INDONESIA: CONSUTLANT FOR RENEWABLE ENERGY FINANCING STRATEGY

Please note that the deadline is based on Korean Standard Time Zone (KST, UTC+9)

INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page. 

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities. The organization also focuses on knowledge development and management activities that build a strong theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers, as well as building the conditions for public and private green infrastructure investments. 

GGGI’s role and objective in Indonesia is to assist the Government of Indonesia in delivering green growth by developing capacity, driving investment, and designing green projects with social, environmental, and economic benefits for the people of Indonesia. The collaborative Green Growth Program (GGP3 2021-2025) between the Government of Indonesia (GoI) and GGGI is tailored around the GoI’s own development priorities and targets established in Indonesia’s Medium-term National Development Plan (RPJMN 2020-2024). This is designed to specifically support the implementation of Indonesia’s Nationally Determined Contribution to the UNFCCC climate targets (NDC) and the achievement of the Sustainable Development Goals (SDGs).

The following priorities stand out as critical areas of support to the GoI:

• Effective policymaking and planning to drive the transition to a green growth model;
• Mobilizing public and private investment in sustainable and inclusive projects; and
• Enhancing the capacity of government and key institutional actors to develop and implement green growth policies, plans, and attract investments.

The Renewable Energy – Accelerated Transition in Indonesia (RE-ACT) is envisaged to contribute towards the acceleration of Indonesia’s transition from fossil-based to renewable energy and enable the achievement of the country’s renewable energy targets and more ambitious Nationally Determined Contributions (NDCs).

The RE-ACT project is providing support to the Ministry of National Development Planning (Bappenas) and the Ministry of Energy and Mineral Resources (MEMR), through three workstreams: (1) policy framework and implementation support, (2) stakeholder engagement and capacity development, and (3) de-risking instruments and financing mechanisms designed through stakeholder engagement. In addition to Bappenas and MEMR, the project will involve working with international and national partners, including but not limited to, the State Electricity Company (PLN), independent power producers (IPP), and other development partners, focusing on policy and regulatory support of renewable energy technologies from various natural resources.

Despite growing attention to renewable energy investment in Indonesia, the current financing discourse is often centered on large-scale projects supported by multilateral development banks and international financing initiatives or requiring deep structural changes. While these mechanisms are important, this often left the challenges to remain unsolved as areas for quick-wins enhancement to start the reform are often overlooked.

As a result, many renewable energy projects, including medium-scale and decentralized projects—face difficulties in accessing financing. There remains a significant “missing middle” in the market, where projects are too small to attract international development finance but too complex or risky for conventional commercial bank lending.

At the same time, Indonesia possesses significant domestic financial resources, including commercial bank liquidity and capital market instruments that could potentially support renewable energy investment if appropriate mechanisms and market structures are developed.

In this context, the RE-ACT project intends to hire a consultant to develop a Renewable Energy Financing Strategy that identifies practical and implementable financing mechanisms to mobilize investment and accelerate renewable energy deployment. Building on previous analytical work on renewable energy de-risking instruments under the RE-ACT project, which identified key financial, regulatory, and market barriers—particularly in mobilizing domestic capital and addressing the “missing middle”—this activity shifts the focus from diagnosis to implementation. The strategy will assess different renewable energy market segments to identify feasible and scalable approaches to operationalize prior recommendations, while focusing on solutions that can be implemented within the current institutional and financial landscape, as major structural policy reforms remain on-going.The strategy will assess different renewable energy market segments, including large-scale projects, medium scale “missing middle” projects, and small-scale projects, to identify targeted interventions that can unlock investment. The technological focus for this renewable energy projects is solar PV, wind, and mini-hydro.

DELIVERABLES AND PAYMENT SCHEDULE

GGGI is procuring the services of a consultant with experience and deep knowledge of the renewable energy financing ecosystem in Indonesia and adopts a holistic approach, to best achieve the objective of the project.

