Indonesian banks has better understanding on power projects using renewable energy

11 July 2017

Among the many successes of the first phase of USAID ICED was Environmental Analyst Training series, which resulted in more than 150 graduates from banks and financial institutions possessing good knowledge in renewable energy project proposals, especially mini hydro power plants.

At the end of the first phase of the project, USAID ICED received positive feedback from Indonesia’s Financial Service Authority (OJK). They requested similar training program to be continued in the second phase of USAID ICED II. Therefore, USAID ICED II developed new curriculum on solar photovoltaic (PV), biogas, and hybrid technologies (such as wind and solar PV technology).

The first batch of training under the collaborative umbrella with OJK focused on biogas. Held in Belitung island, more than 30 participants attended from banks and universities attended the training. They gained new knowledge on assessing project risks and had better understanding on biogas technology. They also had the opportunity to see Indonesia’s first biogas power plant, 1.2 MW Jangkang Belitung Biogas Power Plant that PT. Austindo Aufwind New Energy built in Belitung.

The first batch of training with focus on solar photovoltaic (PV) was held in Kupang, where the country’s biggest solar PV farm is located. With new regulation from the Ministry of Energy and Mineral Resources on tariff of electricity using solar PV as source of energy and presidential’s mandate to increase use of new and renewable energy sources, particularly on solar PV, the market in solar PV has been rising exponentially. Using similar curriculum technical and financial risks aspects of solar PV power plant, more than 30 participant from national and local banks took part in the training.

The latest training was held in Yogyakarta, focusing on hybrid technology between solar and wind that is quite a novelty in Indonesia’s renewable energy sector. With new variety of renewable energy technologies discussed during the new training series, USAID ICED II also published a set of training modules called “Training Package on Clean Energy Financing for Financial Institutions”.  The OJK acknowledged the modules as an important reference on sustainable finance in Indonesia. Seven universities in Indonesia with commitment in sustainable finance also received the modules.