeholders to have better understanding of energy situation in each area. Proper data, information and knowledge will also improve the quality of the stakeholders’ energy plans. In Year 6, ICED II will continue supporting the provincial government, PLN regional offices and other local stakeholders to improve data transparency, accessibility and quality. An improved governance in the process is expected to yield more comprehensive yet realistic energy plan, which aims toward more sustainable scheme of electricity provision. Further, ICED II will conduct detailed rural electrification planning for few pilot sites in coordination with PLN and other key stakeholders. These activities are related with Work Stream 1.1.3 and 1.2.2. Through ICED II assistance in preparing the RAD-GRK’s revision, RUED and RUKD, as well as ICED II support to PLN regional offices in preparing their inputs to the annual RUPTL, ICED II has been helping the Government of Indonesia with preparing the RAD-GRK revision, RUED and RUKD development. ICED II has also helped PLN regional offices providing inputs to the annual RUPTL. ICED II will identify specific projects or programs, for example on rural electrification planning, for local governments or PLN regional offices. These projects or programs will contribute to achieve ICED II’s result on GHG emissions reduction. The technical support to these projects and programs will be carried out by Task 2.1. Sustainability Plan:

• Adoption of ICED II guidelines, data sets, and use of GIS and other tools to support energy and electrification planning

• Alignment of provincial energy planning documents with RPJMD and its subsequent budgeting process. This approach will improve likelihood of implementation of the planned activity

• Adoption of collaborative planning in rural electrification programs to pool resources while distribute loads and avoid overlaps

• Engagement of local stakeholders in electrification planning processes, from design phase until implementation phase. This will develop stronger sense of ownership and build long term partnership. Consumers’ needs, perspectives and capacity are important considerations in designing a system to meet affordability of potential customers and ensure that electricity access can improve welfare. Participation of local experts/specialist can reduce cost and improve resiliency of the scheme.

Work Stream 1.1.3: Assist Bappenas, MEMR and PLN in electricity generation and demand side

management planning in developing RUEN, RUKN and RUPTL

Energy Sector Planning and Implementation RUEN implementation has led to a draft of RUED in every province, albeit with various degree of maturity. An overview of linkages between provincial RUED drafts with the national policy




25

stated in RUEN has not been explored. Even if it has been analyzed, the findings have not been available publicly. ICED II plans to conduct activities on (i) developing and utilizing multi-region energy model, (ii) developing MER of subnational energy plans. Multi-Region Energy Model ICED II will identify opportunities to develop common baseline datasets, geospatial maps and other supporting tools for national institutions and provincial energy planning processes. We will develop a tool to aggregate data from RUED-P drafts, and compare it with RUEN/national figures while maintaining distinctive features of each province’s energy model. Building such model will require a cascaded energy model to facilitate assessment of complex policy scenarios. For example, adjustments of RUED-P drafts in several provinces will be needed, among others, due to a much lower GDP growth assumption in the national development plan RPJMN 2020-2024. The tools will assist national policy makers to conduct planning exercise of such scenarios. MER of Sub-National Energy Plans A tool to monitor the progress of energy policy/plan is also required as feedbacks towards improving effectiveness. Currently, there are several tools and mechanisms that GoI institutions use to monitor progress, evaluate and report development progress. However, most of the tools and mechanisms focus on budget spending and none of them is designed for MER of energy policy implementation. In Year 5, ICED II assisted MEMR Planning Bureau in developing indicators for Energy Security Index (ESI) and Energy Self Reliance Index (ESRI). In Year 6, we plan to explore use of RUED-P related data (plan vs realization) and the operationalization of ESI-ESRI indices. The above form of data, tools, skill and knowledge will be able to capacitate national institutions overseeing the energy sector and its performance such as MEMR, DEN, Bappenas etc. to evaluate energy policy implementation plan, its progress, successful measures and weakness spots. MER of RAN GRK in Power Generation Plants ICED II continues its technical assistance to MEMR Directorate General of Electricity (DJK) in developing methodologies to calculate GHG emission reduction from fossil fuel fired power plants. The six methodologies and templates submitted to DJK and Directorate General of New and Renewable Energy and Energy Conservation (DG EBTKE) in Year 6 were on (i) retrofitting, (ii) rehabilitation, (iii) mitigation in losses, (iv) combined cycle, (v) ultra-super critical steam power plant, and (vi) fuel switching. UNDP proposed six additional methodologies. In Year 6, MEMR DJK has committed to finalize all templates and guidelines, launch them, then disseminate and conduct training for power plant owner and operators. Later, MEMR DG EBTKE will coordinate Emission Reduction Claim of the energy sector for 2019. Electricity Planning and Implementation MEMR DJK issued the National Electricity Master Plan (RUKN) for 2019-2038. The Plan serves as a masterplan for Indonesia’s electricity sector over the coming 20-year period. The RUKN confirmed the target of 100% electrification by 2020, as well as new and renewable energy contribution of 23% of final energy use (all sectors) by 2025. The overall vision of the electricity sector, among others, is to enhance development in the outer areas, enhance the productivity




26

of the people, and enhance Indonesia’s international competitiveness, particularly among Asian nations. The RUKN emphasizes Indonesia’s need to transform the electricity sector through SMART Grid and Electricity 4.04. The stated benefits of SMART Grid in Indonesia include: 1) more efficient electricity distribution; 2) faster restoration of power following blackouts or supply interruption events; 3) lower operation and management (O&M) costs for PLN leading to lower consumer tariffs; 4) reducing system peak load and generation costs; 5) easier integration of large scale renewable energy projects; 6) better integration of customer-owned generation such as rooftop solar PV; and 7) increased energy security. Infrastructure for electricity storage and electric vehicles (e.g., charging stations and higher voltage customer connections) are identified as some of the programs that need to be developed by the government. PLN issued its updated 10-year RUPTL covering the period of 2019-2028. It reflects the RUKN in terms of increased utilization of renewable energy, universal access to electricity, and SMART Grid implementation plan. ICED II will continue its assistance in several areas related to the priorities set forth in RUKN 2019-2038 and RUPTL 2019-2028. These include Distribution System Planning Guidelines, Methodology Guidelines for System Impact Analysis of large scale renewable energy power plants (particularly variable wind and solar PV), transmission Grid Code, power system analysis training, reviewing the 2019 Java blackout and providing recommendations for improved planning and operations, rooftop solar PV, and automatic generation control (AGC) for diesel-powered isolated grids that are connected to solar PV power plants. MEMR DJK has also requested assistance in electric vehicle infrastructure. This work is described in Work Streams 1.2.3 and 2.1.3. ICED II will continue supporting PLN in the Distribution System Planning Guidelines. PLN is currently reviewing the Guidelines and aims to adopt the Guidelines by December 2019. Following the adoption, ICED II will provide support for training and use of the Guidelines. ICED II expects that PLN will use the Guidelines for preparing the RUPTL 2021-2030. We will seek to align the RUED with other energy-related provincial plans and PLN regional inputs to the RUPTL. As PLN gains greater positive experience in increased penetration of renewable energy, we will propose to work with PLN’s System Planning Department and PLN regional offices to set high penetration targets in their transmission and distribution systems, as reflected in the RUPTL. ICED II pilot projects with PLN under Component 2 are designed to convince PLN’s System Planning Department to adopt this initiative nation-wide. ICED II expects to implement this work stream by working with PLN, both at the national and regional offices. ICED II will mainly support PLN activities related to dissemination of data and information to, and capacity building for provincial/local governments in the development and alignment of energy-related provincial plans. This activity is related with Work Stream 1.1.1 and 1.1.2. in ICED II five priority provinces. ICED II will work and use MEMR’s databases, e.g., the database on rural electrification and renewable energy project development, to support the monitoring of progress towards

4 Electricity sector’s corresponding transition toward Industry 4.0.




27

achieving national targets on the electrification ratio and renewable energy’s share in the energy mix. This activity is related with Work Stream 2.1.1. Sustainability Plan:

• National and subnational adoption of ICED II guidelines, data sets, and the use of GIS and other tools to support energy and electrification planning

Task 1.2 - Policy and Regulatory Reform Support for Clean Energy Project

Development Indonesia has an extensive legal and regulatory framework that promotes the development of renewable energy and energy efficiency/conservation, or actions that have impacts on its development, e.g., permits, environmental impact assessments. Regulations promulgated since the beginning of ICED II (2015) have addressed hydropower, biomass, biogas, waste-to-energy/landfill gas, solar PV and geothermal power projects. MEMR has adopted new approaches to both renewable energy development and rural electrification as embodied in MEMR Regulations #38 of 2016, and #10, 12, 43, 49 and 50 of 2017 and further revisions in 2018. ICED II’s approach to this task is to support the priority policy reforms of MEMR as they relate to renewable energy by identifying areas where ICED II assistance can improve program design and/or implementation. In doing so, ICED II will provide technical support to both MEMR and PLN that can be used as a reference (e.g., renewable energy engineering costing models, estimates of the technical potential for intermittent renewable energy penetration on PLN’s grid, business models for private and local government involvement in rural electrification). In providing this support, we recognize the need to respond to requests from MEMR and PLN, and to adjust ICED II schedule to accommodate GOI milestones. ICED II supports PLN in the implementation of clean energy regulations, MEMR and the Ministry of Finance (MoF) in enhancing current government incentive mechanisms to accelerate clean energy investment. We also assist the Financial Services Authority (OJK) in its Sustainable Finance Program, including the issuance of Sustainable Finance Regulation in 2017. In addition, we will build the capacity of provincial governments in fulfilling their responsibilities under national climate change mitigation and renewable energy development programs. Figure 2.5 illustrates the programmatic work streams, implementing partners, desired outcomes and expected results for Task 1.2.




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Figure 2.4 - Overview of Task 1.2 – Policy and Regulatory Reform Support for Clean Energy Project Development

Table 2.6 - Overview of Work Streams and Support Areas under Task 1.2


WS 1.2.1: Support the development of specific incentives to stimulate financing streams for clean energy and emission reduction initiatives at the national and local levels. (Support to new financing sources and products)

a. Financing the 2030 Agenda for Sustainable Development (Bappenas) b. SDG Indonesia One (PT SMI) c. Blended Finance structure (Bappenas, OJK) d. Green Portfolio

WS 1.2.2: Support new/improved regulatory frameworks for renewable energy generating facilities

Piloting hybrid system for rural electrification: (i) Identification of stakeholders in PLN, (ii) Identification of other stakeholders, (iii) Policy and technical assessment, (iv) Business model Piloting competitive procurements: consider new or improved mechanisms to achieve low cost project proposals through structured competitive procurements (e.g., auctions)

WS 1.2.3: Assist PLN in implementing GOI policies to increase the contribution of renewable energy (Support PLN on Implementation of renewable energy IPP Regulations)

a. Implementation of Renewable Energy IPP Regulation: (i) documentation of key lesson learnt, (ii) communicate findings to PLN and MEMR units (PLN System Planning, PLN EBT, MEMR DJK) for evidence-based policy inputs

b. Implementation of Rooftop Solar PV Regulation: study on the technical and economic impacts of rooftop solar PV systems

c. Implementation of Business Model for Rural Electrification with Hybrid System: (i) documentation of key lesson learnt, (ii) communicate findings to targeted stakeholders

WS 1.2.4: Support OJK’s Sustainable Finance Program and help it formulate guidelines for the financial industry to

a. Documents on USAID support for OJK: (i) support letter to OJK & Bappenas, (ii) MOU or cooperating agreement or agreed ToR with GIZ

b. ESRA Training (continue previous activity, collaboration with other development partners)

• Enhanced/New funding sources and Incentives

• Regulatory Guidelines and Technology Standards

• Renewable Energy IPP Support

• Sustainable Financing

• Regional implementation of National Programs

• MEMR

• PLN

• Financial Services Authority/OJK

• Ministry of Finance

• Provincial/ Municipal Governments

• Improved investment climate

• Clear & efficient regulatory framework

• Increased success rate for RE IPP projects

• Increased flows of capital and new products

• Mainstreaming CE programs


• Leveraged Public & Private Sector Investment

• Polices, Strategies, Plans & Regulations


• People with Access to Clean Energy







29


promote and increase investments in clean energy

c. Green Lending Survey (continue previous activity) d. Guidelines for Evaluating PPAs (continue previous activity) e. Incubating Sustainable Finance Forum

WS 1.2.5: Within selected provinces, provide assistance in establishing two-way communications channels between subnational entities and national policymakers

a. Lesson-learned from the RUED-P development process (study report, linked with Work Stream 1.1.2 and 1.1.3)

f. Workshop to gather inputs for the study

Work Stream 1.2.1: Support the development of specific incentives to stimulate financing

streams for clean energy and emission reduction initiatives at the national and local levels

ICED II has been working to address key challenges in financing renewable energy projects. Challenges may come from two sides, i.e. availability of funding (supply) and number of feasible renewable energy projects (demand). Key challenges on the availability of fund are: the perception of the high risk of clean energy projects from lenders, low utilization of project (limited or non-recourse) financing, and limited options for structuring financing. ICED II have been focusing to address two issues. First is to improve perception of high risk by providing capacity building to lenders and second is to explore alternative option in structuring financing by introducing credit guarantee (e.g., through USAID’s Development Credit Authority or DCA) and supporting the Mutual Fund for Solar PV managed by Nikko Securities. However, the findings during the last two years indicate that challenges in demand side of renewable energy projects has becoming worse compared to the supply sides. Data from lenders shows that there is zero growth in renewable energy sectors (no new RE projects are being finance) since 2016-2017. This condition has complicated the effort to tackle challenges on supply side as there are no projects to be financed. Beginning in 2018, climate finance and its relationship to SDGs emerged as a common priority of multiple government agencies. OJK has incorporated SDG goals into the sustainable finance framework. Ministry of Finance conducted research on gap in climate finance to address the SDGs (see Table 2.7). MoF authorized PT SMI to establish SDG Indonesia One, a new program to channel concessionary financing and private funding to achieve SDG targets. Bappenas looked to revitalize its Indonesia Climate Change Trust Fund (ICCTF) to provide a grant mechanism for SDGs.




