The IKEA Foundation is happy to award New Energy Nexus Indonesia a grant to support the work of an upcoming generation of renewable energy entrepreneurs.
Committed over the next three years, the $10 million will help New Energy Nexus Indonesia and partners accelerate the transition to a renewable energy economy by educating over 6,000 people and supporting 60 rising entrepreneurs.
Initiatives include plans to expand an existing energy startup acceleration programme to eight major cities across Indonesia. Startups and developers will receive coaching on providing electricity to off-grid communities, and $4 million in seed funding will help get their products and services to market.
Indonesia accounts for over 35% of Southeast Asia’s energy demand. Of the country’s total population, 9%—23 million people—lack sustainable modern energy. Meanwhile, heavy reliance on fossil fuels causes air pollution and harmful carbon emissions.
Inhabiting over 6,000 islands, many people in Indonesia struggle to access electricity, according to Diyanto Imam, Programme Director at New Energy Nexus Indonesia. “The obvious solution is renewable energy. It is the winning value proposition for both the economy and the environment. Coal is not as price competitive as solar and it’s only a matter of time for renewables to become abundant, close to free and accessible for all,” he says.
“Our mission is to reduce carbon emissions and also to make sure that no one is left behind as the sustainability revolution takes off. We are supporting New Energy Nexus Indonesia because access to renewable energy needs to be made quicker and more affordable, with solutions centred around the people who need it most,” says Shambhavi Sharma, Programme Manager at the IKEA Foundation.
This grant follows a year-long pilot in Indonesia that engaged 360 people through community events that resulted in 16 start-ups fuelled by renewable energy.