Consultancy
Energy Efficiency. Renewable energy N/A
Engaging Indonesia Banks in scaling up investment for sustainable energy: market needs analysis from a banking perspective
| Country : | Indonesia . |
| Client : | AFD - French Agency of Development . AFD - French Agency of Development |
| Start Date : | 2007 |
| Completion Date : | 2007 |
| Value of services : | 64 400€ |
| Funder : | AFD (French Development Agency ) |
| Associate/Partner : | N/A |
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| Description : |
Indonesia is expected to sustain a rapid growth in energy demand for the coming years. However, its very high energy intensity (compared to similar countries in the region) will probably decrease significantly. This increase in energy efficiency, as well as scale-up of alternative sources of energy are all the more important that the country currently relies mostly on costly fossil fuels, with domestic reserves being quickly depleted. Serious environmental concerns such as climate change and biodiversity conservation are also linked to these energy issues. Financing is obviously one of the main barriers to this scale-up of energy efficiency and renewable energy in Indonesia. |
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| Description of the Actual Services Provided | Objectives : The project aimed at analysing the market needs for a credit line program for energy efficiency and renewable energies implemented through local banks (without support from the State). It covered energy efficiency and renewable energies for both supply (cogeneration, trigeneration, wind power, small hydropower, geothermal power, biogas, biofuels…) and usage (in industry and service sectors) including various pre-feasibility studies particularly covering biomass projects and cogeneration. For each of these items, the consultant reviewed the financial, regulatory and institutional context and conduct a market needs analysis from the perspective of a local bank. Typical projects will be presented and capacity building needs for banks, enterprises and the public sector will be assessed. |