MARITJE HUTAPEA

Director for Energy Conservation

Directorate General of New Renewable Energy and Energy Conservation

Presented at: NAMA Market Place Session

Carbon Forum Asia 2015

Macao, March 27th 2015

SMART STREET LIGHTING INITIATIVE (SSLI) NAMA

Ministry of Energy and Mineral Resources

Energy and Mineral Resources for People’s Welfare

• 88% of energy generation in 2013 came from fossil resources, dominated by coal at 51.4% (PLN Statistics, 2013)

• GHG emissions will keep going up. The public sector (gov building and public street lights) predicted to consume electricity (PLN Statistics, 2013):

14 TWh in 2015 22,2 TWh in 2020 32,1 TWh by 2024

current

condition

in the

energy

sector

Presidential Regulation no. 61 year 2011 on National Action Plan to reduce GHG Emissions (RANGRK) by 26% by 2020 against BAU additional 15% by 2020 with international support

GHG

emission

reduction

policy

Inefficient public street lighting, due to: 1) partially applied lump-sum electricity billing practices 2) insufficient metering in many cities 3) lack of awareness on beneficial financial calculation for investment on efficient lighting technologies.

BACKGROUND

public

street light

SSLI NAMA

National Energy Policy put energy diversification and energy

conservation as priority energy

policy

Energy and Mineral Resources for People’s Welfare

OBJECTIVES & STRATEGY OF SSLI NAMA

Demonstration activities and technical assistance to unlock and

leverage different kinds of domestic finance

• Demonstration phase (09/2015 – 06/2016) in 2-4 cities

The TSU start exploring long-term financing options and support more

cities to obtain access to existing funding mechanism

• Scaling up phase (07/2016 – 12/2017) in 2-8 additional cities

ESCO financing is the favoured financing instrument, but currently

hampered by the lack of a regulatory framework.

• Transformation phase (01/2018 – 12/2020) in 5-10 additional cities

Technical Support Unit (TSU) support for facilitating financing proposals

TSU support for ESCO contracting and regulatory framework

By 2020 the SSLI aims at reducing GHG emissions by 425.000 tCO2e (1.400.000 tCO2e by 2024 at the end of LED lifetime) in up to 22 cities in Indonesia by improving levels of energy efficiency in the area of public street lighting in Indonesian urban areas. Additional emission savings will result from the installation of metering systems and the improvement of cabling and services

Transformational change will be achieved by: • Upscaling of SSLI NAMA to other cities nationwide using domestic finance • Addressing regulatory barriers to efficient street light investment

Strategy

Energy and Mineral Resources for People’s Welfare

Estimated full cost (2015-2020): USD 294 Million for 22 cities

Required financing (2015-2020): USD 19 Million NAMA grant, that

divides into:

FUNDING REQUIRED

11,5 million USD for

technology investments

7,5 million USD for technical

assistance under Technical

Support Unit (TSU)

• Further demonstration activities to

showcase results

• Incentives to attract local

government interest

• Catalyst to unlock domestic

financing sources for scaling up

• Facilitate financing proposals

• Develop product performance and safety

standards for LED street light

• Develop guideline on Energy Service company

(ESCO) contracting for public street lighting

• Develop strategy on meterization of

streetlights

• Also need international expertise to connect

with bilateral and multilateral channels/network

FC component TC component

NAMA grant

(Technical & Financial Assistance)

Central & Local Gov’t

Budget

MEMR

SSLI TSU Technical unit

(developed from NAMA grant managed by GIZ)

Private sector

(ESCOs / suppliers)

District Street Light Agencies

International level

National level

Local level

ICCTF

Bappenas MoF

Box in green

Funding sources

International/domestic grant

Domestic loan

FUNDING SOURCES & COORDINATION MECHANISM 7,5 million USD

for technical assistance

11,5 million USD

for technology

investments

Energy and Mineral Resources for People’s Welfare

The SSLI NAMA will lead to several following sustainable co-benefits:

Energy security of supply (reduced electricity load) and electrification (by

freeing up existing and new capacity for extension of the network)

Cost savings for local governments in the long-term that means budget

allocations can be used for other purposes (e.g. health, education,

infrastructure improvements)

Long-term job creation, particularly in the following fields: Installation,

periodic maintenance, repair services, auditing services and generally

service providers (e.g. ESCOs) for energy efficiency technology and finance.

Improved quality of living (improved night-time safety, improved visibility

for drivers and pedestrians, improved overall appearance of the

neighbourhood)

DEVELOPMENT BENEFITS

As a NAMA, SSLI will apply MRV of emission reduction. Based on whether cities

under the SSLI NAMA have full metering in place or not, two different

monitoring approaches could be applied:

1) If kWh meters are in place, monitoring is through meter reading,

2) If no meters are installed, the approved CDM methodology AMS-II.L

demand-side activities for efficient outdoor and street lighting technologies

will be used, where energy savings are estimated by determining the lamp’s

wattage and the operating hours. Both approaches would apply sampling

for estimating the energy savings and emission reductions.

MRV OF SSLI

Energy and Mineral Resources for People’s Welfare

www.esdm.go.id

www.konservasienergiindonesia.info

www.ssli-indonesia.org