Opportunity and challenge for small wind power project in Indonesia

This paper address the opportunity and challenge of small grid projects, especially in funding and convincing investors. The investment in wind turbines is significant and requires funding from financial institutions. The problem for conventional financial institutions is the risk of repayment, so they need collateral for the loans given. The aims of this paper is an endeavor to uncover the opportunity and challenge of small grid wind turbine. Most of the wind turbine installations are in remote areas spread along the north and south coast of Java, eastern Madura, northern and southern Sulawesi and parts of Nusa Tenggara. SWOT Analysis is used to define the situation for small wind power project. This paper highlight the result of the analysis : (Strength) Wind energy is a clean energy source that is widely available, especially in islands and offshore areas. (Weakness) Funding difficulties for wind turbine projects, especially for small scale. (Opportunity) New technologies to increase efficiency in Small Scale Wind Turbines. (Threat) Future policy regarding incentives and support for IPP and small-scale wind turbine installations.. It is recommended to search alternative funding scheme beside the conventional including Peer-to-Peer Lending with its various forms. In addition the new technology for Turbines efficiency should be adopted in order to reach the economy feasibility.