The Institute for Essential Services Reform (IESR) in Indonesia has highlighted that the country has achieved 700MW of installed solar photovoltaic (PV) capacity. However, the institute cautions that this advancement is deemed “insufficient” to align with the global climate objectives.
According to a recent publication from the research institution, Indonesia’s installed solar photovoltaic (PV) capacity reached 717.71MW by August 2024. Notably, the Cirata floating solar PV project, with a capacity of 145MW and established in November 2023, nearly tripled the on-grid solar PV capacity for that year.
The report additionally mentions that Indonesia currently has approximately 17GW of solar photovoltaic (PV) projects in various stages of development. Indonesian state utility PLN is set to oversee the development of roughly 3.2GW of solar PV capacity by the year 2030.
Floating solar photovoltaic (PV) technology has emerged as a leading solution poised for implementation in Indonesia, acknowledged as the world’s largest archipelagic nation. Given the absence of transmission grids in certain areas, floating solar has the potential to supply renewable energy to various regions of the country.
Solar photovoltaic (PV) modules installed on water surfaces can also exhibit enhanced efficiency, attributed to their capacity to lower temperatures. The shading provided by the panels can decrease water evaporation, thereby conserving water for essential purposes such as drinking or irrigation.
The Singapore opportunity
A key factor propelling the advancement of solar photovoltaic (PV) technology in Indonesia is not solely centered on domestic decarbonization but also on the promising prospect of exporting clean, renewable energy to the island city-state of Singapore.
In nations such as Singapore, where energy demand is substantial but land availability for renewable energy production is limited, accessing energy from neighboring countries like Malaysia or Indonesia, which possess abundant land and solar resources, could play a crucial role in the decarbonization efforts and grid modernization.
As a result, Singapore has been actively engaged in creating several power corridors with other nations, such as the AAPowerLink initiative in Australia. This Australian project is designed to install a solar photovoltaic (PV) capacity ranging from 17GW to 20GW and energy storage capacity between 36.42GWh and 42GWh through a 4,300km subsea cable.
According to the IESR, Indonesia is projected to export a total capacity of 3.4GW to Singapore, which research institutes estimate to be approximately 7.56GW of solar photovoltaic (PV) power plant capacity.
PV Tech readers are likely informed that Vena Energy and Shell Eastern Trading have recently obtained provisional authorization from the Energy Market Authority of Singapore (EMA) to export 400MW of solar photovoltaic (PV) power from the Riau Islands in Indonesia to Singapore.
Utility-scale solar PV costs drop
One significant finding from the report is that the costs of developing utility-scale solar photovoltaic (PV) projects have decreased by 19% over the past five years, largely attributed to the declining prices of solar PV modules and reductions in soft costs.
In order to encourage the uptake of utility-scale solar energy, PLN has arranged bundled procurement that encompasses a variety of power plant types and has forged strategic alliances with its subsidiaries.
The IESR has recognized the necessity for an extra 746MW of flexible capacity to boost the implementation of rooftop solar PV systems. This added capacity will be sourced from flexible power plant operations, with a focus on coal, alongside a substantial deployment of energy storage systems.
In terms of funding for Indonesia’s solar PV projects in the pipeline, the report indicates that approximately US$112 million has been earmarked for development in 2024.
