Indonesia s photovoltaic energy storage policy

What is Indonesia's potential for solar energy?

Indonesia’s technical potential for solar ranges from 3,300 GW to 20,000 GW, according to IESR estimates, while the country’s long-term energy policy targets up to 108.7 GW of solar by 2060. If implemented effectively, the program could redefine Indonesia’s energy landscape and serve as a global benchmark for large-scale distributed renewables.

What is Indonesia's Energy Policy?

Indonesia’s rich coal resources have long dictated the country’s energy policies. Coal dominates the electricity supply and is an important export commodity that generates economic benefits to the government. Meanwhile, Indonesia’s vast renewable energy resources – wind, solar and geothermal – remain largely under-utilized.

What are the local content requirements for solar projects in Indonesia?

Indonesia has onerous local-content requirements for solar projects divided by project type (on-grid vs. off-grid) and by components (see Appendix B for details). The local content rules’ goal is to have 42.2% of a PV project rely on locally-made equipment but Indonesia’s solar industry lacks the maturity and scale required to meet such a target.

How will Indonesia's moratorium on new coal power plants affect solar energy?

The country’s moratorium on new coal power plants and long-term net-zero target creates an opportunity for rapid solar expansion. In the short term, Indonesia aspires to boost “new” and renewable energy supply to 23% of its primary energy mix by 2025 and at least 31% by 20501.

Does Indonesia need an energy storage ecosystem?

IESR notes that Indonesia is still in the early stages of energy storage adoption and stresses the need for a comprehensive strategy to accelerate the development of an energy storage ecosystem.

Is there a large-scale energy storage system in Indonesia?

“Currently, there is no large-scale energy storage system operational in Indonesia. The development of small-scale energy storage technology is being led by the private sector, followed by state utility companies.