West Nusa Tenggara is a province of Indonesia facing severe energy shortages. The province contains 10 districts and municipalities spread across a large geographic region with a mountainous topology that makes electricity transmission expensive. The current grid has about 14 MW of generation capacity at central power generating stations. The government of Indonesia has examined and changed its policy to better facilitate local generation that would reduce transmission costs while providing local economic growth through independent power producers (IPPs).
To allow for the growth of IPPs several major steps were taken that could be used in similar power markets.