Indonesia Sustainable Least-cost Electrification-1 (ISLE-1) Program

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The development objective of the Sustainable Least-Cost Electrification-1 (ISLE-1) Program - Program-for-Results for Indonesia is to increase access to sustainable and lower‐cost electricity in Maluku and Nusa Tenggara regions and strengthen the operational capacity of the electric utility. The operation contributes to addressing these three main sector challenges: it supports the development of low‐carbon, affordable and reliable electricity supply to enable increased electricity access and improved climate resilience in Indonesia’s Eastern Regions. The ISLE framework aims to provide a set of solutions to: (i) reduce the cost of generation in the Eastern Islands by increasing the share of least‐cost renewable energy (RE) generation and such by increasing the grid technical capacity and flexibility to integrate more variable RE (VRE) and improving Indonesian energy utility (PLN’s) dispatch operations capacity, (ii) improve grid efficiency and reliability by developing clear steps on how to assess electricity losses and system reliability, and (iii) reduce the financial burden on PLN for system expansion by mobilizing private investments. The ISLE framework is piloted in Maluku and Nusa Tenggara with the ambition of replicating the framework in other islands.