With more than 17,500 islands, Indonesia is the largest archipelagic nation with fast-growing electricity demand. The state-owned electricity company (PLN) is obligated to fulfil the electricity demand, where most of the electricity is generated from conventional fuel, at times from costly diesel fuel. With the nation’s electricity consumption projected to rise markedly in the pursuit of enhancing economic development and quality of life, Indonesia grapples with the challenge of meeting this need through environmentally sound and economically feasible solutions.

The Indonesian Government recognises the potential of renewable energy as a widely available domestically and environmentally friendly energy source. In the national energy plan, Indonesia has set the target to reach 23 per cent of renewable energy in the national energy mix by 2025, which is essential for Indonesia’s commitment to the 2015 Paris Agreement of reducing greenhouse gas emissions by 31.89 per cent conditionally by 2030. So far, Indonesia has limited experience in integrating renewable energy into the electricity grid. Successful examples need to be demonstrated and scaled up to showcase the possibility of overcoming the numerous technical, administrative, and regulatory challenges.

In this vital pursuit, the Directorate General of New Renewable Energy and Energy Conservation (DJ EBTKE), in strategic partnership with GIZ, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), spearheads the 1,000 Islands – Renewable Energy for Electrification Programme Phase II (REEP2). This initiative is dedicated to fortifying the institutional framework, refining regulatory mechanisms, and advancing the technical capabilities that are crucial for the expansion of renewable energy. With a keen focus on areas such as Sulawesi, East Nusa Tenggara (NTT), and Bangka Belitung, REEP2 not only concentrates on regions with considerable renewable energy potential but also on those that offer ample opportunities for replication and escalation, underpinning Indonesia’s transformative leap towards a sustainable energy paradigm.