Saturday, 01 July 2017 13:38

Final FiT decision crucial to Indonesia’s solar future

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Power deficient Indonesia needs to catch up with its neighbours in solar PV adoption. Subha Krishnan considers whether a planned feed-in tariff will be the right mechanism to kick start this process

Indonesia has been facing power crises for many years and is currently banking on private sector investments to bridge the widening electricity demand-supply gap. Close to 30% of the population is not yet connected to the grid as the country is an archipelago of islands, but as the economy grows, the demand for additional power is expected to grow by 1.2-1.5% annually. According to Djoko Prasetijo, deputy director for system planning at Indonesia’s state utility Perusahaan Listrik Negara’s (PLN), Indonesia had a total installed capacity of about 38GW as of March 2012, but will need an additional 2.7GW to 3.4GW to support a 6% rate of economic growth.

PLN estimates 54GW of new solar PV capacity will be needed between 2009 and 2019. Source: Jeda Villa Bali
The country has been heavily dependent on fossil fuels for a long time now and is gradually trying to include renewable energy into its energy mix. The government has set an ambitious target to achieve 25.9% of its energy mix from new and renewable energy sources by 2025 and close to 39.5% by 2050

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