2016.Q1.USAID Renewed a Memorandum of Understanding with PLN National Electricity Company for Clean Energy Collaboration

USAID Renewed a Memorandum of Understanding with PLN (National Electricity
Company) for Clean Energy Collaboration

[IUSAID ICED Credit]

As a primary company in
electricity transmission
and distribution throughout
Indonesia, PLN plays a
crucial role in clean energy
development.

John Hansen, Director of Environment Office
- USAID Indonesia and Ibu Nicke Widyawati,
PLN Director for Corporate Planning signed
the MoU, November 25th 2015

USAID’s Indonesia Clean
Energy Development II
Program (ICED II) is
helping Indonesia meet

its energy security and
climate change goals.

Jakarta, November 25th, 2015 – USAID Indonesia Environment
Director, John Hansen and Director of Planning of the Utility
State Owned Company PT PLN (Persero), Ibu Nicke Widyawati
signed a renewed Memorandum of Understanding (MoU) to
reinforce collaboration and continually improve the utilization of
new and renewable energy sources. It marks the continuation
of collaboration between ICED Project and PLN on the
development of Renewable Energy (RE) for electricity sector.
During the 1st phase of ICED project, which took place between
2012 to 2014, several activities has been deployed, among
others are the development of the 20 kV distributed generation
interconnection guideline, Geographic Information System for
RE planning in North Sumatera, Riau and Aceh provinces, and
facilitating the Hawaii Electric Company and PLN Utility
Partnership Exchange program. Now that the 2nd phase is
effective for the period of May 2015 to 2020, the deployment of
ICED project technical assistance under the renewed MoU is

aiming at several aspects: 1) accelerate the process of RE
project PPA; 2) Update, improve, develop technical standard
and practical guideline for renewable energy interconnection
and distribution; and 3) enhance institutional and human
resources capacity on RE technology and power generation
system.
The contribution of renewable energy has just reached 11% out
of the total number of plants in Indonesia. The National Energy
Planning issued in 2014 sets 23 % renewables in the energy
mix by 2025, and the GOI has recently committed to expand 35
GW additional power generation capacity from 2015 – 2019.
Within this target, PLN is tasked to optimize the development
and utilization of renewable energy sources. Working together
with PLN as the main institution for providing electricity access
throughout Indonesia will be very crucial to help increase
people’s access to clean energy. Moreover, by strengthening
the capacity of PLN’s human resources to fulfill their roles may
help ensuring the sustainability of future RE development in
Indonesia.