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Table 2.7 – Ministry of Finance Role in Climate Finance is to Ensure Availability of Funding for SDG

Policy Fiscal interventions GOI Investment

• Enabling policies for green investment

• Financing instrument public sector (bank/capital market)

• Subnational financing / budget

• Tax & Levies

• Royalty / leased

• Subsidies

• Fiscal incentives (Tax allowance, tax holiday, tax credit)

• Direct investment

• Public Service Obligation

• Green Budget

• Co-investment with international

• PT SMI – SDG Indonesia One

In Year 6, ICED II will support both Bappenas and Ministry of Finance. The objective of ICED II support is to develop blended finance as alternative mechanisms to stimulate financing in clean energy. ICED II support focus for MoF is through technical assistance provided to PT Sarana Multi Infrastruktur (Persero) (PT SMI) and support focus to Bappenas is through financing 2030 agenda for sustainable development and ICCTF. SDG Indonesia One. ICED II initiated its support to PT SMI as they launched SDG Indonesia One fund. The SDG Indonesia One is an integrated platform to address issues with regards to project preparation, investments and financing of SDG-related infrastructure projects. The SDG Indonesia One consists of four funds, namely, Development Funds (e.g. facility for project preparation and capacity building), De-risking Funds, Financing Funds, and Investment Funds. Currently ICED II has received formal request from PTSMI to support the SDG One and if possible to escalate the support of other USAID projects related to environment to the fund.




31

Figure 2.5 - PTSMI SDG Indonesia One Fund

Key focus of ICED II technical assistance to SDG One will be blended finance for subnational

government with the following features: promoting utilization of clean energy and or energy

efficiency, rural electrification and alignment subnational government energy planning to access

alternative financing.

Financing 2030 Agenda for Sustainable Development. The UN Secretary General has issued the

strategy for financing the 2030 agenda for sustainable development. Key contexts of the

strategy for financing the 2030 Agenda are as follows:

• The 2030 Agenda for Sustainable Development aims at a fundamental transformation of

society, and its patterns of production and consumption. This transformation requires

changes in mindsets and behaviors; realigned incentive systems; a conducive and enabling

public policy environment; and the deployment of innovative technologies that are more

energy- and resource-efficient. Investments on a massive scale are needed to create the

sustainable infrastructure and low-carbon, high-efficiency production methods that will

accomplish the transformation. Hence, financing is key to realizing the 2030 Agenda.

• This financing must be sustainable. Governments, international financial institutions, and

private financial markets should direct adequate flows of resources into sustainable

investment.

• The engagement of governments, the private financial sector and other non-state actors in

mobilizing resources for the 2030 Agenda has grown. Financial sector policymakers,

regulators and supervisors, and market participants are taking steps toward building a

more sustainable financial system. Sustainable finance has grown rapidly, as evidenced by

the explosive growth of green bonds and the development of innovative SDG-related




32

financial instruments (e.g. SDG, sustainability, and social bonds). Many financial

jurisdictions have taken explicit steps to “green” their financial systems.

• Private market participants, particularly institutional investors, are also changing their

approach, encouraging longer-term time horizons on financial markets. They support

efforts to integrate environmental, social and governance factors into business models, and

encourage the disclosure of the sustainability profile of firms in which they invest, thereby

driving changes in the way enterprises are managed.

• Progress is still insufficient and too slow. Sustainable finance is still only a small fraction of

overall financial activity in private markets, as it is only now beginning to be mainstreamed

into the business models of the financial industry.

• The finance needs for SDG investments are vast and urgent. Domestic public finance is key,

especially to providing public goods and essential services. In many developing countries,

the mobilization of domestic public resources still falls well short of requirements; and

external public resources, including official development assistance (ODA), remain essential

in many countries. It is, therefore, important to make progress towards meeting the ODA

commitments of the Addis Ababa Action Agenda.

• Beyond the funding gaps, other shortcomings hinder progress. In many developing

countries, relatively underdeveloped and weak financial systems limit the range of available

instruments for mobilizing private resources, while the weak institutional capacity to

formulate and present bankable projects impedes the ability to mobilize private

investment. Across all countries, the lack of a pipeline of sustainable, bankable projects at

scale, and of established and broadly accepted methodologies for assessing the risk of new

technologies and sustainable investment projects, hinder the mobilization of more

sustainable finance and impede the redirection of flows away from traditional, non-

sustainable investments.

Based on the above context, the Strategy formulate three major objectives to accelerate progress

in financing the 2030 Agenda, they are:

1. Aligning global financial and economic policies with the 2030 Agenda.

2. Enhancing sustainable financing strategies and investments at the regional and country

levels.

3. Seizing the potential of financial innovations, new technologies and digitalization to provide

equitable access to finance.

ICED II plans to support Bappenas as the focal point coordinator of SDG so they could address

the SDG financing objectives. ICED II approach is to mainstream and aligning OJK Sustainable

Finance to the 2030 SDG Agenda. The alignment includes establishing the Financing 2030

Agenda as the new hub of all ICED II support related to sustainable financing for investment in

on- and off-grid renewable energy projects.

ICED II will continue its work with Bappenas and SDG Indonesia One to support clean energy financing. This opportunity can be categorized as either an incentives or specific initiative that can stimulate financing stream into the renewable energy sector.




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Sustainability Plan:

• Demonstrate successful implementation of blended finance concept as alternative financing

• Managing alignment process of OJK Sustainable Finance to the 2030 SDG Agenda

Work Stream 1.2.2: Support new/improved regulatory framework for renewable energy

generating facilities

ICED II is continuing its work initiated under ICED I in terms of connecting renewable energy to the transmission and distribution system of PLN. This will include changes to both the transmission and distribution grid codes to accommodate intermittent renewable energy power generation and the studies needed to analyze the impact of renewable energy projects on system stability. It is possible that the PLN interconnection guidelines as well as new inputs to Grid Codes will be issued as MEMR regulations. Other possible new regulations address renewable energy/fossil fuel hybrid generation and rooftop solar PV. ICED II will also aim to advice MEMR from issuing unnecessary regulation to prevent more complexity which would further discourage investment. Properly developed RUED-P could improve the regulatory framework for renewable energy generating facilities, since the room for provincial government role for energy initiatives mainly based on renewable energy development and utilization. This activity relates to Work Stream 1.1.2. ICED II will conduct further study and an initiative to implement rural electrification at selected pilot sites in Year 6. The aim is to gain insights on both increasing electricity from renewable energy and expanding electricity access. The support will provide useful example and reference for provincial authorities to link electrification with economic development. This activity relates to Work Stream 1.1.2 and 1.1.3. ICED II activities in RUED-P process and rural electrification will also highlight the need to strengthen coordination among key institutions and alignment of various programs, both at the national and sub-national levels, as well as the coordination of these complex nexus of institutions and their programs. In Year 5, ICED II successfully coordinated the efforts of PLN Wilayah and provincial governments in the priority provinces through sharing data and hands-on training using the ICED II GIS tools. ICED II will continue to encourage ensuring budget allocation for energy programs in the province, identifying available socio-economic programs from various national ministries for the province in line with provincial energy initiatives, and ensuring government and non-government programs towards community readiness to precede or in parallel with an electrification program. This activity relates to Work Stream 1.1.3. ICED II, in its final year, seeks to introduce a new approach to procuring renewable energy independent power production (IPPs) that can rapidly increase the share of renewable energy while simultaneously achieving lower costs of electricity production. Indonesia, to date, has not experienced the significant price declines associated with competitive procurements such as auctions that have been pursued in many other countries. The regulatory approach has




34

progressed from Feed in Tariffs (FiTs) with direct appointment based on unsolicited proposals to limited competition and direct selection awards using a ceiling price as a reference. While such systems provide for a gradual lowering of PLN production costs on a regional basis, the solicitations still begin with an unsolicited to multiple unsolicited proposals from renewable energy IPPs. ICED II will work with MEMR DGE and EBTKE, as well as PLN, to introduce competitive procurement of renewable energy IPP capacity, energy or both. Our approach is to begin with a FGD to share the lessons learned from other countries and discuss how this can be applied within existing regulations and identify what changes in regulations are needed to facilitate auctions or other forms of solicited competitive procurements. Based on the outcome of the FGD, ICED II will work with MEMR and PLN to pilot the new form of competitive procurement in one or more of PLN’s systems/subsystems. The competitive procurement may apply to a single technology type (e.g., solar PV), multiple variable renewable energy technologies (e.g., solar PV and wind) or all resources including hydropower and bioenergy technologies. Sustainability Plan:

• Linking RUED-P and other provincial energy-related plans with RPJMD to ensure conformity of all levels of sub-national planning and budgeting to support the development and utilization of renewable energy.

• Improve the availability, quality and accessibility of data and tools to support evidence-based energy policy development and implementation, towards deployment of renewable energy and expansion of electricity access.

• A piloted competitive procurement solicitation will provide the knowledge in administering such an approach, enable price discovery regarding the price renewable energy IPPs are willing to bid, and lay the foundation for more widespread use of competitive procurements in the future.

Work Stream 1.2.3: Assist PLN to implement GOI policies to increase the contribution of

renewable energy

This work stream focuses on ICED II support to PLN headquarters (Pusat) and its regional offices in implementing MEMR policies and regulations. KEN calls for an increase in the contribution of renewable energy to 23 percent by 2025. Based on RUPTL 2019-2028, the renewable energy mix in power supply should increase from 12 percent in 2018 to 22 percent in 2028. ICED II’s support under this work stream will be to facilitate PLN’s acquisition of renewable energy generating capacity by acting as an independent advisor. Note that this work stream operates at the programmatic level and is closely linked to MEMR’s issuance of new policies and regulations. Support to individual projects sponsors and financiers is covered in Work Stream 2.1.2 and to PLN in improving business practices in Work Stream 2.1.3. ICED II will continue to provide PLN with input to its standardized PPA agreements. Together with PLN Pusat, ICED II plans to develop guidance and provide capacity building to PLN regional offices on technical reviews, system impact analysis, PPA negotiation, and communications to improve facility operations.




35

For Year 6, ICED II’s support to PLN is summarized in Table 2.8 - ICED II Support to PLN below: Table 2.8 - ICED II Support to PLN

No. Regulation Related Scope Areas of ICED II Support

to PLN

Year 6 Support

1 MEMR

Regulation

50/2017

PLN procurement of

renewable energy

independent power

production

Feasibility study review

guidelines for

hydropower, biomass,

biogas and waste-to-

energy.

Revised interconnection

guidelines

Feasibility study review

guidelines for wind power

and solar PV

Introduce new

competitive procurement

schemes

2 GR 79/2014 on

National

Energy Policy,

article 9d:

100%

electricity

access by 2020

PLN is required to

consider rural

electrification initiatives

by other institutions

Support to PLN in

electrification planning

and coordination with

provincial governments

Joint training of PLN and

provincial energy and

mining offices in Aceh,

North Sumatra and South

Sulawesi

3 Presidential

Regulation

35/2018

Accelerated Construction

of Waste-to-Energy

Projects in priority cities

Sets the framework for

projects in 12 priority

cities.

Support to waste-to-

energy projects in East

Java and South Sulawesi.

4 MEMR

Regulation 49

of 2018,

amended by

MEMR

Regulation 16

of 2019

Application process and

compensation scheme for

residential, commercial

and industrial customers

Identifying the barriers to

rooftop solar PV

development and work

with various stakeholders

(PLN, MEMR, solar PV

industry association) to

address them

ICED II study “Analysis of

Rooftop Solar PV in

Indonesia”

During Year 6, ICED II will continue its support to PLN procurement of renewable energy generating capacity under MEMR Regulation 50 of 2017. ICED II will also complete its study analyzing the technical and economic impacts of rooftop solar PV based on MEMR Regulation 49 of 2018, amended by MEMR Regulation 16 of 2019. At the same time, ICED II will monitor the progress of a draft Presidential Regulation designed to increase investment in and development of renewable energy to achieve the national target. The draft regulation is expected to address the pricing rules on renewable energy as well as PPA terms for renewable energy IPPs. Together with MEMR and PLN, ICED II will explore competitive procurements, such as auctions, that have become widely used to achieve lower selling prices for solar PV. This will be accomplished through exposure to lessons learned from other countries and application within the MEMR regulatory framework and PLN procurement processes. Sustainability Plan:




36

• Build MEMR’s capacity to design new regulations that achieve both price and investment objectives

• Provide PLN reference to international standards and best practices in interpreting and implementing government regulations.

• Build PLN’s internal capacity to design programs that are effective, efficient and workable (i.e., attractive for IPPs)

Work Stream 1.2.4: Support OJK’s Sustainable Finance Program and help it formulate guidelines

for the financial industry to promote and increase investments in clean energy

As one of the milestones of Indonesia’s Financial Services Authority’s (OJK) Sustainable Finance Road Map 2013-2019, in August 2017, OJK issued OJK Regulation on Sustainable Finance. The regulation formalizes the road map as a platform in implementing sustainable finance. It seeks to improve financial service institutions’ asset quality by incorporating sustainable approach in their portfolios. OJK’s activity plan for Year 6 is still consistent with the road map, which are policy intervention to establish follow up regulations, public outreach, capacity building, research and development, and inter-stakeholder coordination. OJK is aware of the latest challenges in renewable energy sector, which is the availability of feasible projects on renewable energy and energy efficiency. In 2018, OJK aligned its objective with the larger goals of Sustainable Development Goals (SDG) with the timeline shown in Figure 2.6.




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Figure 2.6 - Alignment of OJK Sustainable Finance Roadmap with SDGs

OJK realizes that there were several challenges in implementing its sustainable finance program: new structure of current OJK board, slow economic growth and stagnant renewable energy project demand for financing. OJK addressed these issues by issuing OJK regulation POJK No.50/2017 regarding Sustainable Finance. POJK 50 is considered as the umbrella regulation for financial sector in implementing sustainable finance. ICED II Sustainable Finance activities in Years 1-4 were based OJK Sustainable Finance Road Map, because during this period the OJK Regulation for Sustainable Finance was still under development. Since 2018, ICED II sustainable finance activities are referred to POJK No.50/2017. ICED II will focus on three main priorities of POJK No.50/2017 as stated in Article 7 of the regulation (see Figure 2.7)

Figure 2.7 – POJK No.50.2017 Priorities in Sustainable Finance

In May 2019, ICED II has facilitated a USAID courtesy meeting with OJK International – an

appointed division to manage sustainable finance and international relationships. ICED II

presented work plan for period 2019 to 2020. ICED II will support the three main OJK sustainable

finance priorities as described in Figure 2.7. Given that OJK is a not a formal ICED II partner, ICED

II support to OJK will be coordinated under Bappenas. ICED II has submitted Terms of Reference

(TOR) for OJK Sustainable Finance on June 2019, and currently awaiting formal approval from

OJK. In the meantime, OJK appointed OJK Institute – the OJK external capacity building division

– to work with ICED II in conducting trainings and researches.

