Supporting the subnational development of renewable energy: Lessons from West Nusa Tenggara, Indonesia

The report identifies that while West Nusa Tenggara has significant renewable energy potential, particularly in mini-hydro, development is hindered by a combination of governance issues, technical gaps, and financing barriers. Key challenges include land acquisition volatility, slow asset transfer, and a lack of coordination between on-grid and off-grid electricity supply. The document argues for a 'Public–Private–People Partnership' (PPPP) approach, emphasizing the need for provincial-level leadership, capacity building for Independent Power Producers (IPPs), and the strategic use of village-level funds to scale up renewable energy infrastructure.

• West Nusa Tenggara possesses substantial untapped renewable energy potential, with mini-hydro schemes alone capable of providing over 96.5 MW, significantly exceeding the 2015 total renewable capacity of 14 MW.
• Independent Power Producers (IPPs) face significant barriers to entry, primarily regarding access to finance, technical skills, and restrictive local permitting regulations.
• Governance and institutional issues frequently obstruct project implementation, including astronomical land price increases when projects are announced and delays in transferring assets from national to local government.
• There is a lack of coordination between the state electricity company (PLN) and off-grid providers, sometimes resulting in PLN expanding grid infrastructure into areas where off-grid facilities have recently been established, rendering the latter obsolete.
• Recent legislative changes, specifically Law No. 23/2014, have shifted the primary authority for decentralized energy and licensing from districts and municipalities to the provincial level.
• Significant financial resources are available at the village level through the Village Governance Law, which provides top-up funds of nearly US$750,000 per village, though these require better coordination and capacity building to be used effectively for renewables.

APA

Indrawan, M., Muchtar, R., Cameron, L., & Arumdatin, N. (2016). Supporting the subnational development of renewable energy: Lessons from West Nusa Tenggara, Indonesia. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2016/06/West-Nusa-Tenggara-Inside-Story_WEB-final.pdf

Chicago

Indrawan, Mochamad, Rosmaliati Muchtar, Lachlan Cameron, and Niken Arumdatin. Supporting the subnational development of renewable energy: Lessons from West Nusa Tenggara, Indonesia. Climate and Development Knowledge Network, 2016. http://cdkn.org/wp-content/uploads/2016/06/West-Nusa-Tenggara-Inside-Story_WEB-final.pdf.

Wikipedia

{{cite report |last1=Indrawan |first1=Mochamad |last2=Muchtar |first2=Rosmaliati |last3=Cameron |first3=Lachlan |last4=Arumdatin |first4=Niken |title=Supporting the subnational development of renewable energy: Lessons from West Nusa Tenggara, Indonesia |publisher=Climate and Development Knowledge Network |date=June 2016 |url=http://cdkn.org/wp-content/uploads/2016/06/West-Nusa-Tenggara-Inside-Story_WEB-final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{indrawan2016supporting, author = {Indrawan, Mochamad and Muchtar, Rosmaliati and Cameron, Lachlan and Arumdatin, Niken}, title = {{Supporting the subnational development of renewable energy: Lessons from West Nusa Tenggara, Indonesia}}, institution = {Climate and Development Knowledge Network}, year = {2016}, month = jun, url = {http://cdkn.org/wp-content/uploads/2016/06/West-Nusa-Tenggara-Inside-Story_WEB-final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }