Project Description

Indonesia aims to cut emissions by up to 43% by 2030 and accelerate renewable deployment across its islands, particularly by replacing diesel-based generation that dominates the power supply of hundreds of small and remote island grids. In this context, EBTKE requested AFD’s support to prepare future technical assistance on green hydrogen and renewable integration. PIA was contracted to scope this assistance through a documentary review (over 30 studies) and consultations with 16 key public, private, and donor stakeholders. The work assessed Indonesia’s positioning in the emerging GH₂ value chain and analyzed three key use cases: industrial applications such as fertilizers and chemicals, mobility for heavy-duty and port transport, and GH₂’s role in decarbonizing island power systems through storage and grid support. The findings outline a set of technical-assistance assignments, including support for GH₂ standards, logistics, cluster development, human-resources development, and RE-for-small-islands actions, providing AFD and EBTKE with an actionable framework for subsequent cooperation.

Key Takeaways

The mission clarified Indonesia’s strategic entry points for green hydrogen, identifying industrial, mobility, and island-power applications as priority use cases. It also highlighted the importance of standardization, logistics, and capacity building to structure a coherent national framework, laying the groundwork for future AFD–EBTKE technical cooperation.

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