Financial Product Development

Increased Capacity Financial Institutions

Improved Institutions

• Increase green portfolio

• Improved micro prudential

• Innovative instruments

• Training and capacity building

• Human capital development

• Outreach to public

• Adopted SF principal

• Standardized and institutionalized

• Reporting and monitoring

1 2 3




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ICED II will continue to support OJK using the above sustainable finance platform through specific programs. These programs are green lending baseline survey, ESRA training series, and Bali Center for Sustainable Finance (BCSF). Further discussion on BCSF will be addressed under Work Stream 2.2.3 in this report. As mention in section WS 1.2.1, ICED II plans to mainstream and align the OJK Sustainable Finance to the Financing 2030 Agenda for SDG. ICED II has solicited proposal to Bappenas and OJK, for the two agencies to sign a high-level MOU. Previously OJK Sustainable Finance based their activities and regulation on an MOU with KLHK; in 2017, however, the MOU expired and KLHK do not extend it. ICED II saw this as an opportunity for OJK to establish a new foundation for Sustainable Finance by aligning to the SDG 2030 Agenda. This would secure future work and Bappenas could provide a formal and solid guideline as they are the prompt focal point of SDG. Sustainability Plan:

• Explore to have a letter of support to OJK and Bappenas under the new collaboration of Financing 2030 Agenda;

• Mainstreaming ICED II works to other donor program for possible adoption.

Work Stream 1.2.5: Within selected provinces, provide assistance in establishing two-way

communication channels between subnational entities and national policymakers

Capacity building related to RAD GRK, RAD GRK Revision and MER RAD GRK

One of the key challenges for Bappenas and MEMR is obtaining feedback from the provinces on

their plans and inputs to the national GHG mitigation and energy policies. ICED II will continue to

support both national agencies in communicating their policies and programs by contributing in

the development of guidelines for planning, implementation and monitoring-evaluation-

reporting of energy programs, sponsoring regional forums and providing feedback on

implementation challenges. One mechanism for two-way communications is the RAD GRK and

MER trainings co-sponsored by Bappenas and ICED II. Through these multi-day trainings,

provincial Bappedas can provide feedback to Bappenas on the guidance, quality and availability

of data, and capacity of provincial governments to implement the national programs. This work

is related with Work Stream 1.1.1.

Capacity building related to RUED-P and its revision process

Like ICED II support to the Bappenas RAN/RAD-GRK Secretariat, ICED II has committed to

support the national institutions overseeing Regional Energy Planning (RUED) development,

consisting of MEMR, Bappenas, the National Energy Council (DEN), and Ministry of Home Affairs

(MoHA). A national technical team is tasked with facilitating provincial energy plans through

dissemination of guidelines, data development and planning tools, and training. ICED II will

continue its support the national institutions by expanding relevant datasets and developing

guidelines for provincial governments. This work is related to Works Streams 1.1.2 and 1.1.3.

Facilitate alignment of multiple provincial plans related to energy

At the provincial level, ICED II has been promoting the alignment of various energy plans or their

development processes. This is an on-going work that are related with the alignment of RAD




39

GRK and RUED-P of Aceh and North Sumatra. The information has been used by both the

provincial as well as national counterparts. In Year 5, ICED II supported provincial government in

aligning their energy plans in RAD GRK and RUED-P with their RPJMN and RAD SDG number 7.

Capacity building related to PPRKD

In Year 6, ICED II will continue its support to priority provinces through activities that support

outreach, communications and data gathering from municipalities and regencies, to update the

electricity access data. ICED II will also support reporting to MEMR and Bappenas on the status

of RAD GRK preparation (second round). As part of ICED II direct support to target provinces in

RUEN/RUED and RAD GRK MER, ICED II will facilitate the exchange of information on successful

approaches that other provinces can use as a reference. This activity relates to Work Stream

1.1.2.

Forum of Energy Planners

DEN Secretariat has been raising issues on a forum of national and sub-national energy planners

aimed to facilitate exchanges of data, information, and ideas. It is expected to at least maintain

the momentum and capacity building resulted from RUED-P development process in the past

few years. A more ambitious aim are initiatives or collaborations among the energy planners to

address challenges and follow through to make the energy plans evolve from document to

reality. In response to the idea, ICED II plans to explore potential support, such as in form of

secretariat activities, workshops and periodicals such as e-newsletter.


• Support the integration of RUED-P and other energy plans into RPJMD process to ensure

they become an integral part of the planning and budgeting mechanism of the provincial

governments.

• The meetings and discussions during RAD GRK, RUED, RUKD, RAD SDGs number 7 will be

encouraged as a networking initiative on energy policy planning and implementation.

2.2. Component 2: Accelerate the Mobilization of Private and Public

Sector Co-Investment in Clean Energy

ICED II has an extensive network of partners involved in clean energy project development. These include sponsors and developers, equipment suppliers, engineering and consulting service providers, financiers, hosts (the owners of the sites for agricultural biomass/biogas projects), head (national) and regional offices of PLN, MEMR (Directorate General of New Renewable Energy and Energy Conservation or DGNREEC, and the Directorate General Electricity), and provincial energy and mineral resource offices.

Objectives: To increase the mobilization of private and public investment from both

domestic and foreign sources into the clean energy sphere, to result in direct leverage,

emission reductions and energy access, as well as to stimulate the innovation and

development of clean energy technologies to sustain growth within the sector.




40

ICED II found a number of principal barriers to increased clean energy project development. Identified barriers include: 1) lack of quality projects supported by rigorous project design feasibility analyses, social and environment analyses, and grid interconnection, 2) un-attractive and predictable power purchase prices, lack of effective tax incentives, and foreign ownership restrictions, 3) limited capacity of developers to fulfil the financing terms and conditions required by lenders and/or investors, 4) lack of lenders (bank and financial institution) capacity and experience to implement and conduct proper due diligence and risk analysis of clean energy project developments, and 5) the risk assumed by renewable energy IPPs under the standard terms and conditions of power purchase agreements. All those barriers create challenges for the development clean energy projects.

ICED II has helped PLN to develop a standardized process and format for engineering cost

estimation, price negotiation, and interconnection agreement as well as project proposal

appraisals within the existing renewable energy procurement business process. ICED II has also

witnessed an improvement in the quality of consulting services as well as the competence of

banks/financial institutions will improve to such a degree that the most viable projects will not

need the same level of technical assistance as they do now. However, PLN and renewable

energy project developers have had to adapt to the changing regulations affecting projects

below and above 10 MW (e.g., MEMR Regulation 12 of 2017 which was amended by replaced by

MEMR Regulation no.43 of 2017, and finally replaced by MEMR Regulation No. 50 of 2017) that

have gone from unsolicited direct appointment to direct selection in procuring new renewable

energy IPPs and negotiated PPAs. Given the current share of renewable energy and the renewable energy regulatory and investment climate, it will be difficult for PLN to achieve 23% of electricity generation from renewable energy by 2025. In the latest RUPTL (2019-2028), PLN has planned for an additional 16,715 MW of renewable energy generation in the next 10 years, with the largest share (37%) coming on line in 2025 to meet the target (see Table 2.9). Figure 2.8 illustrates that while the share of renewable energy generation is expected to nearly double from 12.1% to 23.2%, PLN will continue to rely on coal for over half of its entire electricity generation over the next 10 years. Table 2.9 - Planned Generating Capacity Additions in Megawatts (2019 – 2028)

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total

Geothermal 190 151 147 455 245 415 2,759 45 145 55 4,607

Large Hydro 154 326 755 0 182 1,484 3,047 129 466 1,467 8,010

Small Hydro 140 238 479 200 168 232 27 20 20 10 1534

Solar PV 63 78 219 129 160 4 250 0 2 2 907

Wind 0 0 30 360 260 50 150 0 0 5 855

Biomass/

Biogas

12 139 60 357 50 103 19 5 15 35 795

Marine 0 0 7 0 0 0 0 0 0 0 7

Total 559 932 1,697 1,501 1,065 2,288 6,252 199 648 1,574 16,715

Source : PLN RUPTL 2019-2028.




41

Figure 2.8 - PLN Planned Generation 2029-2028, By Fuel/Resource Type

Component 2 operates at the project implementation and programmatic levels to achieve its overall objective and make a significant contribution to the ICED II high-level results (e.g., mobilized investment in clean energy projects, persons with access to clean energy). ICED II’s work at the clean energy project level helps achieve financial closure and/or installed capacity5. ICED II works on improving the implementation of renewable energy IPP programs, principally through PLN using standardized business practices, but also at the subnational level to scale up the introduction of new technologies using the government budget. Finally, ICED II works at the sectoral level to improve the capacity of government and private training institutions and their ability to create the workforce needed to support the increased utilization of renewable energy in Indonesia. Table 2-10 - Component 2 Target Results

Task Target Results

2.1. Advanced Project

Development and

Investment Promotion

▪ Facilitated installation of at least 400 MW of clean energy

generation capacity and at least 4.5 million tons of GHG emission

reduction estimated in metric tons of CO2, reduced,

sequestered, and/or avoided as a result of USG assistance

▪ 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.

2. 2. Increased Local Capacity

of Science, Technology,

▪ Documented assessment of the human resources needs of

relevant stakeholders and an action plan for designing and

5 Persons with access to modern energy and tons of greenhouse gas (CO2e) are also recorded once the renewable energy project achieves Commercial Operating Date (COD).

12.1%

22.5%

5.8%

59.6%

Generation Mix, 2018 (% of total)

Renewable Energy Gas Oil Coal

23.2%

22.0%

0.4%

54.4%

Generation Mix, 2028 (% of total)

Renewable Energy Gas Oil Coal

Source: PLN




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Task Target Results

Innovation and Human

Resources for Clean

Energy Growth

delivering associated technical assistance to enhance the

capacity of local organizations in providing relevant services and

trainings in 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.

Task 2.1 - Advance Project Development and Investment Promotion ICED II serves as an unbiased advisor (“honest broker”) and facilitator among the key stakeholders, i.e., project developers, financial institutions, clean energy technology vendors, engineering, procurement and construction (EPC) contractors, PLN, regional/local governments, and relevant line ministries, to produce a pipeline of viable clean energy projects. ICED II also links developers with potential investors/financial services as well as link developers, investors, and financial services with qualified and experienced clean energy technology vendors and EPC contractors. ICED II builds on the extensive project pipeline and database established in ICED I and continued in ICED II; assists mature projects (projects that are in the final stages of development); and continues to track the projects that have reached completion during the previous program cycle for documenting impacts. Figure 2.9 illustrates the programmatic work streams, implementing partners, desired outcomes and expected results for Task 2.1. Figure 2.9 - Overview of Task 2.1 – Advance Project Development and Investment Promotion




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Work Stream 2.1.1: Improve and maintain a database of viable clean energy projects (pipeline)

with Geographic Information System tools.

ICED I created an internal database of clean energy projects that includes key information on project status, technology employed, capacity, location, etc. It is used primarily to manage information on the pipeline of projects that have received (or are receiving) ICED I’s technical assistance. ICED II will expand the database to include more projects, modify it to use standard references of projects status, and maintain it so that ICED II can generate reports on the status of all projects. During Year 6, ICED II intends to expand the database to support MEMR and PLN by including all projects that are registered through both solicited and unsolicited processes and link the status with major milestones such as the Electric Power Supply Business License (IUPTL), power purchase agreement (PPA), financial close, and commercial operating date (COD). These milestones have become embedded in the new MEMR regulations for hydropower, biomass and biogas, and solar PV. ICED II will propose to include projects that are funded and/or approved by MEMR and PLN in the GIS and database, thus providing a rich information management system on grid-connected renewable energy. Given the shift in ICED II assistance from working on projects in the early stages to the final stages of development, ICED II will make the IUPTL the first stage in the tracking system. ICED II’s Clean Energy Database will be enriched with key information such as links to Google maps, ICED II’s Technical Assistance report, and improved capability to generate project status by converting data in Microsoft Excel format into database format or Microsoft Word format. Access to the database will be designed specifically so that a different level guest can only have

• Technical advice on project development

• Investment and risk analysis

• System planning and grid integration

• GIS for monitoring RE projects

• Financing matchmaking

• Project developers and sponsors

• Banks and financial institutions

• PLN (Pusat and Wilayah)

• MEMR

• Provincial/ Municipal Governments

• Improved project design and feasibility study

• Improved & increased RE lending portfolios

• Increased penetration of RE generating capacity

• New business models for projects/systems

• PPPs and investment in infrastructure


• Leveraged Public & Private Sector Investment

• RE Capacity Installed or Rehabilitated

• Current & Projected GHG emissions reduction to 2030

• People withAccess to Clean Energy







44

access to different level information. Any guest from public may only access project information that already been publicly informed. The database will be put online in ICED website so that any guest that has been granted with guest level access may get information of the clean energy project status, capacity, location, etc. With PLN and MEMR, ICED II will explore the possibility of creating on-line access to a shared geo-referenced database and “dashboard” that will provide up-to-date information on renewable energy project development activities. ICED II will continue to add projects to the ICED II Pipeline database through technical assistance to project developers/sponsors, investors, clean energy technology vendors, contractors, banks and financial institutions, MEMR, PLN and provincial/local governments. We plan to add the following project types to ICED II geo-referenced database:

• Hydropower projects that have licenses and signed PPAs

• Wind power projects that have licenses and signed PPAs

• Geothermal concession areas and projects seeking PPA renegotiations

• Waste-to-energy and landfill projects solicited by municipalities

• Solar PV projects proposed after the new MEMR regulations are issued

• Biomass and biogas to electricity projects

• Other projects whose progress MEMR and/or PLN want to track through the development process (e.g., tendered, awarded concession, license, PPA, financial closure, commissioning).

As of September, 2019, the ICED II Clean Energy Project Database contained 248 clean energy projects with a combined 2,678 MW of generating capacity. Information on many of the projects in the database, as well as specific information on all projects, was obtained through mutual non-disclosure agreements. ICED II plans to maintain the integrity of this information as ICED II develops a template for a similar database for ICED II key partners (MEMR and/PLN). The database will be based on information that is housed in MEMR and PLN that will help to monitor the progress of grid-connected renewable energy projects. This database could also serve as a key source of information for the Annual Status Report for Grid-Connected Renewable Energy Projects (Work Stream 3.7). In Years 4 and 5, ICED II will implement its commitment to transfer the ICED II database content and/or structure to the MEMR DGREEC.




