Wind Hybrid Power Generation Marketing Development Initiatives WHyPGen Indonesia

What is the project about


Since 1980, the total primary energy demand in Indonesia has grown rapidly at an average of 4.6% per year, while GDP has grown at 4.8% per year. According to the Minister of Energy and Mineral Resources (MEMR), Indonesia still needs 35,000 MW of electricity before 2015. In anticipation of a future electricity crisis, the National Electricity Company (PLN) has encouraged the investment and promotion of renewable energy (RE) generation by private electricity companies (IPPs) so that they may immediately set up new RE power projects to supplement the current limited fossil power generation that is experiencing outages.

Based on the MEMR data released on 2010, the total potency of wind energy in Indonesia is about 9,29GW. However, up until now, only 2MW worth of installations were developed countrywide, and most of it still for research purposes. Previous studies conducted by the US National Renewable Energy Laboratory (NREL) show excellent potential for wind power generation in the country at areas near 9 o to 10 o S latitude.

The project strategy, through a cooperation with the Agency for the Assessment and Application Technology (BPPT) spanning 2012-2015, partly funded by the Global Environment Facility (GEF), is to facilitate the commercialization of Wind Hybrid Power Generation (WHyPGen) systems by demonstrating their advantages, providing attractive financing solutions and supporting the establishment of positive policies by showing all aspects on demonstration sites.

The goal of the proposed WHyPGen project is the reduction of the rate of growth of GHG emissions in the power sector of Indonesia. The project objective is the facilitation of the commercial development of on-grid WHyPGen systems for an environmentally sustainable electricity supply in Indonesia through government and private sector cooperation.

Achievements


Technology application and assessment

UNDP now demonstrates the potential of WHyPGen in Indonesia and fosters the enabling environment for pertinent stakeholders (e.g., MEMR, BPPT, local governments, local equipment manufacturers, engineering firms) to build awareness and unlock the untapped potential of the technology:

The WHyPGen project at a glance Table of potency and utilization of new renewable energies

  • 10 locations assessed for wind energy potency: NTT, Banten, Yogyakarta, Bali, Central Java, West Java and South Sulawesi. The results of the assessment will contribute to the creation of national wind maps.
  • Enhance knowledge of potential investors and local government about the potential of WHyPGen application by sharing maps of wind energy potentials in above-mentioned locations
  • Generate interest from potential private sector proponents in investing in WHyPGen systems by publishing results of techno-economic feasibility studies and also online

Technology demonstration

No matter how promising the potential of WHyPGen systems is in Indonesia, pioneering their implementation and showcasing their benefits are the first steps towards massive adoption.

UNDP will team up with the private sector to build demonstration site and communicate on the operation of WHyPGen projects:

  • Five existing WHyPGen facilities were assessed to document lessons learned on technology application for the national wind hybrid generation community
  • Based on initial wind energy potency assessment, WHyPGen pilots will be implemented and serve as basis for larger replication
  • Sound demonstration of the technology is expected to contribute to raising the share of wind energy in the national energy mix

Financing of WHyPGen initiatives

Presently, the commercial lending/financing institutions have very limited support for technology development and application initiatives especially for what they perceive as unproven and new technologies. UNDP intends to provide technical assistance in facilitating the design, establishment and implementation of appropriate financing mechanisms:

  • Increase investments from the private sector on wind power generation (including WHyPGen) projects by promoting the technology in financing institutions and the knowledge required to assess project proposals
  • The project expects to stimulate local banks/financing institutions to create loan-based dedicated financing schemes for WHyPGen projects

Policy and institutional support

UNDP will facilitate the promulgation of and compliance to policies and regulations that encourage adoption of WHyPGen technology in Indonesia:

  • Thorough policy study on wind hybrid energy systems delivered and shared with MEMR as the policy maker for energy sector in the country, to promote the feed-in tariff (pricing) policy for wind energy
  • Ideal policy framework supportive of WHyPGen projects proposed to MEMR yet to be endorsed. The framework consisting of three ministerial regulations takes into account good governance aspects inclusive of central and local government, the private sector and local communities

Promotion of WHyPGen initiatives

With the appropriate policy and financial framework in place, a local WHyPGen market can develop. UNDP will support the design and implementation of an active promotional programme for WHyPGen that will bring about enhanced awareness of the public and other stakeholders on the benefit of its applications:

  • Two national workshops with key WHyPGen stakeholders, including about 45 national media, were held to enhance nationwide awareness of the benefits of WHyPGen and that way, contribute to wider dissemination of information about wind energy on TV, newspaper, radio, magazine
  • Engineering schools curricula on WHyPGen are assessed and reviewed by the project to better prepare future engineers for wind energy technology
  • Poverty reduction assessment of off-grid WHyPGen installations in remote areas for local communities was initiated. Gender-sensitive strategies in relation with technology development, will be developed

Market development and industry support

For achieving widespread application of Wind Energy Power Generation (including WHyPGen) in Indonesia this technology has to be supported by local industries. UNDP will support the human and technical capacity that can accompany the deployment of such technology:

  • 15 potential local manufacturers identified and assessed to receive capacity building programmes and trainings in installation, operation and maintenance of of wind power generation facilities, these industry champions will ensure the availability of reasonably priced local service and quality components
  • Survey on electricity demand and supply was conducted in 10 focal areas served by wind power generation to eventually develop a better understanding of environmentally sustainable power supply

Contact



UNDP Indonesia Country Office
Menara Thamrin 8-9th Floor
Jl. MH Thamrin Kav. 3 
Jakarta 10250
Phone: +62-21-3141308
Fax: +62-21-39838941

Overview
Status
Active
Project start date
2012
Estimated end date
2015
Partners on ground
UNDP, BPPT,MEMR and PLN.
Focus Area
wind Hybrid Power
Geographic focus
10 location assessed for wind energy potency
Head of Unit
Priyo Budhi Sayoko
Project Board
UNDP, MEMR, BPPT,GEF
Download this Document