ABSTRACT

This chapter provides a short overview of Indonesia's energy landscape, followed by a summary of the Indonesia Solar Home Systems (SHS) Project. Indonesia is an important energy player in the region and has a wealth of untapped potential for renewable energy development. It is, also, one of the four largest emitters of greenhouse gases when changes to land use are taken into consideration. Moreover, as one of the first SHS projects initiated by the World Bank, the Indonesia SHS Project is an important foundation of knowledge regarding their so-called market-based approach to renewable energy. The 1993 Outlines of State Policy highlighted the importance of an adequate, reliable, and reasonably priced electricity supply to serve the country's productive sectors, improve the living standards of Indonesians, and ultimately sustain Indonesia's economic and social development. The massive undertaking, requiring serious investments to be made into both developing Indonesia's solar PV market and formulating a national energy access policy to incentivize the adoption of renewable energy technologies.