average office building energy storage price per 800MW in Indonesia

Why is battery energy storage system important in Indonesia?

However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation. Hence, the battery energy storage system (BESS) technologies have a critical role in the development of Indonesia’s renewable energy.

Will Tesla invest in Indonesia's battery energy storage system sector?

There have been talks with Tesla, with plans to invest in Indonesia’s Battery Energy Storage System sector. Tesla has an outstanding reputation in its production of technology that is carbon neutral. The BESS produced and used by Tesla has a relatively low negative environmental impact.

Why do Indonesians need energy storage?

Indonesia's focus on industrial growth creates a demand for reliable power. BESS can offer backup power, improve power quality, and enable cost savings through peak shaving. The Indonesian government recognizes the importance of energy storage.

Does Indonesia need solar & wind energy storage?

Although, there is no policy mandating the installation of energy storage in solar or wind projects in Indonesia, the abundance of solar and wind resources in Indonesia’s archipelago and increased potential demand across industries indicate that BESS demand is poised to grow substantially in the near future.

How much does a solar power plant cost in Indonesia?

installed in Indonesia with capital cost ranges from - USD/kW. This is close to the average investment cost in Europe, but higher compared to the average cost in North and South America, Africa (up to USD/kW) and China and India (around USD/ kW).

How to reduce the cost of renewable electricity in Indonesia?

This is one reason why having access to cheap capital is one of the most critical factors for bringing down the cost of renewable electricity. Most power plant projects in Indonesia have 70-80% of debt in its financing and depending on the funders, the interest rate ranges from 5-8% (international funding) and 7-12% (local funding).

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