Indonesia, the largest country in Southeast Asia, is home to a diverse archipelago comprising over 17,000 islands, with a population exceeding 270 million. Among these islands, more than 2,000 are reliant on diesel for power or are entirely without electricity. This situation has resulted in energy poverty for more than 20-25 million people, highlighting a significant challenge in achieving energy access for all.

In 2022, PT PLN, the state electricity company, launched a “de-dieselization” plan/Diesel Replacement Programme (DRP) with the goal of converting about 5,200 diesel power plants to RE-based generators. PLN’s short-term plans involved establishing 0.2 GW of solar-powered generators in 94 different locations, requiring investments worth $700 million. Its primary objectives include reducing the nation’s dependence on traditional fuels, enhancing RE in the energy mix, and reducing electricity costs while improving reliability.

GEAPP Indonesia initiated REAL (Renewable Energy Access for the Last Mile) in close collaboration with the Indonesian government, PLN and alliance partners (IFC, UK FCDO) to enable communities to transition from diesel to renewable energy sources. GEAPP bridges the financial gap between project initiation and implementation, empowering developers to overcome obstacles and accelerating the transition to clean energy. By doing so, residents of remote islands will gain access to secure, reliable, and affordable energy, which is essential for powering their economic activities and sustaining their livelihoods. GEAPP is helping PLN in preparing for the next diesel replacement program (50 sites; a total of 85 MW diesel to be replaced with not only solar but also biomass and mini hydro), ensuring the next phase attracts more private sector investment, achieves lower cost and helps to build a demonstration in unelectrified regions.

By identifying potential sites for DRE pilot projects and Productive Use of Energy (PUE) assessment, GEAPP maps future opportunities for scale-up and replicability. GEAPP also looks into just transition potential, for instance, the impact of the transition on the diesel supply chain.

• Support in the feasibility study & auction design recommendation for the next diesel replacement tender held by PLN.
• Co-invest with alliance partners & private sector financiers in DRP phase 1 via the deployment of its risk capital to support project developers in executing the program.
• Demonstrate sustainable minigrid RE + BESS pilot project for unelectrified communities in Indonesia in a specific region.