Renewable Energy Development Strategy in Indonesia: CDM Funding Alternative 

Abstract

Recently, renewable energy utilization in Indonesia (hydropower and geothermal power plant) is only about 3 % of the total reserve. It is means that there is still a big opportunity to develop renewable energy. With the coming of economic crisis since 1997, the growth of electricity demand is not enough to drive renewable energy development. Therefore, there should be assessed and developed new strategy for renewable energy, such as to develop integrated industrial estate for big hydropower and utilization of non-electricity purpose for geothermal. The other strategy is to sell Greenhouse Gas (GHG) emissions reduction via Clean Development Mechanism (CDM) to reduced investment cost. Under CDM regime developed countries can undertake collaborative project to reduce GHG gases in developing countries.