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• Transfer of the ICED II database to MEMR and expansion to include all renewable energy IPPs

• MEMR commitment to update and maintain the database, and generate reports on the progress of renewable energy project development in Indonesia

Work Stream 2.1.2: Provide advisory services, technical assistance and capacity building to

project developers/sponsors, banks and financial institutions, and equipment suppliers and

service providers

Under this work stream, ICED II provides project-level technical assistance (TA) to the clean energy projects included in the ICED II database (see Work Stream 2.1.1) and to new mature clean energy projects. The support covers all renewable energy technologies and resources, namely hydropower, biogas, biomass, wind, solar PV, geothermal, municipal solid waste to energy, and hybrid power. Table 6 summarizes the anticipated technical assistance under this work stream. Since the beginning of the project in 2015, ICED II has provided TA to 248 clean energy projects with total capacity equivalent of 2,678 MW that spread across the country as depicted in Figure 2.10 below. By ICED II’s TA to those projects, 28 clean energy projects with the total capacity 559.6 MW have reached its FCs with leveraged public and private sector investment of $1.5 billion. The result on leveraged public and private sector investment above exceeds ICED II project target which is only US$ 800 million for the whole ICED II project life. Also by ICED II’s TA to those projects, clean energy projects have achieved its Commercial Operating Dates (CODs) with installed capacity of 299 MW as of September, 2019.




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Figure 2.10 - Map of ICED II Project Pipeline

Table 2.11 below shows the status, according to PLN, of various renewable energy projects as of

March 2019. It includes projects at the stages of planning (pre-PPA), PPA, Financial Close,

Construction and Operating. Such data is compiled on an ad-hoc basis with limited efforts to

verify the status of individual projects. Table 2.11 - Progress of Renewable Energy Projects (as of March 2019)

Type of

Generator

Planned PPA Financial

Close

Construction Operating Total

Geothermal 2.227 0 1.720 660 1.915 6.522

Hydro/Pumped

Storage

5.221 0 350 2.439 4.084 12.093

Small Hydro 871 108 180 375 427 1.961

Solar PV 323 0 0 45 25 393

Wind 95 0 0 60 70 225

Wind or Solar

PV

1.289 0 0 0 0 1.289

Waste-to-

Energy 249 0 0 10 18 276

Biomass/Biogas 460 41 10 25 181 716

Marine Energy 7 0 0 0 0 7

Total 10.802 149 2.259 3.554 6.718 23.482

Source: PLN, March 2019




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Table 2.12 - Technical Assistance under Work Stream 2.1.2

Project Type/

Assistance Area

Technical Assistance

Hydro Power ▪ Support project developers and banks/financial institutions by reviewing

project feasibility studies, detailed engineering designs, interconnection

studies and other project documents.

▪ Support hydropower project developers in the development of digital

topographic maps of their sites with unmanned aerial vehicle (UAVs, drones)

as a new, more accurate and economic means of analyzing topography.

▪ Link mature hydropower projects with investors/financial institutions.

▪ Extend matchmaking activity by introducing qualified hydropower technology

vendors and qualified contractors to project developers, investors, banks, and

financial institutions.

Solar PV ▪ Support project developers and banks/financial institutions by reviewing

project feasibility studies, detailed engineering designs, interconnection

studies and other project documents.

▪ Link mature Solar PV power projects with investors/financial institutions.

▪ Extend matchmaking activity by introducing qualified Solar PV power

technology vendors and qualified contractors to project developers, investors,

banks, and financial institutions.

▪ Support PLN’s identification and solicitation of solar PV projects, as well as

review of unsolicited projects on a business-to-business basis.

▪ Assist PLN in its reviewing solar PV feasibility studies using standardized

evaluation tools (see WS 2.1.3)

▪ Support developers and PLN in assessing impact of connecting projects to

PLN’s 20 kV medium voltage grid.

Biomass,

biogas/landfill

gas and

municipal waste-

to-electricity

▪ Work with selected project developers, banks and financial institutions, and

PLN to identify gaps in project design and planning, and investment risks

associated with project developments

▪ Extend matchmaking activity by introducing qualified

biogas/landfill/biomass/waste-to-electricity technology vendors and qualified

contractors to project developers, investors, banks and financial institutions.

▪ Assist PLN in its reviewing Biomass, biogas/landfill gas and municipal waste-to-

electricity feasibility studies using standardized evaluation tools.

▪ Support developers and PLN in assessing impact of connecting projects to

PLN’s 20 kV medium voltage grid.

Wind ▪ ICED II is supporting PLN in the analysis of the impact on PLN’s transmission

system of wind power plants on transmission systems.

Hybrid ▪ Extend matchmaking activity by introducing qualified hybrid technology

vendors and qualified contractors to project developers, investors, banks and

financial institutions.

▪ Assist PLN in its reviewing hybrid feasibility studies.




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Project Type/

Assistance Area

Technical Assistance

Capacity building ▪ Maintain and build bank and financial institution partners’ capability in

reviewing project funding applications and investment opportunities.

▪ Provide training to project developers and consultants in feasibility studies

and interconnection studies


• Disseminate the lessons learned on Renewable Energy Generation Plant (REGP) development through booklets, short video course, and open public seminar for lenders, investors and project developers.

• Disseminate approaches/methods/tools for REGP review/analysis through booklets, guideline, short video course, training modules and open public seminars for project developers.

• Collaborate with MEMR, PLN, OJK and others through other project donors’ programs to institutionalize the lessons learned on REGP development.

Work Stream 2.1.3: Provide technical assistance to PLN in establishing improved and

standardized business practices for engagement with renewable IPPs

This work stream provides program-level technical support to PLN in implementing programs for renewable energy IPPs. PLN has plans to add 16,715 MW of renewable energy generating capacity between the years 2019 to 2028 (PLN RUPTL 2019-2028). Variable renewable energies (solar and wind power) present new challenges to PLN due to their intermittent availability. PLN’s regional offices (Wilayah) have an increased responsibility for evaluating feasibility studies for interconnecting and purchasing power from small- and medium-scale (up to 10 MW) renewable energy generating plants. At the same time, they are responsible for planning distribution network expansion, including grid extension and upgrades, and new substations, including inputs to annual updates of the PLN RUPTL. PLN is also considering new technologies such as hybrid renewable-fossil fuel generation. PLN should adapt its strategy, approach and procedure in the RE procurement process to align with new MEMR regulations on PPAs (MEMR Regulation 10/2017) and renewable energy (MEMR Regulation 50/2017). Based on current regulations, most RE procurement should be done by direct selection (i.e., the project opportunity is offered to multiple pre-qualified project developers through a competitive procurement) while some should be procured through direct appointment (i.e., offered on a sole-source basis to the sponsor of a project where the selection was done previous such as geothermal concessions by MEMR or municipal solid waste by the city government). Figure 2.11 below shows the PLN RE procurement decision tree, a process based on the regulation of the board of directors of PLN number 022.P/DIR/2017.

Figure 2.11 – Renewable Energy Procurement Processes (based on the regulation of the board of directors of PLN number 022.P/DIR/2017)




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ICED II works with PLN’s Renewable Energy, Planning and IPP Divisions, as well as regional planning and operations and transmission and dispatch operations centers at the national and regional level to identify specific areas where ICED II can support improved and standardized practices for small-, medium- and large-scale VRE projects. ICED II assistance includes developing tools for evaluating feasibility studies, preparing solicitation/procurement documents, and supporting PPA negotiations and reviews of interconnection studies. ICED II approach is to work with PLN to design new or improved business practices and standard operating procedures (SOPs), to get PLN senior management to formally adopt those SOPs, and then to conduct classroom and hands-on training to transfer ICED II expertise and tools to the relevant units in PLN. ICED II work with PLN expanded in Year 5, and it also extended to the MEMR DG for Electricity. Topics that initially started with renewable energy generated requests for assistance that expanded to more fundamental utility planning, procurement and operations functions. Below is list of the area of assistance that is a continuation of work initiated in prior years.

• System impact study for variable wind and solar PV power projects on the transmission system

• Distribution System Planning Guidelines

• Rooftop solar PV planning and integration

• Benchmarking Performance of Thermal Power Plants

• Power System Analysis

• Blackout Recovery

• Transmission System Grid Codes

• Distribution Code (new) In Year 6, ICED II will continue its support to PLN, with parallel assistance to MEMR DG Electricity through the completion of draft guidelines, facilitation of PLN and/or DGE adoption and capacity building programs. ICED II will also complete its work with PLN and MEMR DG EBTKE in assessing the economic and technical impact of rooftop solar PV power in residential, commercial, and industrial buildings from both the PLN and customer perspective.




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ICED II will also complete its set of Feasibility Study Review Guidelines that began in previous years. To date, ICED II has completed, transferred and trained PLN on the use of specific guidelines for hydropower, biomass, biogas and waste-to-energy. In Year 6, ICED II will complete the guidelines for wind and solar PV, and if possible hybrid renewable energy systems (e.g., solar PV–diesel–battery). The activities in this work stream are linked to Work Streams 1.2.3 and 2.1.2. Sustainability Plan:

• Collaborate with PLN Learning Center in the development of the guidelines, video course, and training modules

• Collaborate with PLN RE & Planning Division for providing training of trainer.

• Collaborate with PLN RE division in the development of PLN regulation on RE procurement procedure.

• Collaborate with MEMR DG Electricity to ensure guidance and SOPs are encouraged and, in some cases, enforced through government regulations.

Task 2.2 - Increased Local Capacity of Science, Technology, Innovation and

Human Resource for Clean Energy Growth This task is designed specifically to support improvements in science, technology and innovation in clean energy project (and program) surveying, planning, design, feasibility assessment, integration, communications, operations and dispatch, and monitoring and verification. The work streams and activities in this task are primarily focused on training needs assessments, assessing and identifying possible ICED II training delivery partners, developing standardized curricula that can be used by ICED II training delivery partners, and possible certification or accreditation of the training course or program. (Please note: ICED II training workshops are discussed under other related work streams in Components 1 and 2). Figure 2.12 illustrates the programmatic work streams, implementing partners, desired outcomes, and expected results for Task 2.2.




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Figure 2.12 - Overview of Task 2.2 – Increased Local Capacity of Science, Technology,

Innovation and Human Resource for Clean Energy Growth

Work Stream 2.2.1: Conduct initial landscape assessments of GOI agencies, industry

associations, and academia to identify capacity-building needs to promote S&T advancements in

energy planning, modeling, integration, etc.

ICED II has held several initial meetings and collaborative workshops with PLN to identify the needs for technical assistance as well as the capacity building needs for PLN staff. This is in line with ICED II activities under work streams 2.1.3. ICED II is working with the PLN Corporate University and relevant PLN units to assess the human resource capacity gaps and capacity building needed to implement the various activities ICED II is supporting PLN in terms of new guidelines, methodologies and standard operating procedures. As the ICED II assisted approaches need to be reinforced in PLN business processes with supported training provided by PLN Corporate University. ICED II is also supporting MEMR NREEC Energy Conservation Division develop the competency standards for Measurement and Verification of energy efficiency projects. The competency standards are needed for assessment of government facilities or facilities that are complying with government regulations. During Year 6, ICED II will working with specific Indonesian universities and energy sector associations to transfer the capacity building programs and training modules to local institutions that can continue to strengthen PLN, MEMR and the private sector.

• Energy & electricity planning

• Renewable energy project design

• Renewable energy project evaluation

• Renewable energy grid integration

• BPESDM

• PLN training Centers

• Education institutions

• Industry association

• Suppliers of innovative technologies and services

• Roadmaps for improved capacity

• Institutionalized ICED II training programs

• Scale up and replication of innovations

• Improved planning and forecasting


• Persons receiving CE training

• Number of laws, policies, strategies, plans, or regulations addressing climate change








52


• Transfer ICED II training materials to PLN Corporate University, Indonesian universities

and energy sector associations

Work Stream 2.2.2: Work with key relevant national/subnational government entities, PLN and

industry associations to identify specific renewable energy and energy conservation technology

innovations that will be crucial for rapid deployment of domestic clean energy capacity, and

develop road maps and/or pilots for deployment and scaling-up, as well as to assess their

individual needs for assistance in strengthening human capacity to support such innovations

This work stream involves introducing and/or advancing the use of innovative tools and technologies that have the potential for greatly increasing the adoption of renewable energy in Indonesia. ICED II has identified the following innovations that have become part of the ICED II work program:

• Applying GIS to rural electrification planning for subnational governments.

• The use of Unmanned Aerial Vehicles (UAV or Drones) for topographic mapping. ICED II has demonstrated the use of UAV offers a fast, accurate, and optimal alternative method for collecting topographic data. UAV produces a geo-referenced map that contains important information (such as topography, contour, DSM, DTM, and DEM). These data are beneficial as baseline to observe surface’s condition, slope, volume and height of certain location.

• Development of Indonesian Nasional Standard Draft (RSNI) for Performance Analysis of split Air Conditioning for residential and commercial buildings.

• Piloting Automatic Generation Control System in isolated grid system to demonstrate improved power quality and increased integration of variable renewable energy, e.g., solar PV

• Develop performance benchmarking tools for PLN and IPP non-renewable power plants to increase efficiency and reduce emissions

• Support MEMR DG Electricity in the study of downstream infrastructure and business licensing related to electric vehicles (EV)

Sustainability plan:

• Dissemination of the lesson learned on the use of UAV for topographic mapping

• Application of SNI for testing and rating of Minimum Energy Performance Standard for split Air Conditioning for residential and commercial buildings

• Dissemination of results from AGC pilot for adoption by PLN in other isolated grid systems

• Adoption of new MEPS testing standards for split AC units

Work Stream 2.2.3: Conduct an inventory of education/training programs to provide training in

specific clean energy technology production and maintenance

ICED II has compiled information about relevant education and training programs, as well as institutions, in Indonesia that offer programs or courses related to renewable energy and/or energy efficiency. The activity produced a list of 27 institutions with details on their program/courses, targeted audience, and the nature of the program. The institutions included




53

government bodies, university/research center, industry associations, and the private sector. In addition, ICED II has identified three institutions as partners to develop clean energy training modules: 1) MEMR’s Directorate of Various Energy; 2) the Institute for Economic and Social Research – Faculty of Economics and Business, University of Indonesia (LPEM UI); and 3) PLN Corporate University.

LPEM UI is the ICED II subcontractor for delivering the ESRA bank training under the OJK

Sustainable Finance Program. LPEM UI has refined the training modules and has begun to

incorporate the material into courses offered at UI. Through LPEM UI’s leadership, other

universities and training institutions have adopted the ESRA training modules in internal use.

