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Investment planning and capacity building facility in Indonesia

Sep 20, 2019

ECA, together with Castlerock Consulting, has been appointed by the Asian Development Bank to develop options for delivering Ministry of Finance subsidies to renewable energy development in Indonesia. Distinct from subsidies targeted at developers, these subsidies will be delivered through existing budget support mechanisms to the state utility, PLN, in order to defray the higher costs of renewables. Initially, the subsidies will target geothermal and hydropower projects. Indonesia has set ambitious targets for the expansion of renewable energy in the power sector, with the share of installed capacity due to reach 23% by 2025. Reaching this target implies a need to speed up current rates of capacity expansion by 8-10 times.