Yayasan Humanis dan Inovasi Sosial

Study on Enhancing decentralized renewable energy investment to achieve Indonesia’s Nationally Determined Contribution

Hivos seeks qualified candidates for the position of Study on Enhancing decentralized renewable energy investment to achieve Indonesia’s Nationally Determined Contribution.



As an archipelago country, consists of more than 10.000 inhabited islands, Indonesia has more challenges in providing energy, due to its geographical setting. However, the geographical setting provides more advantages for Indonesia, in terms of renewable energy resources. With these resources, Indonesia has the opportunity to utilize renewable energy both as off-grid and on-grid system. Not only for electrification needs, but also productive uses such as for agro-processing.

There are 240 million people in Indonesia, which resulted in the increasing Government responsibilities to provide accessible energy and affordable to all. While at the same time, as Indonesia ratified Paris Agreement back in 2016, the energy services are required to be low in greenhouse gases emission.

Unfortunately, although the renewable energy potential is high, financing decentralized renewable energy is very low, due to several factors, such as risks and scale of investment. Decentralized renewable energy is considered to have high risks, because of its nature that is affected by the availability of resources as well as technology. Another factor is because decentralized renewable energy located in remote areas, where most of the time, it was considered as not profitable due to the low willingness to pay at the areas.

If the current practices remain the same without changes, it is likely that the investment for decentralized renewable energy will remain low and not interesting for investment. As the results, thousands of inhabited islands in Indonesia, will remain difficult to access energy services and left in poverty.


Objective of the Study

This study aims to provide analysis related to decentralized renewable energy financial instrument required and how to leverage the investment of small to medium private or social enterprise players.

The research questions will be the following:

  1. What are the existing and potential business models for decentralized renewable energy in Indonesia?
  2. What are the barriers for private sector to enter decentralized renewable energy business in Indonesia and how to overcome the barriers?
  3. What would be the most suitable financing mechanisms and instruments to leverage private sector investment in decentralized renewable energy business in Indonesia?


Scope of work

The consultancy scope of work are :

1. Desk research and internal interviews. The Consultant review DRE context in Indonesia from existing literatures, studies and reports done by Hivos and other actors and development partners.

2. Stakeholder interviews and FGDs. The Consultant will interview, either in-person or via Skype, the key resource persons in rural electrification or through conducting FGDs. These stakeholders include:

  • relevant government agencies and or existing active BUMD doing DRE business
  • financing institutions, impact or angel investors and energy business incubators
  • private sector and/or renewable energy development partners
  • rural electrification players (cooperative, SPV etc)
  • civil society actors.

3. Desk research on comparative models in Indonesia and similar situation in other countries. The consultant will include the review of ways doing business in DRE from legal aspect in the existing policies.



The outputs of the study are the followings:

  1. Inception report which contains the rationale of the study, initial data and information, including hypothesis of the study;
  2. Progress report;
  3. Final report;
  4. Relevant FGDs for data collection.


Length of study

The timeframe for this study is 4 (four) months, including data collection, focus group discussions, interviews, and report writing. This research is expected to start in September 2019 to December 2019



The minimum requirements for the consultant are:

  1. The Candidate must be a team or organization;
  2. The Candidate must have vast experiences in the issue of energy, especially decentralized renewable energy in Indonesia. The Candidate must also have understanding on climate change as well as climate finance in Indonesia;
  3. Have experiences in working with various stakeholders both at local and national level;
  4. Provides a concept note on how the research will be conducted, including the budget related to the research.