With Directorate of Various Energy, ICED II has conducted a TNA for government funded off-grid

solar PV systems. During Year 4, ICED II has developed the training modules and guidelines for

conducting feasibility study for off-grid solar PV systems. ICED II has also conducted training-for-

trainers for local government, universities and consultants interested to access the government

funded solar PV systems. During Year 5, ICED II finalized the guidelines for conducting feasibility

study for off-grid solar PV systems.

In Year 6, ICED II will continue its support, as needed, to the Bali Center for Sustainable Finance (BCSF) under a framework of OJK sustainable finance platform, as described in work stream 2.1.4. ICED II has identified certain activities which is focusing on improving Udayana’s capacity and link activities to reach regional part surrounding Bali. One such activity is support to Bali provincial government in preparing regulations related renewable energy. Sustainability plan:

• MEMR’s Guideline for Development of Feasibility Study of Off-grid Solar PV Power Plant for Regional Electrification.

• Standard process for developing national certification of Certified Investment Grade Energy Auditor.

• Documentation and evidence base process of Off-Grid Solar Power Feasibility Study for Micro/Mini/Isolated grid for rural electrification.

• Explore to have an MOU with OJK to solidified objectives and agreed on sustainability of projects beyond ICED II program.

Work Stream 2.2.4: Provide technical assistance to stakeholders in data verification/analysis by

developing their capabilities in GHG mitigation/clean energy data collection and modeling tools

to increase their capacity for evidence-based decision making

During Year 6, ICED II will continues its work in applying analytical tools such as models and GIS to support ICED II partners improve their decision making. Examples include Long range Energy Alterative Planning (LEAP) models for energy planning and greenhouse gas forecasting at the provincial level; power system planning models at the distribution and transmission level for, respectively, for grid integration of renewable energy generation; and GIS for rural electrification planning and PLN medium voltage (20-kV) network mapping. ICED II has also developed its own “spreadsheet” models to assist PLN in developing engineering cost estimation for proposed renewable energy projects and for sizing solar PV systems for isolated diesel grids.




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ICED II is developing guidelines for PLN to conduct and evaluate the impact of proposed renewable energy projects using various power system planning software such as ETAP, PSS SYNCAL, DigSilent Power Factory and PSSE software. While the various software is already in use by PLN, its application for renewable energy, particularly variable solar PV and wind, requires additional modules not current in use. As noted earlier, ICED II continues to support the use of GIS as a tool for analyzing and presenting the results of electricity distribution and electricity access planning and mapping. ICED II has developed guidelines as part of the RUED process including updated national data sets on village electrification. In the current workplan, ICED II will support PLN in preparing new Distribution System Planning Guidelines that will include GIS as a planning tool. Sustainability plan:

• Documentation and research paper Method in Developing Topographic Map for Mini Hydro Power Plant Projects using Drone

• Sustainable RE project database and map that are embedded within MEMR One Map system or other institution

• Guidelines on use of Geospatial Analysis for rural electrification planning, including updated data sets, and for PLN Distribution System Planning

2.3. Component 3: Outreach on USAID and USG Inter-Agency Activities

in Indonesia’s Energy Sector

Indonesia’s clean energy sector has become a focal point for the USG, other donors and multilateral development banks. With the increasing sources of funding and assistance, an accurate and up-to-date understanding is needed to ensure ICED II is implemented effectively. This requires regular communications and sharing of activity plans, event schedules, and draft reports and deliverables. Knowledge of other projects’ activities is also important as input in preparing the ICED II Work Plan. During Year 6, ICED II’s communication and coordination strategy involves a three pronged approach: 1) increase access to ICED II reports and other information products; 2) institutionalize the relationships between ICED II partners and their counterparts in the U.S.; 3) reposition ICED II and USAID’s clean energy program to align with the Indo Pacific Cooperation framework and Asia EDGE6, as well as priorities of USAID’s global energy program; and 4) improve the understanding and appreciation and communication to ICED II GOI partners relative to USAID assistance in the energy sector.

6 Enhancing Development and Growth through Energy (EDGE)

Objectives: To develop a platform that allows USAID/Indonesia to collect information on

the aggregate approaches to build a low-carbon energy system and the impacts of these

collective interventions, and communicate them to a wide range of stakeholders.




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ICED II increase its communications effort to promote achievements by ICED II partners by reaching out to its project stakeholders, from government units and project developers to financial sector. ICED II will implement tactical communications plan by providing support to high-level events, developing and distributing quarterly e-mail blasts, holding media gathering events, and developing activity updates that will be tailored to feed stakeholders with project-related achievements. With regards to events that engage the media, ICED II will closely coordinate with USAID Development Outreach and Communications (DOC) through ICED II’s Contracting Officer’s Representative (COR). Component 3 has seven work streams. Table 2.13 lists the minimum associated target results for Component 3.




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Table 2.13 - Component 3 Target Results

Task Target Results 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

• Forums and other public outreach campaigns to inform local stakeholders about GOI and USG collaborative efforts.

Work Stream 3.1: Assist an annual coordination forum of USG agencies engaged in Indonesia’s

climate change mitigation and clean energy activities

In Year 6, ICED II will support the planned U.S. – Indonesia Energy Policy Dialogue. The event, organized by the U.S. Department of Energy and Department of State will highlight ICED II programs and achievements, as well its support to various Government of Indonesia partners. ICED II will also continue its support to USAID in organizing events to highlight the role of USAID Indonesia in renewable energy development. ICED II plans to invite high level USAID Indonesia’s staff such as USAID Mission Director and Deputy Mission Director or visiting USAID advisors from Washington D.C. to visit select renewable energy projects to showcase ICED II support to renewable energy development in Indonesia and publicize these through the media. ICED II will organize a closing event that brings together all the partners and highlights ICED II achievements. ICED II will also allocate support for one high level event that is mainly organized by a project stakeholder. Sustainability Plan:

• ICED II programs and achievements will lay the foundation for the new USAID Energy Activity under the Asia EDGE initiative.

Work Stream 3.2: develop a system to document, track and monitor progress of projects

assisted under previous USAID clean energy program and ICED II pipeline

This work stream was designed to build upon ICED I’s process for reporting results on projects that achieved financial closure and commissioning, for leveraged financing, access to clean energy, and GHG emissions reduction. Clean energy projects assisted by ICED I that have achieved commissioning prior to ICED II’s implementation, will continue to generate results in terms of annual GHG emissions reduction throughout ICED II’s period of performance. In addition, clean energy projects that have previously achieved financial closure are expected to complete construction before ICED II ends. Those projects will contribute to installed capacity (MW), access to clean energy, and annual GHG emission reduction.




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• The database will be transferred to MEMR for its use in monitoring the progress of grid-

connected renewable energy projects. (See Work Stream 2.1.1).

Work Stream 3.3: Manage, Improve and Expand ICED II Website and Other Communications

Activities

ICED II is now in its final year of the project life. In Year 6 ICED II will continue promote the accomplishments of its partners in public sector i.e. the government units and private sector i.e. the project developers and financial community. ICED II will repurpose its website posts and distribute the posts quarterly through electronic newsletter with links to ICED II website and social media channels. The newsletter will cover ICED II activities, events, and newsworthy developments in renewable energy in Indonesia. At every end of quarter, ICED II will distribute the newsletter to ICED II contact database, with focus on Indonesian and U.S government counterparts (especially the Power Working Group), finance community, and select individuals in USAID Indonesia and its head office in Washington D.C. ICED II will continue identify stories that promote self-reliance, create impact, and illustrate project successes for further dissemination to USAID platform. These will include videos and stories developed by other USAID offices or through USAID Development Outreach Communication office. ICED II will continue developing a series of “Pioneer Profiles in Indonesia’s Renewable Energy Development”. The profiles will feature individuals among ICED II counterparts i.e. government staff, private sector staff, including financial institutions become pioneers in advancing renewable energy in Indonesia. The profiles will highlight initiatives and actions that they have done and how they make a difference. To further disseminate key topics and issues in renewable energy to the wider public, ICED II will start engaging journalists through bi-annual media gathering events. Through such events, ICED II aims at presenting well-structured case that will help the public understand key issues in renewable energy. In addition, ICED II also plans to sponsor research on topics relevant to renewable energy development for further release in a media event. Finally, ICED II will engage a public communications and outreach subcontractor to facilitate translating ICED II achievements to a broader set of stakeholders including the public. Since this is the final year of the project, ICED II will organize a closing event that captures the accomplishments over the life of the ICED II project. Understanding that USAID intends to have a new energy project after ICED II, the closing event may also serve to announce the new energy project.




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• The stories that ICED II produced can feed into USAID’s larger success story platform for wider distribution and provide proof of success in the agency’s intervention in Indonesia’s energy sector.

• Prepare the web hosting agreement for the ICED website for at least 18 months after the end of ICED II period of performance.

Work Stream 3.4: Identify Areas of Collaboration with Other USAID Environment Programs

and Develop Joint Initiatives

ICED II has collaborated with several global and regional USAID programs on renewable energy. The strategy is two-fold. First, global and regional programs that seek to include Indonesia in their scope of work must contact USAID Indonesia. They are referred to ICED II for further efforts to cooperate. In this case, ICED II serves as the local liaison with USAID partners in the design and execution of the assistance to ensure that the maximum benefits are achieved. The second strategy involves ICED II identifying USAID resources that would be beneficial to ICED II partners and are in line with ICED II work plan. In these cases, ICED II reaches out direction and informs USAID of the possible areas of collaboration. To date, the joint initiatives have included working with the Sector Reform and Utility Commercialization (SRUC) in training on the PLN Internal Guidelines for Geothermal Renegotiation, Private Financing Advisory Network (PFAN) on street lighting, and PLN and the United States Energy Association (USEA) on Utility Executive Exchange Program (UEEP). It has also included sponsoring Indonesian partner delegates to the annual Asia Clean Energy Forum, organized by the Asian Development Bank, as well as training organized by NREL and the RDMA Clean Power Asia. ICED II has also explored joint initiatives with the RDMA Clean Power Asia and the USAID Greening the Grid program. During Year 6, ICED II will support the USAID Scaling Up Renewable Energy (SURE) Variable Renewable Energy Forecasting pilot program. ICED II will also continue to facilitate the PLN internship program with CAISO. ICED II will finalize the joint study on the economic and technical impact of rooftop solar PV with the U.S. National Renewable Energy Laboratory (NREL) and Lawrence Berkeley National Laboratory (LBNL) which receive funding from USAID Washington. ICED II is collaborating with the USAID Scaling Up Renewable Energy (SURE) project to pilot a variable renewable energy (VRE) forecasting for solar PV and wind power generation in South Sulawesi. ICED II will coordinate with SURE project to conduct an FGD on competitive procurement by bringing government officials and practitioners from other countries to share their lessons learned and advice for Indonesia. Finally, depending on the timing, ICED II will support a new USAID Indonesia initiative under the National Association of Regulatory Utility Commissioners (NARUC).




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• Transfer ICED II support to partnership programs and joint activities may have schedules that extend beyond the ICED II period of performance.

Work Stream 3.5: Identify Areas of Collaboration with Other Donors/International Finance

Institutions and Develop Joint Activities

In the past four years, ICED II identified and worked with various international donors and multi-lateral lending institutions that has been active in Indonesia’s energy sector. They have been providing similar assistance and conducting intervention in renewable energy sector, climate change policies and financing, energy efficiency, access to energy, renewable energy grid integration, and so on. In Year 6, ICED II will continue support U.S. Foreign Commercial Service in advising U.S. companies that are interested with the Indonesia’s renewable energy market directly and through U.S. Power Working Group. ICED II will continues its collaboration with other donors such as UNDP on the benchmarking of power plants. In our support to OJK, ICED II will coordinate with Global Green Growth Initiative, IFC, World Wildlife Fund, and UKCCU. ICED II routinely meets with representatives of the Asian Development Bank (ADB), the World Bank, Danish Embassy, GIZ and others to coordinate activities and avoid overlapping assistance. ICED II support to PLN in preparing Distribution System Planning guidelines is linked to the World Bank Results Based Loan. Joint activities in the introduction and implementation of the new guidelines is a possible area of collaboration in Year 6. Sustainability Plan:

• Through donor coordination and linking ICED II technical assistance to multilateral development bank lending, ICED II will leverage its resources and enable a continuation of its activities.

Work Stream 3.6: Support USAID’s and the GOI’s Clean Energy Working Group, to be

Established under the CDCS’s Bilateral Agreement

ICED II has supported USAID in setting up the institutional framework with the GOI for implementing USAID’s Clean Energy Program. The framework is governed by the Individual Arrangement between USAID/Indonesia’s Environment Office and the Deputy Minister for Maritime and Natural Resources-Bappenas for the entire Environment Program portfolio, and the subsequent Technical Arrangement between USAID and MEMR as the technical counterpart agency, which established a Technical Team for Clean Energy (Tim Teknis). The Tim Teknis comprises MEMR, Bappenas, PLN and other line ministries or agencies participating directly as the GOI counterparts in the implementation of ICED II and other USAID Clean Energy Program project activities. In the Tim Teknis meetings, ICED II seeks feedback on its annual work plan and present its most recent progress, achievements and results. In addition, the regular meeting will also discuss




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technical subjects on selected ICED II work areas. ICED II is preparing the documentation for Hand-Over Certificate of USAID Grant (BAST) to cover the years 2015-2018. ICED II will prepare documentation for 2019 and 2020 during the period of this work plan. Sustainability Plan:

• Not applicable since it is limited to the period of USAID Indonesia’s clean energy program. The Activity Updates could be a good alternative in managing coordination and communication between USAID projects and their government stakeholders.

