Future of Solar Energy in Indonesia Shines Bright: GGGIi

Future of Solar Energy in Indonesia Shines Bright: GGGIi

As the Global Green Growth Institute's Green Growth Program rolls into its
second phase, the institute's specialists emphasized that investing in solar
power is still the most promising and practical green financing source in
Indonesia.

"It is not only promising, but also very practical. It has a lot of growth
potential because it's quite easy to implement. It's an easy, proven
technology so nothing is going to scare investors away," GGGI Principal
Green Finance Specialist Suki Atwal said at the 15th World Renewable Energy
Congress in Jakarta on Tuesday (20/09).

As solar cell technology becomes more practical and simple, Atwal believes
more solar power plants will be built in Indonesia in the near future,
especially considering the abundance of sunshine the country is exposed to,
and also its relatively low cost.

"Solar power will be one of the most dominating renewable forms of power
productions going forward, especially in this part of the world," Atwal
said.

In Indonesia, GGGI has piloted a number of projects to replace diesel with
solar energy, or a mix of the two, in remote areas of Kalimantan.

"In parts of Indonesia where there is no access to the power grid,
especially on the eastern islands, people are dependent on diesel, and
diesel is expensive," GGGI Country Representative in Indonesia Anna van
Paddenburg said. "This presents us with an opportunity to install solar cell
plants which will reduce their energy costs significantly."

The institute revealed they are already working closely with the government
to reach a target of 19 percent renewable energy by 2019.

GGGI signed a memorandum of understanding with state-owned enterprise Sarana
Mukti Infrastruktur (SMI) on Sept. 7 during the Asian Regional Policy
Dialogue in Jeju, South Korea, promising to provide SMI with technical
expertise in project evaluation, especially in renewable energy projects.

Other projects GGGI has developed in Indonesia include land restoration in
East Kalimantan.

"We are assessing the area to find out what commodity is best to grow there
for the farmers, and help build back the ecosystem to benefit the local
community and economy," van Paddenburg said.

Another focus area for GGGI is encouraging a more eco-friendly approach in
developing Special Economic Zones and assessing what kind of intervention is
best for each zone.

Although Indonesia has been one of GGGI's most sought after project
locations - especially with former president Susilo Bambang Yudhoyono taking
on the mantle as its president currently, Atwal said Indonesia's renewable
energy development has been hindered by serious challenges in mobilizing
private and institutional investors.

Among these challenges are the lack of a project pipeline, limited access to
affordable capital, a relatively high perception risk, small deals but high
transaction costs and limited financing.

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Ref:
http://jakartaglobe.beritasatu.com/business/future-solar-energy-indonesia-sh
ines-bright-gggi/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com