The consultant shall carry out the following activities:

Development of Renewable Energy Financing Strategy and Implementation Framework

1. Renewable Energy Financing Landscape and Market Segmentation

• Conduct an analysis of the renewable energy financing landscape in Indonesia, including a review of current investment flows, financing sources, institutional actors, and financing approaches currently supporting renewable energy development.
• Conduct a segmentation analysis of renewable energy markets in Indonesia, including but not limited to large-scale projects, medium-scale or “missing middle” projects, small-scale projects, commercial and industrial (C&I) renewable energy systems, and decentralized renewable energy applications.
• Market Demand and Adoption Considerations
  • Assess factors influencing the demand for renewable energy technologies across different economic sectors and market segments.
  • Identify potential opportunities where renewable energy technologies could support productive economic activities, but face barriers related to financing structures, infrastructure availability, or market coordination.
  • Assess the characteristics, investment requirements, and financing patterns of each renewable energy market segment.
  • Identify potential “winning segments” (segment with high impact potential from intervention)

2. Identification of Financing Gaps and Investment Barriers

• Identify financing gaps and barriers affecting renewable energy investment across different market segments, including challenges related to project size, transaction costs, risk perception, revenue structures, and access to appropriate financial instruments.
• Assess the extent to which existing financing mechanisms adequately address the needs of different renewable energy segments and identify areas where additional or alternative approaches may be required.

3. Exploration of Financing Opportunities and Market Solutions

• Identify and assess potential approaches that could improve access to financing for renewable energy investments in Indonesia, particularly for market segments that face limited access to existing financing mechanisms.
• Explore opportunities to mobilize domestic capital for renewable energy development, including through commercial financial institutions, capital market instruments, and other relevant financial intermediaries.
• Assess institutional, regulatory, or market factors that may influence the development and scalability of renewable energy financing mechanisms.

4. Risk Assessment and Investment Considerations

• Assess key financial and investment risks affecting renewable energy projects in Indonesia, including factors influencing the willingness of financial institutions and investors to participate in renewable energy financing.
• Review relevant international experiences in renewable energy financing and identify potential lessons that may inform the development of financing approaches in the Indonesian context.

5. Strategy Development

• Based on the analysis conducted, develop a Renewable Energy Financing Strategy outlining potential approaches to mobilize investment and expand financing opportunities for renewable energy across different market segments.
• Integrate findings and analytical results into a Renewable Energy Financing Strategy and Implementation Plan, presenting the financing mechanisms, implementation considerations, and expected investment impacts.

7. Stakeholder Consultation and Validation

• Identify relevant stakeholders and its role for renewable energy financing strategy and implementation plan
• Support stakeholder consultations with relevant ministries, financial institutions, renewable energy developers, industry associations, and development partners to validate key findings and proposed approaches.
• Incorporate stakeholder inputs and feedback into the final Renewable Energy Financing Strategy and Implementation Plan.
• Support coordination with the Ministry of Energy and Mineral Resources (MEMR), the Ministry of National Development Planning (Bappenas), Ministry of Finance, PLN, developers, financiers, and other relevant stakeholders during the review and validation process.

Costs of out-of-town business trips (travel and accommodation) are borne by GGGI upon submission of receipt. Transport reimbursement only applies for public transport/ taxi. Gasoline costs cannot be reimbursed. GGGI also does not provide daily allowance.

Tax is inclusive of the fee. GGGI does not withhold tax. The Consultant shall comply with the tax regulations.

Reimbursement for domestic travel (in-town travel) upon receipt submission can be done as long as the workplan which includes travels has been informed and agreed by GGGI. Reimbursement for printing is only for event related costs such as FGD, socialization seminar, etc.

Notes:

• The Consultant provides his/her own equipment to produce all deliverables.
• The Consultant shall submit the report in electronic versions readable by a Microsoft Office application.
• All output must be in both English and Bahasa Indonesia.
• Final deliverable must be approved by GGGI. The Consultant shall consider the comments and necessary revisions proposed to provide a final version of the deliverable in a timely manner.

EXPERTISE REQUIRED

• Master degree or higher in economics, business administration, finance, engineering, or other relevant studies;
• Minimum eight (8) years of experience working in topics such as climate change, renewable energy, or infrastructure projects financing and project designing in developing countries;
• Extensive knowledge on renewable energy, local financial landscape, and financing and innovative instruments in Indonesia and/or other relevant countries;
• Demonstrated experience in the design, development, and structuring of renewable energy projects, specifically oriented towards obtaining public and private investment;
• Proven experience in developing financial models and analyses used for due diligence process;
• Solid English reporting and writing abilities;
• Demonstrated strong interpersonal and motivational skills and sensitivity to the local environment.