LCORE-INDO Project

In cooperation with the Directorate General for New and Renewable Energy and Energy Conservation (DG NREEC), the project supports the development and implementation of new and best practice approaches to harness Indonesia’s renewable energy potential on a least-cost basis. The LCORE project is funded by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).

Objectives

LCORE’s objective is to enable DG NREEC to develop practical policies and to promote programs for effective support of renewable energy implementations to stimulate private sector investment and to contribute substantially to the national climate strategy including Nationally Appropriate Mitigation Actions (NAMAs).

Approach

The principal approach is to outline how RE and its related policies fit into an overall perspective of development as one spurred and initiated by agriculture and its related agricultural value–add industries in Indonesia. For that LCORE looks to also include innovation, market oriented research and technology, socio-economic and environmental impacts, as well as an awareness for policy makers and regulators on the benefits and shortcomings of different policy approaches of RE in Indonesia.

Area of Activity

Area of activity

Indicator

Pilot Projects / Studies (PPS)

Pilot projects / studies in all 3 main implementation areas demonstrate feasibility and business models, delivering realistic technical and economic RE potential including CO2 saving potential.

Information & Capacity Building (CB)

Capacity building measures inform key stakeholders about business models of pilot projects and case studies.

Action Plans & Best Practice Guidelines (AP)

Action plans and best practice guidelines are jointly developed with public and private stakeholders.

Monitoring and Evaluation (MRV)

Monitoring and evaluation at new and renewable energy, and energy conservation (NREEC) is established and it contributes in developing a monitoring, reporting, and verification (MRV) scheme.

Operational tools (OT)

Technical planning tools are developed for strategic policy implementation.

 

Application Area

In line with the project objectives, LCORE identified three main application areas as particularly promising for the optimized cost-benefit promotion of renewable energy in Indonesia. Geographically, LCORE is looking at regions in Indonesia where electricity and its production is more or most expensive, when compared to the Java/Bali and Sumatra regions. The cost advantage of RE is pronounced in these areas and economically viable installations can be established with relative ease and a clearly outlined and a relatively short-term return of investment shown.

Application area

Description

Waste to energy

Utilisation of biomass waste from the agricultural industry for power generation

Diesel substitution

Substitution of diesel fuel through grid-connected renewable energy power plants

Off-grid applications

New applications in off-grid renewable energy supply

Pillars of RE Deployment Strategy

The activities under this LCORE extension follow on the policy level a strategy that enhances self-learning and acts as an incubator. With the aid of model design (innovation and technology transfer), capacity building and operational tools, a potentially self-replicating learning cycle is initiated. It addresses RE policy-making capabilities and the institutional landscape; and while providing needed data for RE grid integration it creates awareness of market appropriate financing policies and mechanisms. Through result monitoring the cycle is closed and gives new input from lessons learnt to initiate the cycle again. These five key aspects represent the so-called “Pillars of RE-Deployment”. The project engages each of these pillars through a grid of 5 types of activity (applied knowledge tool). There can be, for example, pilot projects on policy making capabilities, as well as the institutional landscape. While being the same tool to generate knowledge, they would, albeit, refer to very different topics and, thus, generate a different impact on the policy level.