Energy Policy Dialogue continues millions of dollars of energy cooperation
U.S. Department of Energy gives $1.2 million for U.S. – Indonesia Renewable Energy and Energy Efficiency Collaborative Projects. In support of the U.S. – Indonesia Energy Policy Dialogue, the U.S. DOE has committed to supporting collaborative projects in Indonesia that mutually benefit both countries and promote the increased use of clean energy technologies. DOE is committing $1.2 million for the implementation of these collaborative projects which will likely focus on renewable energy projects such as policy development assistance, clean energy finance, and grid integration, as well as energy efficiency projects such as training, technology deployment, appliance standards, commercial building standards and retrofitting. Actual project identification and selection is still under way.
U.S. Millennium Challenge Corporation has given over $300 million for Green Prosperity. The Green Prosperity Project is designed to support Indonesia’s commitment to a more sustainable, less carbon intensive future, particularly their goal of reducing greenhouse gas emissions by 26 percent by 2020 while maintaining a target of 7 percent annual economic growth. Increasing access to clean and reliable energy in rural areas and improving stewardship of natural assets are critical priorities to achieving this goal. The Green Prosperity Project will provide a combination of technical and financial assistance to support rural economic development in a manner that reduces reliance on fossil fuels, improves land management, protects natural capital, and complements efforts to reduce emissions from deforestation and environmental degradation. The core objective of the Project, consistent with MCC’s mission, is to increase productivity and household incomes by expanding renewable energy and improving management of land and natural resources, particularly in the agriculture and forestry sectors. The project will also support participatory land use planning and knowledge management, which are critical to empowering local Indonesians to manage their resources more efficiently and to building greater capacity to support low carbon development. Key implementing partners and project sponsors are expected to include local governments and institutions; private enterprises in the agriculture, forestry, water and energy sectors; financial institutions; small-holder farmers; and local and international civil society organizations.
USAID has a 3.5-year, $16 million Indonesia Clean Energy Development (ICED) Program. The ICED program supports Indonesia’s objectives to reduce greenhouse gas emissions from the energy sector and increase energy security through the development of clean energy. The program aims to reduce greenhouse gas emissions by four million tons by facilitating the installation of at least 20 clean energy power generation projects in Aceh, North Sumatra, and Riau to generate 120 MW of electricity and provide 1.2 million people with access to clean energy. It also aims to leverage $120 million public and private investment into clean energy projects. The program runs from March 2011 to September 2014.
U.S. Department of Treasury has given $650,000 for Technical Advisor to PLN’s New and Renewable Energy Division. Treasury’s Office of Technical Assistance will place a Resident Advisor in PLN's New and Renewable Energy Division. The Advisor will work directly in a peer-to-peer relationship with designated PLN counterparts to overcome previously identified barriers to renewable energy development, and to further develop PLN project finance capabilities in order to expand renewable energy sources such as geothermal, hydro, solar and biomass.
U.S. Department of Commerce created at fund of $650,000 for Technical Advisor to PLN’s New and Renewable Energy Division. Furthermore, the U.S. Department of Commerce has initiated a Commercial Dialogue with the R. I. Ministry of Trade, and clean energy.