Indonesia has issued rooftop solar PV system development quotas for state electricity company PLN between 2024 and 2028, which aim to add 5.75GW of capacity.
According to Indonesian think tank Institute for Essential Services Reform (IESR), the total rooftop solar PV quotas in 11 power systems between 2024 and 2028 consist of 5,746MW of new capacity. This includes annual quotas of 901MW for 2024, 1,004MW for 2025, 1,065MW for 2026, 1,183MW for 2027, and 1,593MW for 2028.
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However, IESR said that the quota distribution had not been carried out based on the clustering/subsystems outlined in a previous document issued by the Ministry of Energy and Mineral Resources of Indonesia.
IESR executive director Fabby Tumiwa said allocating rooftop solar PV quotas at the power system subsystem cluster level would offer clarity for consumers and ensure investment certainty for rooftop solar PV businesses, adding that without a net-metering mechanism, rooftop solar PV installations will primarily serve commercial and industrial (C&I) customers.
Additionally, IESR said the newly issued quota is still not in line with the National Strategic Program target of reaching 3.6GW of rooftop solar capacity by 2025, which was set in 2021.
Indonesia’s national electricity plan states a target 23% share of renewables in the electricity mix by 2025, increasing from 14% in 2021, according to the International Energy Agency (IEA). However, IEA said implementing the plan may be challenging in Indonesia because of delays in the construction of large generation projects.
Additionally, Indonesia’s plan forecasts relatively little use of solar PV due to the cost of solar in the country, although solar is the cheapest source of newly built electricity generation in multiple markets across the globe.
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