81265077-1 000 Islands — Renewable Energy for Electrification Programme phase 2 (REEP2)

Indonesia's demand for electricity is increasing steadily. The island nation has great renewable energy (RE) potential, especially in the decentralised area with solar photovoltaics (PV), bioenergy, hydropower, but also wind power. The National Energy Plan (RUEN) specifies the strategy for the energy sector, including a target share of RE in the electricity mix of 23 % for 2025. Currently the RE share stagnates at around 13 % in the power mix. Despite the high technical and economic potential, solar and wind energy as well as electricity generation from biomass only play a subordinate role. The political targets for the expansion of decentralised RE are only insufficiently integrated in the 10-year power expansion plan (RUPTL). The regulatory framework for decentralised RE is insufficient. Achieving the national climate protection goals (NDC) is inextricably linked to the decarbonisation of the electricity sector. At this stage, the capacities of state and private-sector actors as well as the regulatory and technical framework conditions for promoting decentralised RE are still too weak. To address these challenges, the REEP2 programme has been devised, building upon REEP phase 1, with the following objective: ‘The institutional, regulatory and technical conditions for achieving the policy target of 23 % of renewable energy in the energy mix in 2025 have been improved at national and regional level.’