00060776 Wind Hybrid Power Generation and Market Development Initiative (WhyPGEN) Mid-Term Evaluation

Report Cover Image
Evaluation Plan:
2011-2015, Indonesia
Evaluation Type:
Mid Term Project
Planned End Date:
12/2014
Completion Date:
09/2014
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
20,000

Share

Document Type Language Size Status Downloads
Download document WHypGen MTR Evaluation report_Final_erc.docx report English 3295.41 KB Posted 2472
Download document TOR_MTR WhyPGen International consultant.docx tor English 77.30 KB Posted 542
Title 00060776 Wind Hybrid Power Generation and Market Development Initiative (WhyPGEN) Mid-Term Evaluation
Atlas Project Number: 00058270
Evaluation Plan: 2011-2015, Indonesia
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 09/2014
Planned End Date: 12/2014
Management Response: Yes
Focus Area:
  • 1. Others
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Output 1.5. Inclusive and sustainable solutions adopted to achieve increased energy efficiency and universal modern energy access (especially off-grid sources of renewable energy)
Evaluation Budget(US $): 20,000
Source of Funding: GEF
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Jan van den Akker Evaluator, Leader
Himsar Ambarita Evaluator, Member
GEF Evaluation: Yes
GEF Project Title:
Evaluation Type:
Focal Area: Climate Change
Project Type: FSP
GEF Phase: GEF-4
GEF Project ID:
PIMS Number: 4223
Key Stakeholders: DG of Electricity and Energy Utilization
Countries: INDONESIA
Lessons
Findings
Recommendations
1 Recommendation 1. Adjusted list of indicators with baseline and end-of-project targets. To better monitor progress in each of the six Components, the MTR Team has analysed the current list and revised into a list of 34 progress indicator, giving the quantified baseline, mid-term situation and end-of-project target, which is presented in Box 13 of this MTR report.
2 Recommendation 2. Extension of project period until June 2016 The MTR team recommends extending the project?s closing date to July 2016 without any budget increase, basically to allow the first wind farms to reach the stage of commissioning and or financial closure within the project?s period and the project to provide support as needed in the wind farm design process, as well as to allow for certain capacity strengthening activities (financial mechanism, technical trainings) to be developed targeting specific market cluster beneficiaries and subsequently implemented.
3 Recommendation 3. Suggested actions for the monitoring and adaptive management: 3a. Develop a strategic plan to cover barrier-removal activities A budgeted strategic plan 2014-2016 would serve to fine-tune the various outputs and activities to the needs of the actors in the various market clusters groups (large wind farms, medium, medium-small; utility as investor or power purchaser; private investors and developers), particularly in the Components that so far has shown less results, i.e. the Components 3 (financial) and 6 (technical training and capacity building). 3b. End-of-project status report on wind power development Towards the end of the project, it might be worthwhile to undertake a qualitative stocktaking on remaining barriers and issues and suggestions for BPPT, MEMR and other stakeholder on actions needed to address these gaps and future directions.
4 Recommendation 4. Activities needed to strengthen project impacts 4a. Support to rehabilitation of Nusa Penida. While PLN and MEMR should take responsibilities for the repairs needed on the wind turbines, it is suggested that the Project make available some funds to provide a state-of-the-art safety, equipment protection, and system controls needed to switch automatically when transitioning between Islanded and grid-connected modes. 4b. Study on green funding and financing sources available for wind in Indonesia A new activity is proposed which would map the need for financial support and instruments per various market cluster (large investors/developers), analyse readiness of banks and institutions to provide loans for the various market segments (in particular the needs of developers of medium and small-medium sized wind projects)
5 Recommendation 4. 4g. Cooperation with ESP3 on strengthening RE and EE Clearinghouse at MEMR The project has been exchanging data on wind resources with the Danish-funded ESP3 project at MEMR Apart from data and info exchange, the two projects could work together and pool resources for examples in jointly commissioning the review analysis on impact of the feed-in tariff policy and other regulations on wind power (recommendation 4d), the guide for investors in wind energy (recommendation 4e) and grid connection impact study (recommendation 4j). As part of the project?s exit strategy, it should also be looked into with BPPT and MEMR how the Clearinghouse could be a depository of information, database, reports and documents after the proposed end of the project in 2016. 4h. Assessment of (technical) capacity building and training needs and plan for project-supported capacity strengthening and training activities The MTR Team proposes this as a sub-study of the before-mentioned strategic plan (2014-2016) focussing on assessment of the technical capacity building needs (in additional to the financial capacity strengthening of Outcome 3) of various types of beneficiaries (government and utility staff, large developers, investors and financiers, small developers, equipment providers, individual engineers and maintenance experts and subsequently presenting a plan of capacity strengthening (courses, workshops, seminars) within the budget availability of the WHyPgen project. 4j. Study on grid-related issues Often grid stability risks are overestimated by utilities and the potential contribution of intermittent sources of power underestimated. This assessment would deal with wind power transmission and grid connection issues, develop technical parameters and modelling for the grid connected wind farms to check grid stability and reliability of power supplies.
1. Recommendation: Recommendation 1. Adjusted list of indicators with baseline and end-of-project targets. To better monitor progress in each of the six Components, the MTR Team has analysed the current list and revised into a list of 34 progress indicator, giving the quantified baseline, mid-term situation and end-of-project target, which is presented in Box 13 of this MTR report.
Management Response: [Added: 2014/12/19] [Last Updated: 2014/12/26]

