EMR, USAID Mark 5 Years of Partnership in Sustainable Clean Energy
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 282.Pers/04/SJI/2020
Date: 22 September 2020
EMR, USAID Mark 5 Years of Partnership in Sustainable Clean Energy
The Ministry of Energy and Mineral Resources (EMR) and the United States Agency for International Development (USAID) on Tuesday (22/9) held an online event to mark the long partnership between the two parties in promoting clean energy in Indonesia through the USAID's Indonesia Clean Energy Development 2 (ICED 2), a five-year project worth US$17.2 million that ends in this September 2020. The project is part of bilateral cooperation between the Indonesian Government and the Government of the United States of America to advance Indonesia's energy sector.
"The ICED program has grown along with the development of the policies on new, renewable energy and energy conservation in Indonesia. ICED was introduced in 2011, after the formation of Directorate General of New, Renewable Energy and Energy Conservation within the Ministry of EMR. This Directorate General's responsibilities are, among others, meeting the target of 23% of renewable energy in the energy mix and reducing energy intensity by 1% by 2025. This policy, combined with Indonesia's commitment to reducing emissions by up to 29% by 2030, is a mandate for the government to switch to a cleaner energy system," said Secretary General of Ministry of EMR, Ego Syahrial, in his opening remarks.
Ego went to explain that in order to promote the use of clean energy, the Indonesian Government is drafting Presidential Regulation on Feed-in Tariffs to encourage investment in renewable energy. "We also prioritize the use of renewable energy sources to generate electricity for communities living in remote and outermost areas; we've set a target to replace all diesel power plants in the next three years," he said.
ICED 1, which was held between 2011 and 2015, supported the development of policies as well as technical and financial aspects in the implementation of renewable energy projects. Learning and growing from the experiences of ICED 1, ICED 2 involved more partners to further support the development of renewable energy, including Bappenas; Aceh, North Sumatra, and South Sulawesi Provincial Governments; OJK (Financial Services Authority), and State Utility Company PLN.
"I would like to sincerely thank all colleagues for their contribution, vision, and leadership in the development of renewable energy and energy conservation. I hope we can continue to create an affordable, reliable and sustainable investment climate for clean energy," said Ego.
Meanwhile, USAID Indonesia Mission Director Ryan Washburn said that the partnership between USAID and the Government of Indonesia has brought together the best American and Indonesian innovations and technologies to provide cost-effective, reliable, and sustainable renewable energy to Indonesia. "Together, we have increased access to electricity for more than 3 million Indonesian people, attracting investment worth US$ 1.62 million for Indonesia's clean energy self-reliance," he said.
Mr. Washburn continued to say that since 2015, ICED 2 has formed the synergy in national and regional energy planning, increased the integration of renewable energy into PLN's grids, moved financing in renewable energy, promoted energy-saving practices, supported the development of electric vehicles, and introduced smart grid solutions to help develop renewable energy in small islands.
For five years, ICED 2 has facilitated investment worth US$1.62 million in clean energy and technical assistance for the completion of clean energy power plants with a total capacity of 438.69 MW. These power plants have provided electricity access to 3.32 million people and reduced greenhouse gas emissions by 6.93 million tonnes of CO2 equivalent. ICED 2 has also contributed to the formation of 75 national and regional policies/plans/strategies on clean energy development, increased the capacity of 34 institutions for clean energy practices, and trained and equipped 8,898 people with skills and knowledge to support energy transformation in Indonesia. (IY)
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