Work Stream 3.7: Prepare Annual Review of the State of Renewable Energy in Indonesia

ICED II has contributed to several independent reports on the status of Indonesia’s renewable energy sector by reviewing draft copies and providing addition information and insight. These include efforts by Bloomberg Energy, the Global Green Growth Initiative, and the International Renewable Energy Agency. In addition, PLN publishes annual statistics on the power sector and MEMR publishes an annual Handbook of Energy and Economic Statistics. In the view of ICED II, none of these assessments or publications effectively monitors the progress of grid-connected renewable energy project development. Due to the lack of market activity, ICED II has delayed the Annual Renewable Energy Review and Outlook since there is limited progress to document. ICED II has determined to continue an internal research to produce the document with input from all ICED II partners including, but not limited to: MEMR, PLN, project developers, banks and non-bank financial institutions, trade and professional associations and other sources of information. ICED II has valuable insight and trusted relationships with all the major stakeholders in the renewable energy sector. Two publications were issued by other organizations recently that calls into question the value of a separate ICED II report The Institute for Essential Services Report published Indonesia Clean Energy Outlook Reviewing 2018, Outlooking 2019. BPPT published Indonesia Energy Outlook 2018. PWC and Deloitte publish annual outlooks for Indonesia’s power sector. For ICED II to produce a truly unique and meaningful publications, it should be linked to the actual renewable energy projects under development and operating in Indonesia. ICED II will explore preparing such a report with PLN and/or MEMR. This activity will be linked to the transfer of the ICED II Renewable Energy Database (see Work Stream 2.1.1)




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Sustainability Plan: ● Sustainability will be linked to the adoption of a renewable energy project database

where information on project status is regularly reported through PLN and MEMR

2.4. Clean Energy Technology and Innovation Fund ICED II includes a Clean Energy Technology and Innovation Fund (CETIF) as a discretionary fund to complement activities under Components 1 to 3. The CETIF will enable ICED II to respond to opportunities and requests that are beyond its in-house resources but are directly related to the achievement of one or more of the ICED II target results. A separate Innovation Fund Management Plan and Grants Manual provides details on the CETIF in terms of the types of qualified activities, the criteria for selecting and prioritizing them, cost sharing requirements, as well as the mechanisms for dispersing the CETIF such as subcontracts, grants under contracts, and fixed price purchase orders.

Table 2.14 - Activities Funded to Date through the CETIF* [REDACTED]

*- As of October 2019

2.5. Gender Action Program ICED II has produces Gender Self Efficacy Assessment Reports in trainings and workshops based on the results of participant surveys. ICED II continues using this method to collect the Gender Self-Efficacy Assessment. In Year 6, ICED II will continue collecting Gender Self-Efficacy Assessment in its training and workshop activities for events with more than two female participants,




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3. DETAILED WORK PLAN FOR YEAR 6

(OCTOBER 2019 - SEPTEMBER 2020)

3.1. ICED II Administration

ICED II Additional Staffing

We have identified the need to recruit and seek approval for proposed personnel as shown in

Table 2.1 - ICED II Personnel Recruited. It is anticipated that ICED II may need to recruit

additional staff during Year 6 to respond to requests from key partners.

Table 2.1 - ICED II Personnel Recruited [REDACTED]

ICED II Additional Subcontracting

It is anticipated that ICED II may need to request the services of additional subcontractors during

Year 6 to respond to requests from key partners as shown in Table 3.2 -Potential Additional

Subcontractor Services Requested for Year .

Table 3.2 -Potential Additional Subcontractor Services Requested for Year 6 [REDACTED]




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3.2. Component 1 - Improve the Enabling Environment for Rapid Co-

Investment in Clean Energy

Task 1.1 - Increase Capacity for Low Emissions Energy Sector Planning and

Implementation

Table 3.3 - Component 1: Major Programmatic Areas of Technical Assistance during Year 6

below summarizes the planned ICED II activities under Component 1. The timeline and types of

outputs are provided in more detail under each individual work stream.

Table 3.3 - Component 1: Major Programmatic Areas of Technical Assistance during Year 6

Program Institutiona

l Partner

Output W.S. Associated Results

RAN- RAD/ GRK

Bappenas Environ-ment

• Outreach to mainstream RAN/RAD-GRK to local governments.

• Finalization of RAD GRK revision and MER RAD GRK of 34 provinces.

1.1.1 • GHG emissions reduction from program implementation

• Investment mobilized (in USD) for climate change

• People receiving training in global climate change

• Laws, policies, strategies, plans, or regulations addressing climate change mitigation officially proposed, adopted, or implemented

RAD-GRK Provincial Bappeda

• Technical assistance (TA) on revision of RAD-GRK in priority provinces.



• Institutions with improved capacity to address climate change issues


RUEN MEMR Planning, Bappenas Energy

• Support RUEN implementation through TA for RUED-P development process

1.1.3 • Laws, policies, strategies, plans, or regulations addressing climate change mitigation officially proposed, adopted, or implemented


RUED (including

MEMR Planning, Bappenas

• Consultative meetings with Bappenas, MEMR, and MoHA on data alignment and

1.1.2 1.1.3 1.2.5

• Laws, policies, strategies, plans, or regulations addressing climate change




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l Partner


access to electricity)

Energy, Provincial Bappeda, Provincial Distamben

guidance for energy planning at the subnational level

• RUED training for provinces in national events

• RUED technical assistance for provinces and alignment with other provincial energy planning process and documents (RAD-GRK, RUKD, RAD SDG #7)

• Rural electrification Planning and Support System: database development and updating, geospatial mapping, guidelines, detailed plan for selected sites

• Support RUED-P development in priority provinces

2.2.4 mitigation officially proposed, adopted, or implemented


• Beneficiaries with improved energy services

Sustainable Finance

OJK, Bappenas, Ministry of Finance, MEMR, DGNREEC

• Facilitate coordination Bappenas, OJK and MoF in mainstreaming sustainable finance for SDG Financing Provide input in discussions with stakeholders on MEMR Energy Resilience Fund

• Facilitate development of new financing mechanism for clean energy

• Capacity building on Environmental/Social Risk Assessment

• Support the establishment of the Bali Center for Sustainable Finance

• Baseline study on green lending balances as of 2016

• Facilitate OJK to institutionalizing training and research material within targeted institutions

• Explore BCSF to adopt and continue ICED II work in clean energy financing

1.2.1 1.2.4



Renewable Energy Regulations

MEMR • Institutional framework for clean energy adoption and innovation

• Support the implementation the regulations for solar PV

• Business model for micro-

1.2.1 1.2.3





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l Partner


utilities in PLN and non-PLN service areas

• Harmonize energy plans and provide input to PLN RUPTL

• Inputs to draft renewable energy PPAs

• Clean energy generation capacity installed or rehabilitated

Table 3.4 and 3.5 summarize the planned ICED II activities under Component 1. The timeline and

types of outputs are provided in more detail under each individual work stream.

Table 3.4 - Component 1:

Major Programmatic Areas of Technical Assistance During Year 6 – National Level

Activity Bappenas MEMR PLN OJK

1 Energy Planning

a. RAD GRK/Review RAD GRK ✓

b. RUED

✓

c. SDGs or PRK (LCD) or RPJMN ✓ ✓

d. ESI & ESRI ✓

e. Facilitate engagement of national and sub-national stakeholders in energy planning process

✓ ✓ ✓

2 Rural Electrification Planning

a. Processing relevant data, map, analysis ✓ ✓ ✓

b. Capacity building on electricity access planning ✓ ✓

3 Implementation of Energy Plan/Strategy/Program

a. RE/EE regulations ✓ ✓ ✓ b. Electrification Programs ✓

✓

4 Sustainable Finance

a. New financing sources and products ✓ ✓

b. Piloting hybrid system for rural electrification ✓ ✓ ✓ ✓

c. Support PLN on implementation of RE IPP regulations ✓ ✓

d. Support OJK’s Sustainable Finance Program ✓ ✓ ✓

Note:

• Check mark in black (✓) indicates: Continue existing activities, with possible expansion on topic or

depth

• Check mark in red (✓) indicates: New program, partner or subject to be explored and agreed with

potential partners

Table 3.5 - Component 1:

Major Programmatic Areas of Technical Assistance during Year 6 – Sub-National Level Activity Aceh North

Sumatra

South

Sulawesi

Other

Provinces*

1. Energy Planning

a RAD GRK/Review RAD GRK ✓ ✓ ✓ b RUED ✓ ✓ ✓




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c SDGs or PRK (LCD) or RPJMD ✓ ✓ ✓ d RUKD ✓ ✓ ✓ e Facilitate engagement of national and sub-

national stakeholders in energy planning process

✓ ✓ ✓

2. Rural Electrification Planning

a Update data ✓ ✓ ✓ b Update geospatial map ✓ ✓ ✓ c Rural Electrification map ✓ ✓ ✓

3. Implementation of Energy Plan/Strategy/Program

a RE Development ✓ ✓ ✓ b Rural electrification ✓ ✓ ✓ c Energy Efficiency

✓

4. Sustainable Finance

a New financing sources and products ✓ ✓

b Piloting hybrid system for rural electrification

✓ ✓ ✓

c Support PLN on implementation of RE IPP regulations

✓ ✓

d Support OJK’s Sustainable Finance Program ✓

Note: * Related to Bappenas ICCTF

(✓): has been discussed and approved with provincial government.

(✓): has been discussed and needs follow up with provincial government.

(✓): work plans to be proposed to provincial government.

Tables 3.6 – 3.8 provide an overview of each programmatic activity, which may involve national institutions, sub-national institutions, or both. Each of this programmatic activity include follow ups of initiatives already taking place in Year 5 and in some instances, will be expanded with new activities as deemed necessary.

Table 3.6 - Description of Activity 1: Provincial Energy Plans

No Opportunity Abstract Activities Timeline Main Partner

1 Key Messages:

Align energy-related

provincial planning

documents

At National level:

assess linkages of

RUED-P with RUEN,

RUKD, PPRK

At sub-national level:

Align RAD GRK –

Energy Sector, RUED,

Support provincial

government to

improve their planning

process.

Initiative to align

various provincial

planning processes,

aiming to incorporate

them into RPJMD

which follow LCD

principles

Result Contribution:

• Update and

develop

provincial

energy dataset.

• Model analysis

and data

alignment

• Review and

analysis of

various energy-

related

Provincial

Y6: Q1- 4 National:

• MEMR Planning Bureau

• Bappenas Focus provinces:

• Bappeda

• MEMR Office




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RUKD, all of which

should be reflected in

RPJMD and the

budget plan.

MW, number of

people to get

electricity, GHG

emission reduction,

new regulations/

guidelines

Challenges:

Coordination of

various stakeholders

both at national and

sub-national levels.

Planning

process

• Development

of Guidelines

for alignment

• Working

session.




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Table 3.7 - Description of Activity 2: Rural Electrification


2 Key Messages:

Updated rural

electrification data,

geospatial map, and

rural electrification

map.

Electrification ratio

target 100% in 2020

can only be achieved if

the locations which

have low electricity

access can be

determined.

Supporting

provincial

government and

PLN Region to

improve their

electrification

planning. It will

assist on

determining

locations which

have low

electricity access.

Result

Contribution:

MW, number of

people to get

electricity, GHG

emission

reduction,

number of people

trained, new

regulations/guidel

ines

Challenges:

- Data

inconsistencies

- Institutions

work in silo

• Update

electrification

data (Podes

2018, other data

sources)

• Update 20 kV

data and

geospatial map

• Develop basic

and advanced

study on

electrification

data

• Develop basic

and advanced

study on

geospatial

mapping

• Develop sizing for

hybrid design

approach

• Revise the

“Guidelines for

Geospatial-based

Electrification

Planning” based

on updated data

• Training &

Workshop

Y6: Q1-4 National:

- MEMR DGE

- PLN IT

Sub-National:

- ESDM Office

- PLN Region




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Table 3.8 - Description of Activity 3: Implementation Plans No. Opportunity Abstract Activities Timeline Main Partner:

3 Key messages: Detailed plan in focus provinces:

• RE development

• Rural Electrification

• Energy Efficiency

Clear and measurable electrification plans in the planning documents. The use of renewable energy and application of energy efficiency are considered.

Supporting ESDM Office and PLN Wilayah to improve their planning and sharpen the electrification plan for implementation. Various aspects to be included: renewable energy, energy efficiency, and geospatial approach. Result Contribution: MW, USD financing leverage, number of people to get electricity access and GHG emission reduction, expected lifetime energy savings from energy efficiency or energy conservation as a result of USG assistance. - Challenges: Data

inconsistencies

- Institutions work

in silo

• Study for electricity connection for underprivileged communities

• Develop detail electrification implementation plan from each energy plan (RUED, RUKD, RAD GRK-Energy sector, RAD SDGs- Energy sector by assist them.

• Working session

Y6: Q1-4 PLN Regional & ESDM Office in Focus Provinces

Detailed description of activities in each Work Stream are listed in the following tables. Many activities in Year 6 are continuation of those implemented in Year 5. Work Stream 1.1.1: Support BAPPENAS in RAN/RAD GRK implementation

No Key Activities Output

1 Support Bappenas SekRAN/RAD GRK on their activities to facilitate RAD GRK Revision and MER RAD GRK

MER RAD GRK 2019

2 Support GOI policy shifting from GRK → LCD

Inputs for policy development Series of activities on capacity building for sub-national stakeholders




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3 SDG Implementation Assessment on multi-tier framework for electricity access (related to WS 1.2.2)

4 Support RPJMN 2020-2024 on energy

Study on cascaded scenarios of development path (related with WS 1.2.5)

Timeline

Indicative schedule FY 2019

Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Work Stream 1.1.2: Support sub-national governments in RAD GRK and RUED/RUKD

WS 1.1.2.a Sub-National GHG Mitigation Planning and Implementation


1 Alignment of energy sector RAD-GRK Revision with other provincial plans in the energy sector (two-way communication; linked with WS 1.1.2)

Support the series of activities on capacity building for sub-national stakeholders (related with WS 1.2.5)

2 Support GOI policy shifting from GRK → LCD

Support the series of activities on capacity building for sub-national stakeholders (related with WS 1.2.5.)

3 SDG Implementation Introduce the concept of multi-tier electricity access and the linkage of energy access with welfare improvement (linked with WS 1.1.3)




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Timeline WS 1.1.2.a


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

WS 1.1.2.b. Sub-National Energy Sector Planning and Implementation


RUED-P Development

1 Assist the RUED-P teams in focus provinces on the preparation of RUED-P and alignment with other energy-related planning documents.

a. Multi-region LEAP Model b. RUED-P database and geospatial map of village

electrification c. Academic Paper of RUED-P d. Draft Annex for RUED-P Regional Regulation e. Inputs and recommendations for alignment of provincial

energy planning documents f. Tools for MER provincial energy plans

2 Provincial Workshops (2 event x 5 provinces)

a. Events b. Participation of experts in training and assistance on data

processing for Provincial LEAP Model

Timeline WS 1.1.2.b


Q1 Q2 Q3 Q4

Activity 1

Activity 2

WS 1.1.2.c. Sub-National Electricity Planning and Implementation


1 Geospatial-based electricity access planning in selected areas or priority of local government

a. Detailed studies of selected areas b. Workshops or FGD with local stakeholders c. Materials on processing electricity data to be considered

as reference by Provincial Government (Dinas ESDM, Bappeda) or MEMR (DJK, EBTKE, PPSDM)

2 Updating of 20 kV geospatial network maps in North Sumatra and Aceh Provinces (related to the activities on Distribution Networks);

• Updated geospatial map of 20 kV network in North Sumatra Province

• Updated geospatial map of 20 kV network in Aceh Province

• New geospatial map of 20 kV network in South Sulawesi Province

3 Capacity building for on geospatial-based electrification planning

• Trainings on geospatial –based advanced Electrification Planning for PLN South Sulawesi Region (Sulselrabar) and Dinas ESDM South Sulawesi




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Timeline WS 1.1.2.c.


