The projects will be awarded under the second phase of the GOI-GGGI Green Growth Program (GGP) for 2016-2019, in cooperation with the country’s Ministry of Planning (Bappenas), said GGGI, which is advising the Indonesian government on its renewables targets. It is offering to support the development of at least 1 MW of solar capacity in East Nusa Tenggara province, or in Central and East Kalimantan on the island of Borneo. Proposed grid-connected projects should be situated at least 20 km from utility PT PLN’s grid network, although the GGP will also accept proposals for off-grid PV projects.
“GGP shall consider engaging with the projects submitted based on the risks associated and the impact these projects/programs seek to make at the national or sub-national level,” the Seoul-based GGGI said.
The GGGI — a treaty-based inter-governmental organization that promotes sustainable economic growth in developing nations — is open to aggregating proposed projects to put together a scaled investment of nationwide significance, according to an online statement. It will prioritize proposals that are large in terms of scale, as well as proposals that aim to resolve critical regional issues such as rural access to energy. Developers of approved projects will be given access to undisclosed debt and equity providers that have partnered with the GGGI.
The GGGI, which was founded in 2012 at the Rio+20 United Nations Conference on Sustainable Development, is trying to lower project-related risks in Indonesia, while helping to free up flows of capital into renewables. It will accept EOIs until the end of November.
Indonesia’s cumulative installed PV capacity remains negligible, at roughly 80 MW by the end of 2016, according to the International Renewable Energy Agency (IRENA). However, the country’s fledgling solar sector is developing rapidly, with roughly 70 MW installed last year alone.