RENW. ENER SMAL PW P

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The principal objectives of the Renewable Energy Small Power Project are to: (1) facilitate private sector-led development of small renewable power projects, selling electricity to the state corporation (PLN) on a commercially sustainable basis; (2) promote environmentally sound energy resource development and reduce dependence on fossil fuels; and (3) strengthen Indonesia's institutional capacity to sustain renewable energy development. Developing renewable energy sources for power generation will reduce diesel consumption, and correspondingly lower carbon dioxide emissions, which is the global environmental objective. The project consists of two components: (1) Investment -identifying prospective biomass and mini-hydro power projects, owned and operated by private developers, who will sell electricity; and financing information, transaction, and pre-investment costs; and (2) Technical assistance comprising project implementation support and institutional development- a project support group will be established to assist project developers with: (a) environmental review of their projects as required by the World Bank; (b) implementation support in the form of limited technical advice to the project developers: and (c) pre-investment activities, such as pre-feasibility and feasibility studies. This component will also finance consultants who will help prepare a strategy for renewable energy resource information collection and dissemination, and implement this strategy.