Agreed and initiated. There are several repetitions and overlapping between the component?s successes indicators. The project will refer to the revised list of 34 progress indicators as suggested by the reviewer.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Revised the success indicators of the six components activity, and use it as reference to the reporting and planning activities. ? Update the project board on the revised version of project?s success indicators per component activity for their endorsement
[Added: 2014/12/26]
WhyPGEN BPPT 2014/12 Completed
2. Recommendation: Recommendation 2. Extension of project period until June 2016 The MTR team recommends extending the project?s closing date to July 2016 without any budget increase, basically to allow the first wind farms to reach the stage of commissioning and or financial closure within the project?s period and the project to provide support as needed in the wind farm design process, as well as to allow for certain capacity strengthening activities (financial mechanism, technical trainings) to be developed targeting specific market cluster beneficiaries and subsequently implemented.
Management Response: [Added: 2014/12/19] [Last Updated: 2014/12/26]

Agreed and Initiated. Taking into account the nature of the project, as well as in consideration on the wind farm development process, extension for the project implementation period will provide more time and opportunity for the project in achieving the objectives and goals

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Revise and extend the work plan until June 2016 Presenting the proposal of time extension to the project board for their endorsement Administration process to Bappenas and Ministry of Finance on the project implementation time extension
[Added: 2014/12/26] [Last Updated: 2018/11/07]
WhyPGEN 2015/03 Completed History
3. Recommendation: Recommendation 3. Suggested actions for the monitoring and adaptive management: 3a. Develop a strategic plan to cover barrier-removal activities A budgeted strategic plan 2014-2016 would serve to fine-tune the various outputs and activities to the needs of the actors in the various market clusters groups (large wind farms, medium, medium-small; utility as investor or power purchaser; private investors and developers), particularly in the Components that so far has shown less results, i.e. the Components 3 (financial) and 6 (technical training and capacity building). 3b. End-of-project status report on wind power development Towards the end of the project, it might be worthwhile to undertake a qualitative stocktaking on remaining barriers and issues and suggestions for BPPT, MEMR and other stakeholder on actions needed to address these gaps and future directions.
Management Response: [Added: 2014/12/19] [Last Updated: 2014/12/26]

3a. Noted. The current project?s strategy has focusing on the type of utility: developers, investors, power purchaser, and manufacturers. There is a need for the project to have more specific focus on the market clusters groups. 3a. Noted. The current project activities had addressed barriers that had been identified in the preparation phase. At the end of the project implementation, project final report will cover the remaining barriers and recommendations to the related parties.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Project will develop the strategic plan that address the various market clusters groups
[Added: 2014/12/26] [Last Updated: 2018/11/07]
WHYPGEN BPPT 2015/03 Completed History
4. Recommendation: Recommendation 4. Activities needed to strengthen project impacts 4a. Support to rehabilitation of Nusa Penida. While PLN and MEMR should take responsibilities for the repairs needed on the wind turbines, it is suggested that the Project make available some funds to provide a state-of-the-art safety, equipment protection, and system controls needed to switch automatically when transitioning between Islanded and grid-connected modes. 4b. Study on green funding and financing sources available for wind in Indonesia A new activity is proposed which would map the need for financial support and instruments per various market cluster (large investors/developers), analyse readiness of banks and institutions to provide loans for the various market segments (in particular the needs of developers of medium and small-medium sized wind projects)
Management Response: [Added: 2014/12/19] [Last Updated: 2014/12/26]

