Consultant for Policy and Regulatory Framework Assessment for Energy Efficiency Investment in Indonesia
No Winners Yet :
-
BACKGROUND
The ASEAN Centre for Energy (ACE) is an intergovernmental organisation that independently represents the 10 ASEAN Member States’ (AMS) interests in the energy sector. The Centre serves as a catalyst for the economic growth and integration of the ASEAN region by initiating and facilitating multilateral collaborations as well as joint and collective activities on energy. It is guided by a Governing Council composed of Senior Officials on Energy from each AMS and a representative from the ASEAN Secretariat as an ex-officio member. Hosted by the Ministry of Energy and Mineral Resources of Indonesia, ACE office is located in Jakarta.
Part of the efforts to fulfil its function as a regional centre of excellence that builds a coherent, coordinated, focused and robust energy policy agenda and strategy for ASEAN, ACE conducts joint studies, policy dialogues and capacity buildings for ASEAN Member States to support the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025.
APAEC 2016 – 2025 is served as the blueprint for enhancing energy connectivity and market integration in ASEAN to achieve energy security, accessibility, affordability, and sustainability for all AMS. These provide the regional blueprint for reducing the energy intensity of the region by 32% by 2025. One of the main program areas is Energy Efficiency and Conservation (EE&C). The EE&C program area has an outcome-based strategy (OBS) that is: OBS 5 – to advance Energy Efficiency and Energy Management in industry, which focuses on promoting energy management in industry to increase competitiveness and reduce energy consumption.
The industry sector accounted for 39.1% of total final energy consumption in the region in 2020, well above the other sectors[1]. This number is on course to be tripled by 2050. Characterised as a hard-to-abate sector due to its fossil fuel-dependent operations, this sector requires strategies specifically tailored to decarbonise. For these reasons, implementing energy efficiency measures in the industrial sector is essential for near- and mid-term strategies before fuel or technological substitutes become viable in the future, further accelerating energy transition while enhancing energy security.
However, adoption of energy-efficient technologies and measures is often limited by a wide range of barriers, including lack of awareness, limited access to finance, regulatory challenges, and perceived risks associated with new investments.
PROJECT DESCRIPTION
In 2023, Green Climate Fund and Korea Development Bank have signed a funded activity agreement (FAA) for a programme called “Supporting Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States programme”.
The programme provides a package of innovative energy efficiency solutions including financial de-risking mechanisms, exploration of new energy service business models, development of a supportive regulatory framework, and technical assistance for industry sector in Indonesia. There are three main components of the programme:
- Energy Efficiency Finance: provide backstopping credit risk of local FI’s own loan with GCF Credit Guarantee via local FIs
- De-risking Mechanism: introduce Energy Saving Insurance (ESI) and ESCO financing structure through knowledge sharing, workshops, consultations, and capacity buildings
- Technical Assistance for the Market Readiness: strengthen Local Financial Institutions’ capacity, provide technical advisory services for industry player, and develop regulatory frameworks.
ASEAN Centre for Energy (ACE) is an executing entity, providing technical assistance activities to execute component 2 and 3 of the programme mentioned above.
The programme starts from April 2024 and ends in April 2031.
OBJECTIVE
Indonesia’s industrial sector is a significant contributor to national energy consumption, and improving energy efficiency (EE) is crucial for economic competitiveness, environmental sustainability, and achieving national climate commitments. However, despite various regulations and initiatives, EE investments remain constrained due to regulatory gaps, financial barriers, and institutional challenges.
The GCF-KDB Programme: Supporting Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States aims to address these challenges by promoting innovative financing mechanisms, credit guarantees, and technical advisory services. As part of this effort, a comprehensive study is required to assess the institutional, policy, and regulatory framework governing EE in Indonesia, identify gaps, and propose actionable recommendations for regulatory improvements.
To conduct this study, the Programme seeks to engage a qualified consultant with expertise in policy analysis, energy efficiency, and regulatory frameworks.
TASKS TO BE UNDERTAKEN
The consultant will undertake the following tasks:
Task 1: Develop Study Framework and Work Plan
- Develop a detailed research methodology, including data collection and analytical approach.
- Identify key stakeholders (e.g., government ministries, financial regulators, industry representatives, ESCO, and energy experts) for interviews / consultations and potential secondary data resources for supporting the analysis.
- Prepare an inception report outlining the study framework and data collection plan.
Task 2: Conduct Institutional and Regulatory Mapping
- Review and analyse existing laws, regulations, and policies related to energy efficiency from relevant ministries/stakeholders (e.g., MEMR, Ministry of Industry, Ministry of Environment, Ministry of Finance, Financial Services Authority/OJK).
- Identify policy gaps, overlaps, and inconsistencies that may hinder EE adoption.
- Map institutional roles and responsibilities for EE governance.
Task 3: Assess Implementation of EE Policies and Regulations
- Evaluate the current status of EE policy implementation in industries and its effectiveness with key indicators (e.g: reduced energy consumption, number of industries adopting EE/energy management, number of investments in EE, compare the achievement against pre-policy implementation and national target)
- Identify key challenges faced by industries in complying with EE regulations.
- Assess the availability of financial instruments and incentives for EE investment.
- Conduct surveys, interviews and/or focus group discussions with policymakers, financial institutions, and industry players to understand the status and effectiveness of current EE-related policies.
Task 4: International Energy Efficiency Policies Benchmarking & Best Practices
- Identify and analyse EE regulatory frameworks in selected countries with successful EE policies (e.g., Europe, China, Japan, and/or selected ASEAN countries).
- Extract lessons learned and potential policy adaptations for Indonesia.
Task 5: Develop Policy Recommendations
- Propose regulatory and institutional improvements to enhance EE adoption, including potential financing mechanisms
- Provide a roadmap for regulatory reform with clear policy/regulation actions and responsible entities.
Task 6: Report Writing and Dissemination
- Prepare and submit draft and final reports incorporating feedback from stakeholders.
- Present findings and recommendations in a validation workshop with key stakeholders.
Submit a final comprehensive report and an executive summary.
SUBMISSION OF APPLICATION
Please submit the proposal alongside your CV or Company Profile to email with the subject: “EE Policy Assessment_GCF-KDB”, to ACE’s Procurement Division ([email protected]) and cc to [email protected] no later than 11 April 2025 (GMT+7).
We encourage early applications as the recruitment process will close upon the selection of a suitable candidate.