North Lombok is the youngest regency (municipality) in the Indonesian province of West Nusa Tenggara, located on Lombok Island. Energy demand in West Nusa Tenggara totalled more than 1,950 GWh in 2019 and was growing by 5.9% annually. With increased economic development in the region, energy demand is expected to continue to grow rapidly to 2030.

To reduce greenhouse gas emissions in the city and to support the provincial target to generate 35% of electricity from renewable sources by 2025, the local government has set ambitious goals to deploy renewables in a cost-efficient and sustainable manner. North Lombok has rich potential for cheap biomass residues and opportunities to harness wind and solar energy. Out of 8.97 MW of operating power plant capacity in North Lombok, 8.82 MW is derived from renewables, primarily micro-hydropower (the 7 MW Segara and 1 MW Santong plants) and solar energy in Gili Islands.

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To support local communities, the North Lombok government developed a Cost-sharing Financing Scheme for Household-scale Biogas to simultaneously reduce dependence on traditional biomass and cut greenhouse gas emissions in the residential sector. Although this scheme was originally an initiative of the provincial government, the North Lombok government has taken measures to adopt it in the city region. The cost is shared between the local government and Hivos / Yayasan Rumah Energi, along with the household users of the biogas, who pay a small amount to ensure citizen participation and ownership.

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As of 2020, some 1,152 household-scale biogas units using organic waste had been installed in the North Lombok region through this scheme. The cost of one unit of biogas is IDR 13 million (USD 933), and the local government shares this amount by contributing IDR 4-5 million (roughly USD 290-360) per unit (30-40%). To support the technical portion of the project, Hivos / Yayasan Rumah Energi provide high-quality biogas digesters to the users as well as three years of after-sales service for civil buildings and one year for pipe and stove installations.

Source: See endnote 29 in the Financing and Investment in Cities chapter.