Indonesia Clean Energy Development
2011-2014 || U.S. Agency for International Development
As a major subcontractor to the USAID-funded Indonesia Clean Energy Development (ICED) Project, Deloitte Consulting LLP is helping Indonesia make progress towards achieving low-carbon development and Greenhouse gas emissions reduction goals through improved environments for renewable energy (primarily biomass, biogas, and small hydro), industrial energy efficiency, and clean transport.
In direct support of the ICED Project, Deloitte Consulting LLP is implementing activities in the general areas of renewable energy policy, regulatory assessments, project development and finance, and capacity building. In this regard, Deloitte’s major contributions to the project include identifying gaps and providing recommendations to the Ministry of Energy and Mineral Resources for improving and implementing energy policies and regulations in support of clean energy development, conducting comparative analyses of effective fiscal incentives and subsidies used in other emerging market countries to facilitate investments in clean energy development by the private sector, assisting the state-owned electric utility (PLN) in revising its standard Power Purchase Agreement for small renewable energy projects in an effort to facilitate greater project implementation by the private sector, supporting the development of a renewable energy resource inventory/geographic information system (GIS) database for use by interested developers of clean energy projects, performing due diligence reviews of promising renewable energy and industrial energy efficiency projects for potential lenders and investors, and providing project development support and transaction structuring assistance to private developers of promising projects.
Many challenges and bureaucratic impediments confront potential developers of renewable energy and industrial energy efficiency projects in Indonesia today. Some of these hurdles include:
Deloitte Consulting LLP is helping to provide policy support and technical assistance to various governmental stakeholders at the national, provincial, and kabuten levels regarding planning, design, and implementation of clean energy programs and low-emissions development strategies. In addition, we are providing drafting assistance in the preparation of revised PPAs to encourage investments in clean energy projects including small hydro, biomass power, biogas power, and solar PV technologies. We are also providing targeted technical assistance to clean energy project developers and industries contemplating major energy efficiency retrofits. Finally, we are providing risk management and mitigation support to both developers and lenders alike to facilitate renewable energy project financings.
Deloitte’s technical assistance team members have been active in providing the following specific activities intended to promote new investments in clean energy projects:
As used in this document, “Deloitte” means Deloitte Consulting LLP, which provides strategy, operations, technology, and human capital consulting services, Deloitte Financial Advisory Services LLP, which provides financial advisory services, and Deloitte & Touche LLP which provides governance and risk oversight and reporting advisory services. These entities are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.