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

The level of engagement of ICED II with the government of focus provinces differ based on their

acceptance, development priority and the progress of policy processes.

Work Stream 1.1.3: Assist Bappenas, MEMR and PLN in in electricity generation and demand

side management planning in developing RUEN, RUKN and RUPTL

WS 1.1.3.a National - Energy Planning and Implementation


1 Support to national institutions on the coordination of RUED-P process (related to WS 1.1.2.b)

• Share information on progress of RUED-P of focus provinces

2 Support to national institutions on MER RUEN/RUED-P

• Inputs on the development of MER RUEN/RUED concept

• Workshops, FGD

3 Support to MEMR on Renstra KESDM 2020-2024

• Concept, system and guidelines for integrating RUED 34 provinces

• Cascaded LEAP model and database for National & 34 Provinces

• Energy Security Index

• Energy Self Sufficiency Index

• Workshops, FGD

Timeline WS 1.1.3.a


Q1 Q2 Q3 Q4

Activity 1 (related to WS 1.1.2.b)

Activity 2

Activity 3

WS 1.1.3.b National – Electricity Planning and Implementation


3 Coordinate with MEMR DG EBTKE and/or PLN (link with WS 2.2.2) a. Dissemination of methodologies, templates

and guidelines on processing village electrification data




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b. Training on village electrification data processing and planning

c. Case studies

Timeline WS 1.1.3.b


Q1 Q2 Q3 Q4

Activity 3

Task 1.2 - Policy and Regulatory Reform Support for Clean Energy Project

Development

Work Stream 1.2.1: Support to new financing sources and products


1 Support to Bappenas in conducting coordination for Financing the 2030 Agenda for Sustainable Development

• MOU between Bappenas and OJK;

• Facilitated Bappenas & OJK for any international or regional forum in SDG

2 Support PT SMI SDG One with key features clean energy/ energy efficiency, rural electrification, subnational government financing

• Series of Studies or project assessment for subnational government financing

• Training and capacity building

3 Advisory to Bappenas & OJK, on potential blended finance structure between donors and domestic financial institutions

• Financing concept for rural electrification

• Financing concept for subnational government (link to SDG One)

• Support ICCTF Energy Task Force in researches

4 Development of green portfolio focus on subnational projects

• Report or publication renewable energy portfolio (example: Bappenas RePro series)




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Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Work Stream 1.2.2: Support new/improved regulatory framework for renewable energy power

regulations generating facilities


1 Improvements to MEMR Regulation 49 of 2018 on Rooftop Solar PV

• Presentation of results from ICED II analysis

• Analysis of Rooftop Solar PV in Indonesia report

• Participate in FGDs related to revisions to MEMR Regulation 49/2018

2 Improvements to MEMR Regulations 50 of 2017 on Renewable Energy IPPs

• Participate in FGDs on renewable energy IPP pricing and PPA terms for input in draft Presidential Regulation

3 Exploration of business model for rural electrification related to improvements to MEMR Regulation 38 of 2016

• Report proposed business model(s)

• List example of rural electrification business models (literature review)

• Link work to support SDG-One subnational financing or ICCTF Energy Task Force

4 Introduce competitive procurement for renewable energy IPPs

• FGD to share lessons learned from other countries

• Pilot competitive procurement within existing regulations

• Propose changes to existing regulations to allow for innovative competitive procurements

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4




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Work Stream 1.2.3 - Support PLN on implementation of renewable energy IPP regulations


1 Java-Madura-Bali and Sulawesi Grid Code revisions. Including operation & planning code.

• Project Memorandums/Reports on progress of Grid Code

revisions;

• Workshop/Consultation Meeting facilitation for Grid

Management Committee;

• Input to draft MEMR regulations for Grid Code revisions.

2 Analysis of System Impact (transmission level) for variable renewable energy projects

• Analysis of South Sulawesi system “capacity quota”

for solar PV and wind

• Dispatching logic for transmission system operator in

South Sulawesi

• System Impact Analysis Methodology Guidelines

3 Improved PLN distribution system planning related to non-network resources

• Incorporate ICED II support to renewable energy IPP

procurement (e.g., capacity quota analysis,

interconnection studies, rooftop solar PV in

residential, commercial and industrial customers)

4 Input on planning and business model for rural electrification through engagement with PLN and MEMR DGK

• Report ICED II concept on hybrid business model for rural electrification

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Work Stream 1.2.4 - Support OJK’s Sustainable Finance Program


1 Solicit detail support to OJK related to sustainable finance

Signed approved TOR by OJK

2 Continuing ESRA training series with cost sharing with other donors

3 batches ESRA trainings in 2020

3 Revision of green lending survey into researches implementation of POJK 50/2017

One research memo

4 Completion Handbook for Financial Institutions

• Guidelines for Evaluating PPAs

• Second edition Handbook Solar PV




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5 Support Bali Centre for Sustainable Finance (BCSF)

• Research and policies memo focus on subnational subject

• Series of Focus Group Discussion;

6 Outreach and communication to non-financial institutions in collaboration with IFC

• 2 batches Sustainable Finance forum (media and universities)

7 Support financial institutions in implementing POJK 50/2017

• Development e-learning ESG module for individual bank;

• Training and workshop in ESG and financing clean energy for individual bank;

• Support data will be use by financial institutions in Sustainable Reporting

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5

Activity 6

Activity 7

Work Stream 1.2.5 – Assist subnational governments to implement and communicate energy

policies/regulations


1 Develop documentation on energy planning processes to implement national policies

• Report on the energy planning processes to implement national policies

• Event series: FGD and Workshops (during and after the study)

Timeline


Q1 Q2 Q3 Q4

Activity 1

3.3 Component 2 - Accelerate Mobilization of Private and Public Sector

Co-Investment in Clean Energy




77

Table 3.9 summarizes ICED II’s planned activities under Component 2. The timeline and type of

outputs are provided in more detail under each individual work stream.

Table 3.9 - Programmatic Areas of Technical Assistance for Year 6 for Component 2

Program Institutional

Partner

Output Work

Stream

Associated Results

Renewable energy project development support

Developers, investors, renewable energy technology vendors, contractors, banks and financial institutions, PLN

• Hydropower project memorandums.

• Biomass, Biogas, Waste-to-Energy power project memorandums.

• Variable Renewable Energy (Solar PV and Wind) power project memorandums.

• Hybrid power project memorandums.

• Workshop/Training and Training modules for Lenders/Investors on Renewable Energy Project Due Diligence & Risk Analysis.

• Renewable Energy Project Due Diligence & Risk Management guideline.

2.1.2

• GHG emissions reduction from program implementation


• Clean energy generation capacity that has achieved financial closure


Grid Integration: Planning, Procurement of RE Projects, Contracting, Operations

PLN Planning, PLN EBT Division, PLN Wilayah/Regions

• Project Memorandums on Review of Renewable Energy Power Plant Feasibility Study for PLN.

• Feasibility Study Review Guidelines for Wind and Solar PV Power Plant projects.

• Capital Expenditure (CAPEX) and Operation Expenditure (OPEX) references for Biomass, Biogas, Waste-to-Energy (Municipal Solid Waste), Solar Photovoltaic, and Wind Power Plant projects.

• Financial Model/Electricity Selling Price Analysis/Levelized Cost of Energy (LCOE) package tools and training modules for Biomass, Biogas, and Waste-to-Energy, Solar PV and Wind Power Plant projects.

• Standard Request for Proposal (RFP) Bidding Document for Biomass, Biogas, Waste-to-

2.1.3 • People receiving training in global climate change



• Projected greenhouse gas emissions reduced or avoided through 2030 from adopted laws, policies, regulations or technologies related to clean energy




78


Partner

Output Work

Stream

Associated Results

Energy, Solar PV and Wind Power plant projects.

• Project Memorandums of Review of draft of PLN’s PPA standard and existing PLN’s PPA for Bioenergy, Solar PV and Wind Power Plants.

• Report of Rooftop Solar PV Power Economic Impact Study.

• Guideline package and training modules for grid impact study.

• PLN's Distribution System Planning Guidelines.

• Automatic Dispatch System (ADS) and Grid Monitoring System for PLN's 20 kV Grid in East Sumba.

Grid Transmission and Distribution

PLN and MEMR • New MEMR Regulation on Grid Code of Java-Bali, Sumatera, Sulawesi, Kalimantan and East Indonesia.

• Project Memorandum on Distribution Code revision.

• New MEMR Regulation on Distribution Code.





GHG emission reduction from Thermal Power Plants

MEMR • Performance Benchmark of Thermal Power Plants.

• Performance Benchmark tool and guideline fo4r Thermal Power Plants.

• Guideline of Energy Efficiency/Thermal Performance Improvement of Thermal Power Plants.

• Study of Energy Saving potential and road map of Thermal Performance



• Clean energy generation capacity that has achieved




79


Partner

Output Work

Stream

Associated Results

Improvement of Thermal Power Plants.

• Guideline of GHG Emission reduction calculation of Thermal Power Plants.

• Study of Cap of GHG Emission reduction for Thermal Power Plants.

financial closure


Alternatives of Electric Vehicle Business Scheme

MEMR • Study of different alternatives of Electric Vehicle Business Scheme based on Presidential Regulation Number 55 Year 2019.

• Report of Roadmap of the development Electric Vehicle Business Scheme for road transportation in different scenario developments.

• Workshop facilitations on Electric Business Schemes.

• Guideline package and training of the development Electric Vehicle Business Scheme





Work Stream 2.1.1: Database of clean energy projects

Key Activities Output

1. Update ICED II Clean Energy Project Database

Revised database and user manual

2. Updated APPLE GATRIK in MEMR DJK that utilizes ICED II's Clean Energy Project Database & Map

• Consultation with MEMR on the development of Renewable Energy (RE) Project Database and Map for MEMR DJK. Reach agreement on the required feature, format data, data verification and updating method for the RE Project Database.

• Collaborate/train MEMR in the development RE Project Database & Map to support MEMR DGK.

• Transfer selected ICED II’s Clean Energy Project pipeline information and assist MEMR to MEMR in the updating the APPLE GATRIK database

Timeline




80


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Work Stream 2.1.2: Project development advisory services (BAU)


1

.

Advisory Service and Technical Assistance to Hydro Power Project Development

• Project Memorandums, and Survey Visit/Analysis

reports.

2 Advisory Service and Technical Assistance to Biomass Power Project Development

3

.

Advisory Service and Technical Assistance to Biogas Power Project Development.

4 Advisory Service and Technical Assistance to Waste-to-Energy Power Project Development.

5

.

Advisory Service and Technical Assistance to Solar PV Power Project Development.

6 Advisory Service and Technical Assistance to Wind Power Project Development.

7 Advisory Service and Technical Assistance to Hybrid Power Project Development.

8 Capacity building for Lenders/Investors on Clean Energy Project Due Diligence & Risk Analysis.

• In-house training workshop for lenders/investors.

• Renewable Energy Project Due Diligence & Risk

Management guideline.

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5

Activity 6

Activity 7

Activity 8




81

Work Stream 2.1.3: Assist PLN in renewable energy IPP standard operating procedures


1. Advisory Service and Technical Assistance on Review of Renewable Energy Power Plant Feasibility Study.

• Project Memorandums on Review of Renewable Energy

Power Plant Feasibility Study for PLN.

2 Development of Feasibility Study Review Guidelines for Wind and Solar PV Power Plant projects.

• Feasibility Study Review Guidelines for Wind Power Plant

projects.

• Feasibility Study Review Guidelines for Solar PV Power

Plant projects.

3 Development of Capital Expenditure (CAPEX) and Operation Expenditure (OPEX) references for Biomass, Biogas, Waste-to-Energy (Municipal Solid Waste), Solar Photovoltaic, and Wind Power Plant projects.

• Capital Expenditure (CAPEX) and Operation Expenditure

(OPEX) references for Biomass, Biogas, Waste-to-Energy

(Municipal Solid Waste), Solar Photovoltaic, and Wind

Power Plant projects.

4 Development of Financial Model/Electricity Selling Price Analysis/Levelized Cost of Energy (LCOE) package tools, training modules and training facilitation for Biomass, Biogas, Waste-to-Energy, Solar PV and Wind Power plant projects.

• Financial Model/Electricity Selling Price

Analysis/Levelized Cost of Energy (LCOE) package tools

and training modules for Biomass, Biogas, and Waste-to-

Energy, Solar PV and Wind Power Plant projects.

• In house training on Financial Model/Electricity Selling

Price Analysis/Levelized Cost of Energy (LCOE) package

tools and training modules for Biomass, Biogas, and

Waste-to-Energy, Solar PV and Wind Power Plant

projects.

5 Advisory Service and Technical Assistance on Review of Renewable Energy Power Plant Procurement.

• Project Memorandums on Review of Renewable Energy

Power Plant Procurement.

6 Development of Standard Request for Proposal (RFP) Bidding Document for Biomass, Biogas, Waste-to-Energy, Solar PV and Wind Power plant projects.

• Standard Request for Proposal (RFP) Bidding Document

for Biomass, Biogas, Waste-to-Energy, Solar PV and Wind

Power plant projects.

7 Review of draft of PLN’s PPA standard and existing PLN’s PPA for Bioenergy, Solar PV and Wind Power Plants.

• Project Memorandums of Review of draft of PLN’s PPA

standard and existing PLN’s PPA for Bioenergy, Solar PV

and Wind Power Plants.

8 Revision RE Power Plant procurement procedure, and Interconnection Agreement Template Development.

• Project Memorandum on revision RE procurement

procedure, and Interconnection Agreement Template.

9 Development of Rooftop Solar PV Power economic impact study.

• Report of Rooftop Solar PV Power economic impact

study.

10 Development of guideline package and training facilitation for grid impact study.

• Guideline package and training modules for grid impact

study.

• In house training on grid impact study development.

11 Development of Automatic Dispatch System (ADS) and Grid Monitoring

• Grid Monitoring system for PLN's 20 kV Grid in East

Sumba.




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System for PLN's 20 kV Grid in East Sumba.

• ADS for PLN's 20 kV Grid in East Sumba.

• Project Memorandums of ADS implementation and Grid

Monitoring system for PLN's 20 kV Grid in East Sumba.

