Development of 2050 Scenario Analysis on Energy and Consolidation of the Balmorel Power Sector Modelling in the Indonesian Energy Outlook - Indonesia

Funding and finance opportunity for energy efficiency

Indonesia and Denmark are cooperating through an Environmental Support Programme, with the current third programme phase (ESP3) running from 2013 to 2017. The overall ESP3 development objective is to support the Government of Indonesia (GoI) in reconciling economic growth with sustainable development through improved environmental management and climate change mitigation and adaptation.

The Danish government has likewise initiated a government to government cooperation with Indonesia on energy and energy efficiency to strengthen the partnership between the two countries. A Memorandum of Understanding was signed between the MEMR and the Danish Ministry of Energy, Utilities and Climate on October 22, 2015. The objective of the Strategic Sector Cooperation (SSC) is to assist Indonesian government agencies and other relevant stakeholders in developing relevant policies, strategies and solutions to increase the electrification rate and to achieve the government’s long-term RE and EE objectives. 

The Danish partner of the SSC program is the Danish Energy Agency and the main partners in Indonesia are the Ministry of Energy and Mineral Resources (MEMR) and the National Energy Council (NEC), who are both represented in the steering committee. Also, the Danish Energy Agency cooperates with the state-owned electricity company (PLN). The Consultancy must assist the Danish Energy Agency in the cooperation with the above mentioned institutions with the purpose of enhancing the long term energy planning through modelling different 2050 energy scenarios. The 2050 scenarios will be modelled in Balmorel and will be optimised on parameters as least cost development, NDC targets, electrification, LPG use, and others decided upon by NEC in cooperation with EBTKE and DEA.

The Balmorel power sector model was introduced to the NEC modelling team last year and further capacity building has been requested to continue the cooperation with more in depth knowledge about Balmorel power sector planning - to be used in the Indonesian Energy Outlook 2017. Further it has been requested that the consultancy - in cooperation with the DEA - has an enhanced focus on policy measure development.

ESP3 and SSC has already started an activity on technology data, where consultants are going to develop an Indonesian catalogue on technology data on power generation. The Technology catalogue will include projections on levelized cost of energy for all technologies both today, in 2020, 2025, 2030 and 2050. These data are essential in the development of the scenario analysis. 

Based on the above, NEC and EBTKE request ESP3 to develop several 2050 energy scenarios that can be used in the future energy planning in Indonesia to develop the energy sector in a cost efficient manner, and at the same time achieve its envisioned renewable energy targets.

The assignment will need approximately 4 man-months, with a maximum budget of DKK 1,000,000 and the time schedule is April 2017 - December 2017.

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