Opportunities and Challenges in Renewable Energy Project Development: An Investor’s View
(Room Garuda 7A, 1st Floor)
19 Sep 18
11:30 AM
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1:00 PM
Tracks:
TRACK G - Renewable Energy Strategy & Technology
Southeast Asia is developing and are an energy intensive region with renewable Energy playing supporting role. With an abundance of centralised agricultural resource, bio-waste to energy generation is an attractive venture for a baseload power source to national grid system in Indonesia. However, Indonesia challenges the growth of renewable energy industry as volatile socioeconomic and geopolitical revisions make it difficult for investors to find security in their ventures. But with good risk management, education of local communities and authorities on sustainability, and more flexible project financing, Renewable Energy opportunities are plentiful in Indonesia. This paper presents the prospects and risks encountered by Cenergi, a leading Malaysian Renewable Energy Asset Developer, in investing into the Indonesian market and reflected through its pioneer biogas plant project. Here, brand presence, exponential capital development, and reputability are intangible factors that couple with project development to make for a successful plant. Hurdles faced by the Investor range from technical and commercial, to regulatory and socioeconomic issues. Highlights include financing and policy issues, whereby financiers are unfamiliar with Renewable Energy installations or refuse to approve unreferenced projects. The recent volatility in national policy has added to this scepticism and created contradicting perceptions of the industry within local authorities. Indonesia offers abundant feedstock, opportunities, and human capital that encourages prospective project investment and expansion. To ensure Renewable Energy challenges are capped and their risks managed, all parties must play a role. Local stakeholders increasing their understanding and active participation in Renewable Energy will be key for greater investment in the region by leading the industry’s transparent growth, whilst Technology providers can share investment risks for mutually beneficial ventures.