Indonesia Clean Energy Development (ICED)

Under USAID 2011-2015 program, the Indonesian Clean Energy Development project (ICED) assisted the Government of Indonesia (GOI) in designing and implementing results-oriented Clean Energy (CE) development programs at the national and local levels. The objective of the project was to accelerate the use of small scale clean energy supply (<10 MW) power generation: Biomass, Hydro, and Biogas, energy efficiency in industries and biofuels. The project focused on three (3) provinces in Indonesia: North Sumatera, Naggroe Aceh Darussalam and Riau. By focusing on small-scale CE development, ICED aimed to reduce the cost of power generation and associated subsidies, expand electricity access to rural communities, and reduce greenhouse gas emissions. To achieve this, ICED worked with national and local governments, PLN, developers, banks and other stakeholders. 

Castlerock as the principal subcontractor in this project, undertook the following activities: 

  • Policy and regulatory framework: Review and address gaps in laws, national policies, national and regional government regulations, presidential/ ministerial decrees, and recommend practical regulatory mechanisms to implement effective CE programs.
  • Institutional framework/coordination: support the key GOI institutions with respect to the division of authorities and responsibilities under current laws; support key counterparts (DGNREEC, PLN, provincial and kabupaten governments) in implementing CE programs within their purviews. 
  • Clean Energy project implementation: identified, screened, and facilitated a variety of specific, high-quality projects that pave the way for replication and expansion. We provided project-specific legal, technical, financial and commercial advice to developers, banks, PLN and others to help advance specific project opportunities, which are often structure on a PPP basis. This also entailed development of CE database (based on a GIS) that captures the distribution or CE resources, administrative and land use boundaries, other geophysical features, and other infrastructure such as roads and the power network.
  • Awareness campaign:  raised awareness of the impact of artificially low electricity and fuel prices on demand growth, energy supply reliability, and investment in CE development; assisted in the analysis of current subsidies, and help build public support for on-going energy pricing reforms;
  • Capacity building: targeted training and technical assistance to local governments and other stakeholders such as PLN, banks and developers based on their programmatic authority;  provided objective advice on the costs and benefits of CE projects proposed within jurisdictions of local governments.