4a. Agreed and initiated. The project had provided support to MEMR and PLN-Bali as the owner of 9 units wind turbine in Nusa Penida, starting from the assessment and identification of the turbines scratches, and providing monitoring system in the power plants. The project had allocated budget to support the development of smart grid system in the wind hybrid power generation at Nusa Penida. Noted On the financing aspect, the project had collaborated with PT. SMI to mobilize funding for wind projects.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Continue to provide the technical assistance required by MEMR and PLN Bali in identifying problems in the wind turbines unit Maintain close coordination with MEMR and PLN Bali in the revitalization process, including support the administration issues (asset transfers process) if required Continue to support the smart grid system development. ? Conduct training and capacity building on the wind project financing with PT. SMI and other local banks/financial institutions ? Team-up with PT. SMI in structuring the project finance of 2 potential locations for wind power projects: Lebak and Laipori, including mobilizing fund for the project development. ? Conduct study on green funding and financing sources
[Added: 2014/12/26] [Last Updated: 2018/11/07]
WhyPgen 2015/03 Completed History
5. Recommendation: Recommendation 4. 4g. Cooperation with ESP3 on strengthening RE and EE Clearinghouse at MEMR The project has been exchanging data on wind resources with the Danish-funded ESP3 project at MEMR Apart from data and info exchange, the two projects could work together and pool resources for examples in jointly commissioning the review analysis on impact of the feed-in tariff policy and other regulations on wind power (recommendation 4d), the guide for investors in wind energy (recommendation 4e) and grid connection impact study (recommendation 4j). As part of the project?s exit strategy, it should also be looked into with BPPT and MEMR how the Clearinghouse could be a depository of information, database, reports and documents after the proposed end of the project in 2016. 4h. Assessment of (technical) capacity building and training needs and plan for project-supported capacity strengthening and training activities The MTR Team proposes this as a sub-study of the before-mentioned strategic plan (2014-2016) focussing on assessment of the technical capacity building needs (in additional to the financial capacity strengthening of Outcome 3) of various types of beneficiaries (government and utility staff, large developers, investors and financiers, small developers, equipment providers, individual engineers and maintenance experts and subsequently presenting a plan of capacity strengthening (courses, workshops, seminars) within the budget availability of the WHyPgen project. 4j. Study on grid-related issues Often grid stability risks are overestimated by utilities and the potential contribution of intermittent sources of power underestimated. This assessment would deal with wind power transmission and grid connection issues, develop technical parameters and modelling for the grid connected wind farms to check grid stability and reliability of power supplies.
Management Response: [Added: 2014/12/19] [Last Updated: 2014/12/26]

4g. noted. The project is open to collaborate with any institutions or parties in promoting the wind energy development in the countries 4h. noted The capacity building and training activities had been conducted by the project by referring to the project document, and had addressed all the related parties (investors, manufacturers, operators & engineers, banks, etc). Other capacity buildings and trainings that going to be conducted will be based on the study and assessment to the necessity of the activities itself. 4g. Agreed. The project will launch the study and develop technical parameters and modelling for the grid connected wind farms to check grid stability and reliability of power supplies

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Further discussion will be conducted with ESP3 (Finland project) and MEMR on the clearing house establishment ? Review the necessity of capacity building and trainings type ? Conduct the required capacity building and training in consideration to the budget availability Conduct study on the grid related issues Collaborate with PLN and MEMR (DJK) in addressing the issues Collaborations with wind technology provider to conduct workshop on grid connection and PPA (Power Purchasing Agreement)
[Added: 2014/12/26] [Last Updated: 2018/11/07]
WhyPGEN 2015/03 Completed History

Latest Evaluations

Contact us

1 UN Plaza
DC1-20th Floor
New York, NY 10017
Tel. +1 646 781 4200
Fax. +1 646 781 4213
erc.support@undp.org