REEP’s implementation strategy employs bottom-up approach that is illustrated in the Graph 1 below. At the core of the project, REEP is using a holistic approach that takes into account technology, research and finance aspects in analyzing renewable energy challenges in Indonesia.
The project commences with the selection of two typical island grids with good replication potential. In these two grids, REEP will demonstrate 23 percent of renewable energy integration into the State Electricity Company (PLN) grids. REEP will install monitoring system to prove the technical and economic feasibility of the renewable energy grid integration in these two grids.
The monitoring system will also be used for training purpose and capacity building of the stakeholders such as EBTKE, Directorate General of Electricity (DJK), PLN and private sector.
After the completion of two pilot grids, REEP will continue with three other island grids in scaling up phase. Results from 5 island grids, including power system planning for the next ten years will be incorporated in PLN’s electricity procurement business plan (RUPTL). Furthermore, the results will also replicate to more than 600 grids across Indonesia.
REEP will also disseminate the results of pilot projects through trainings to PLN and private sectors. The training will include the know-how of creating bankable business proposal. This way, REEP hopes that renewable energy investment in Indonesia can increase by tenfold.