Promotion of Least Cost Renewables in Indonesia (LCORE-INDO)

The project supported Indonesia in planning and implementing renewable energy (RE) programmes that optimised the cost/benefit ratio of electricity generation and CO2 avoidance, thereby helping to achieve the country’s climate change mitigation and development goals. In cooperation with the private sector, the project partners developed and tested cost-effective methods of replacing fossil fuels. Using these, the project partners drew up viable policies, guidelines and promotional programmes in order to tap the economic potential of renewable energies. Within the extension of LCORE, the project advised and trained partners on instruments for project financing, net integration and expansion strategies for grid connected RE, particularly addressing Indonesia’s situation as the world's largest archipelago.

Project data

Countries: Indonesia
IKI funding: 5,545,000.00 €
Duration: 03/2012 till 12/2018
Status: completed
Implementing organisation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner: Ministry of Energy and Mineral Resources (MEMR) - Indonesia
Online: http://www.lcore-indonesia.or.id/

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State of implementation/results

Project completed.
Feed-in tariffs for electricity generated using biomass/biogas and a net-metering regulation for the self-consumption of photovoltaic electricity were approved, on which the project had advised the Indonesian partners. --The project assisted the Indonesian government in the development of a series of guidelines, including detailed explanations of process steps, legal regulations and tariff structures. The target groups were private sector project developers in the area of bioenergy power plants.
Pilot projects that demonstrated the technical/economic feasibility of renewable energy systems were implemented, e.g. a PV-hybrid system with Misool Eco Resort, a rooftop solar system with energy provider Jawa Power, a solar-powered ice-machine for the fishing sector, a PV powered off-grid cold storage unit, and energy generation using palm oil mill effluent . The potential greenhouse gas savings were estimated at approx. 180,000 tonnes of CO2 eq per year.
40 projects with an additional energy-saving potential of approx. 800,000 tonnes of CO2 eq per year were identified and analysed.
Study trips to Germany with participants from public institutions, including the Indonesian project partner, to the solar industry trade fair Intersolar in Munich and the Renewables Academy (RENAC) Green Summer School in Berlin took place. Participants toured around close to a dozen renewable energy power plants in Germany and participated in a workshop on financing and in a policy round table on bioenergy use in Indonesia. --The project developed a monitoring and evaluation system to assess the climate impact of bioenergy.
Furthermore, a Nationally Appropriate Mitigation Actions (NAMA) proposal for ER project financing in the bioenergy sector was developed and a roadmap towards a sustainable financial system has been supported together with UNEP.
The political partner was advised on how to carry out Strengths-Weaknesses-Opportunities-Threats-analysis (SWOT) of publicly-funded and commissioned biogas/biomass systems, which experience massive problems during operation and maintenance or failed to produce power after completion.
Biogas performance benchmarking was carried out to analyse the technical performance of biogas systems and formulate best practice guidelines to be applied by the operators. The results of the benchmarking and best practice analyses were discussed with stakeholders from the public and private sphere in a workshop to define potential future political instruments.
The project developed a study on the cornerstones of an implementation strategy for renewables. The results as well as stakeholders' reactions pointed to important new fields of action. Financing, training of personnel, innovative solutions in the cooperation between the public and private sector as well as adjusted political instruments were identified as the most pressing needs in supporting renewble energy.
The project supported the development of a biomass database and regularly met with relevant partners about it.

Latest Update:
03/2025