What is the local content of solar energy projects in Indonesia?
According to MEMR Decree No 5/, the local content for energy projects in Indonesia was a minimum of 40% in and will be gradually increased up to 60% in . Due to the relatively small scale of solar manufacturing in Indonesia, it is unlikely that local production can be competitive against international prices.
Is solar power a good investment for Indonesia?
Solar power is best placed to ensure that the RUKN 75 GW target for RE is achieved ahead of the deadline. Indonesia currently has at least 16.5 GW of prospective solar projects, which is more than five times higher than the JETP Comprehensive Investment and Policy Plan (CIPP) (3.1 GW), and 30% higher than the RUKN solar target (12.8 GW).
Can solar energy be a strategy to meet Indonesia's energy goals?
Solar energy can be a strategy to meet this target,” said Deon Arinaldo, Program Manager of Energy System Transformation, at the launch of the Indonesia Solar Energy Outlook study report – Breaking the Walls: The Future of Indonesia’s Solar Energy and Energy Storage Innovations (15/10/).
Why do energy projects cost more in Indonesia?
The local content requirement for energy projects in Indonesia was also reported to be one of the factors that increase project costs. According to MEMR Decree No 5/, the local content for energy projects in Indonesia was a minimum of 40% in and will be gradually increased up to 60% in .
Could solar and wind be the backbone of Indonesia's energy transition?
However, advancements in energy storage technology, such as battery energy storage systems and grid-forming inverters, could enable solar and wind, together boasting a technical potential of 3.4 TW, to serve as the backbone of Indonesia’s energy transition.
How much solar power does Indonesia have?
Indonesia's total renewable energy potential is more than 3,686GW, with 3,295GW coming from solar. Yet, less than 13MW of solar PV has been installed. The government plans to change that. Its national power plan (RUPTL) sets a target of 17GW of solar capacity by , aiming for 113GW by . Rooftop solar is gaining ground.
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