12 Development of PLN's Distribution System Planning Guidelines and the training facilitation.

• PLN's Distribution System Planning Guidelines.

• In house training on PLN's Distribution System Planning

Guideline (by using PSS Sincal and Arc GIS).

Timeline

Indicative schedule FY 2019 FY 2020

Q1 Q2 Q3 Q4

Activity 1

Activity 2 Activity 3 Activity 4

Activity 5

Activity 6

Activity 7

Activity 8

Activity 9

Activity 10

Activity 11

Activity 12

Task 2.2 - Increased Local Capacity of Science, Technology, Innovation and

Human Resource for Clean Energy Growth

Work Stream 2.2.1: Conduct initial landscape assessments of GOI agencies, industry

associations, and academia to identify capacity building needs to promote S&T advancements in

energy planning, modeling, integration, etc.


1 Grid Code revision and socialization facilitation.

• New MEMR Regulation on Grid Code of Java-Bali,

Sumatra, Sulawesi, Kalimantan and East Indonesia

• Socialization workshop on New MEMR Regulation on Grid

Code of Java-Bali, Sumatra, Sulawesi, Kalimantan and East

Indonesia.

2 Distribution Code revision and

socialization facilitation.

• Project Memorandum on Distribution Code revision.

• New MEMR Regulation on Distribution Code.

• Socialization workshop on New MEMR Regulation on

Distribution Code.




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3 Capacity Building for Planning

Implementation of National Energy

Policy on 23% Energy Mix for 2025.

• Workshop on Planning Implementation of National Energy

Policy on 23% Energy Mix for 2025.

4 Maintaining the APPLE GATRIK

webpage database platform and

adding GHG mitigation features in the

APPLE GATRIK platform.

• APPLE GATRIK webpage database platform and adding

GHG mitigation features in the APPLE GATRIK platform.

5 Provide technical assistances in the

revision of the MEMR Regulation No.

57/2017 on Application of Minimum

Energy Performance Standards (MEPS)

and Inclusion of Energy Saving Sign

Labels for Air Conditioning Devices.

• FGD/Seminar/Workshop on MEPS revision or Air

Conditioning Devices.

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3 Activity 4

Activity 5

Work Stream 2.2.2: Identify renewable energy technology innovations and promote widespread

utilization


1 Development of Mini Hydro Power Plant Hydraulic Transient Analysis tool packages, guideline, and training modules; and training facilitation for developers and consultants.

• Mini Hydro Power Plant Hydraulic Transient Analysis

tool packages and the guideline.

• Mini Hydro Power Plant Hydraulic Transient Analysis

training modules.

• Training workshop for developers and consultants.

2 Development of digital Topography Mapping by using UAV/Drone for Mini Hydro Power Project Development and dissemination the methodology.

• Report and presentation use of UAV for hydro digital

topography mapping

• Training workshop for developers and consultants

3 Piloting Automatic Generation Control System in isolated grid system to demonstrate improved power quality and increased integration of variable renewable energy, e.g., solar PV

• Report and presentation use of AGC and Power System

Analysis from Sumba pilot demonstration for replication

to other isolated grids

• Site visit(s) for PLN and MEMR DGE

• Include application of ADS in Distribution System

Planning Guidelines

• FGD for MEMR DGE, PLN and industry stakeholders




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Timeline


Q1 Q2 Q3 Q4

Activity 1 Activity 2

Activity 3




85

Work Stream 2.2.3: Inventory of clean energy training and education programs and support for

improvement


1 Supporting PLN Training Center

(Pusdiklat) in the development training

modules and training of trainers (ToT).

a. Training modules and Training of Trainer (ToT) facilitation on REGP Interconnection Guideline.

b. Training modules and ToT facilitation on basic Power Flow Analysis by using PSS Sincal.

c. Training modules and ToT facilitation on REGP Interconnection Study Review Guideline by using PSS Sincal.

d. Training modules and ToT facilitation on Biomass Power Plant Feasibility Study review guideline.

e. Training modules and ToT facilitation on Biogas Power Plant Feasibility Study review guideline.

f. Training modules and ToT facilitation on Waste-to-Energy Power Plant Feasibility Study review guideline.

g. Training modules and ToT facilitation on Solar PV Power Plant Feasibility Study review guideline.

h. Training modules and ToT facilitation on Wind Power Plant Feasibility Study review guideline.

i. Training modules and ToT facilitation on REGP Financial Model.

j. Training modules and ToT facilitation on Grid Impact Study guideline.

Training modules and ToT facilitation on Distribution planning guideline.

Timeline


Q1 Q2 Q3 Q4

Activity 1

Work Stream 2.2.4: Provide technical assistance to stakeholders in data verification/analysis by

developing their capabilities in GHG mitigation/clean energy data collection and modeling tools

in order to increase their capacity for evidence-based decision making


1 Digital Topography Mapping by using UAV/Drone for Mini Hydro Power Project Development. (related to WS 2.2.2)

• Verified digital topography maps for 3 to 4 Mini Hydro

Power projects;

• Study of Low-cost Method in Developing Topographic

Map for Mini Hydro Power Plant Projects using Drone

• 1 national/international research paper (minimum).

2 Development of Benchmarking Performance and Greenhouse Gas Emissions (GHG) in the Electricity Generation sector.

a. Report pf Performance and GHG emission Benchmark of Thermal Power Plants.

b. Performance Benchmark tool and guideline for Thermal Power Plants.




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c. Guideline of Performance Improvement of Thermal Power Plants.

d. Study of Energy Saving potential and road map of Thermal Performance Improvement of Thermal Power Plants.

e. Guideline of GHG Emission reduction calculation of Thermal Power Plants.

f. Report if Study of Cap of GHG Emission reduction for Thermal Power Plants.

g. Forum Group Discussion (FGD) and workshop on Benchmarking Performance and Greenhouse Gas Emissions (GHG) in the Electricity Generation sector.

3 Development of Study of different alternatives of Electric Vehicle Business Scheme for road transportation based on Presidential Regulation Number 55 Year 2019.

a. Report Study on analysis of various alternative Electric Vehicle Business Schemes for road transportation based on Presidential Regulation No. 55 of 2019.

b. A road map with various scenarios for developing Electric Vehicle Business Schemes for road transportation.

c. Package guidelines for Electric Vehicle Business Scheme for road transportation based on Presidential Regulation Number 55 Year 2019.

d. Trainings and workshops with key stakeholders on various alternative Electric Vehicle Business Schemes.

4 Workshops on electricity access planning (related with WS 1.1.2.c)

a. Comparison of electricity access from various sources b. Geospatial map with various overlays to obtain

additional information and analysis

Timeline


Q1 Q2 Q3 Q4

Activity 1 Activity 2 Activity 3 Activity 4

3.4. Component 3 - Outreach on USAID and USG Inter-Agency

Activities in Indonesia’s Energy Sector

Work Stream 3.1: Annual coordination forum for USG agencies working in climate change and

clean energy





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1. Facilitate high level event(s) to highlight the role of USAID Indonesia in renewable energy development.

• One main high level event (tactical event in the form of: publication launch, important day)

• One stakeholder-supported event (depends on request and resources availability)

2. Facilitate high level site visit to select project sites

Two site visits

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Work Stream 3.2: Develop system to document, track and monitor progress of previous

USAID/Indonesia Clean Energy Programs (including ICED)

No further activity needed under this work stream. The ICED II Clean Energy Project Database is

maintained under Work Stream 2.1.1.

Work Stream 3.3: Manage, improve and expand ICED II clean energy website and other

communications activities


1 Develop and distribute ICED II E-Newsletter (Development includes story/article curation and actual writing)

Quarterly newsletter

2 Develop long form stories for USAID publications

• Two stories on self-reliance

• Two stories on impact

• Two stories from the field

• Five profile story on pioneers in renewable energy development

3 Regular updates of ICED II website and social media channels.

• Website posts

4 Media gathering events (media workshop and visit).

• Three media workshops

• One media visit to renewable energy project sites that received ICED II technical assistance

• Media coverage on the renewable energy project sites

• Media coverage on activity in WS 3.1.

5 Videos related to USAID energy program

• Journey to Self-Reliance video

6 ICED II recognition • ICED II Close Out event

Timeline




88


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5

Activity 6

Work Stream 3.4: Coordinate with other USAID environment programs and develop joint

activities


1 Sponsor/facilitate ICED II Partner participation in USAID organized regional events

• Battery Storage workshop

• Competitive Procurement workshop

• Other workshops as identified

2 VRE Forecasting with USAID Scaling Up Renewable Energy activity

• Joint Work Plan and Schedule

• Coordinate with other related work with PLN

3 Coordinate Utility Executive/Regulatory Exchange Program with USEA and/or NARUC

• ICED II input to program design/participation in events (as needed)

4 Support GOI & PLN presentation and attended ACEF Manila 2020

• Representatives from GoI & PLN present or participate in the international event

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Work Stream 3.5: Coordinate with other USG, donors and international finance institutions and

develop joint activities


1 Coordination with World Bank on adoption and implementation of Distribution System Planning Guidelines

To be determined

Timeline




89


Q1 Q2 Q3 Q4

Activity 1

Work Stream 3.6: Support USAID-GOI Clean Energy Working Group (Tim Teknis)


1. Support to GOI through new CE Technical Team Liaison

• ICED II Activity Updates

2. Meeting and presentations with Tim Teknis on ICED II work plan and progress reports

• Minutes of meetings

• Presentation deck

3 Facilitate amendment of Technical Arrangement (TA)

• TA Amendment

4 Production of periodic BAST report for completed work

• Annual BAST report

5 Facilitate transfer of Sumba AGC pilot project to MEMR DGK

• Site visit

Timeline


Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5

Work Stream 3.7: Prepare annual renewable energy power update (additional activity)


1. Transfer of renewable energy database

• Agreement with PLN/MEMR

• Update information on all projects in PPA, Financial Close, Construction, Operating status

2. Compile data on renewable energy projects

• Information on project status and output (operating plants only)

3. Prepare report • Prepare report on the profile of the Indonesia renewable energy sector

Timeline





90

Q1 Q2 Q3 Q4

Activity 1

Activity 2

Activity 3




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4. ICED II PERFORMANCE INDICATORS AND

LIFE OF PROJECT TARGETS

The following Key Performance Indicators and Life-of-Project (LOP) Target Results provide a

summary of the expectations, progress to date, and the remaining results needed to achieve the

respective targets. Where ICED II has already achieved the LOP Target, the remaining LOP Target

is shown as “0”.

Table 4.1 - Indicator 1: GHG emissions reduced or avoided as supported by USG assistance

(GCC EG. 12-6)

Avoided or Off-set of emissions from energy produced from renewable energy and energy efficiency

projects during the reporting period (Thousands of tons of CO2e)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

4,500 37.25 3,551.76 438.34 595.35 884.25 726 0

Table 4.2 - Indicator 2: Amount of investment mobilized (in USD) for clean energy as supported

by USG assistance (GCC EG. 12-4)

Finance mobilized (or leveraged) for actions, activities, projects or programs that avoid or reduce

GHGs (Millions of USD)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

$800 $0 $397.9 $332.36 $806.4 $40.97 $84.5 0




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Table 4.3 - Indicator 3: Number of beneficiaries with improved energy services due to USG

assistance (GCC EG. 7.1-1)

Number of beneficiaries with improved energy services due to USG assistance (Thousands of

persons)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

5,000 18.85 205.5 501.42 663.6 465.6 804.63 3,145.04

Table 4.4 - Indicator 4: Number of institutions with improved capacity to address clean energy

issues as supported by USG assistance (GCC EG. 12-2)

Institutions with new or increased ability to use new or different approaches, processes, strategies,

or methodologies to mitigate climate change (Number of institutions)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

20 0 0 31 2 1 5 0

Table 4.5 - Indicator 5: Number of laws, policies, strategies, plans, or regulations addressing

clean energy formally proposed, adopted, or implemented as supported by USG assistance

(GCC EG. 12-3)

Laws, policies, strategies, plans, agreements or regulations include those measures developed to

address climate change (Number of laws, policies, strategies, plans, or regulations)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

20 0 4 21 1 15 5 0




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Table 4.6 - Indicator 6: Clean energy generation capacity installed or rehabilitated as a result of

USG assistance

Clean energy is defined as renewable energy (RE) technologies and end-use energy efficiency

technologies. This indicator reports power generation capacity, not annual electricity generation

(Megawatts of MW)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

4,500 37.25 3,551.76 438.34 595.35 107 65 100.96

Table 4.7 - Indicator 7: Percentage of females who report increased self-efficacy at the

conclusion of USG supported training/programming

Trainings or programs in any sector that have women’s empowerment as a goal (even if not the only

goal) should utilize this indicator (% of all females surveyed)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

70% n/a 50% 97% 96% 96% 70% 0

Table 4.8 - Indicator 8: Clean energy generation capacity supported by USG assistance that has

achieved financial closure (GCC EG. 12-5)

Clean energy is defined as renewable energy (RE) technologies and end-use energy efficiency

technologies. Financial closure is when the contract or agreement is signed by all relevant parties.

(Megawatt or MW)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

4,500 37.25 3,551.76 438.34 595.35 23 35 0




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Table 4.9 - Indicator 9: Projected greenhouse gas emissions reduced or avoided through 2030

from adopted laws, policies, regulations or technologies related to clean energy as supported by

USG assistance (GCC EG. 12-7)

Cumulative projected GHG emissions reduced or avoided from the time the policy, regulation or

technology took effect or action was taken, through 2030 (Thousands of tons of CO2e)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

27,000 1,340.8 28,562.13 4,147.1 3,205.1 2,444.6 2,660 0

Table 4.10 - Indicator 10: Number of people trained in clean energy as supported by USG

assistance (GCC EG. 12-1)

Training can include long-term academic degree programs, short- or long- term non-degree technical

courses in academic or in other settings, seminars, workshops, conferences, on-the-job learning

experiences, observational study tours, or distance learning (Persons completing training course)

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP Target

Remain

5,000 296 1,266 1,221 1,674 1,991 250 0

Table 4.11 - Indicator 11: Expected lifetime energy savings from energy efficiency or energy

conservation, as a result of USG assistance

Thermal and electricity savings generated from energy efficiency and energy conservation over

equipment life including “no cost/low cost” measures (Thousands of Giga-joules).

LOP

Target

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Actual

Year 5

Actual

Year 6

Target

LOP

Target

Remain

2,800 702 50.6 0 0 0 410 2,047.4

Note: ICED II discontinued its support for energy efficiency and energy conservation during Year 3 and 4.


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