The core objective of the Renewable Energy for Electrification Programme (REEP) is to demonstrate the feasibility of achieving a 23 percent renewable share in the national energy mix by 2025 through the use of a bottom-up approach.
FIELD OF ACTIONS
Improvement of the regulatory framework for grid integration of renewable energy
To demonstrate in two local grids that 23 percent of renewable energy can be achieved by 2025
The experiences and lessons learned from these pilot grids are applied in other grids across the country
To get private sector involved in the planning, financing, implementing and operation of innovative renewable energy technology
BENEFIT FOR INDONESIA
Successful project implementation will enable local actors to adopt sustainable energy solutions that benefits the Indonesians
Development of renewables to electricity will drive local economy by generating more jobs in the fields besides also thriving local industry productivity.
More cost-efficient in many areas
Indonesia is an archipelagic country with inefficient infrastructure that often contributes to expensive logistics. Building renewable power plants is often cheaper as it cuts fuel transportation costs.
Cover fast-growing demand
Indonesia’s electricity demand grows by 8.6% annually therefore additional source for electricity generation is essential. Electricity generation from renewables will help cover this rising demand.
Reduction of distribution loss
Renewables, like solar power, can be built close to demand hence reducing transmission and distribution losses.
Provide 24-hour electricity access
Many remote areas in Indonesia, electricity is only available at night and generated from expensive diesel fuel. Introducing renewable energy can bring 24-hour electricity to people.
Increase utilization of renewable energy
Having a tropical climate, Indonesia is blessed with plenty of renewable sources such as solar and biomass. Non-depleted renewables can substitute fossil fuels and help cover future energy demand.
Green House Gas (GHG) emission reduction
Polluting fossil fuels such as coal, oil, and gas make up almost 90 percent of national energy mix. Increasing clean renewable energy share will contribute to an overall GHGs reduction.
Faster to build than fossil fuels
Renewable energy power plants are faster to build than fossils. For example, coal power plants can take more than 10 years to build while solar power plants can only take 12-18 months.
Reduce oil imports and save foreign currency
Indonesia has become a net oil importer after its demand exceeded production in 2004. Increasing domestically generated renewables will allow Indonesia to save its foreign currency and spend on productive expenditure.