Indonesia to install 4.7GW of solar by 2030 under decarbonisation plan

An artist’s impression of the Cirata floating solar project, currently under construction in Java. Image: Masdar.

Indonesia is aiming to deploy an additional 4,680MW of solar by 2030 as part of efforts to reach net zero carbon emissions by 2060.

Energy minister Arifin Tasrif said a new 2021-2030 master plan will see Indonesia source 51.6% of its added power capacity by the end of the decade from renewables, while the remainder will be new fossil fuel plants.

Speaking during a virtual presentation today (Tuesday), Tasrif said the country’s projected annual increase in electricity demand over the next decade has been lowered to 4.9%, down from a previous estimate of 6.4%, due to the pandemic impacting economic growth.

To reach the goals included in the master plan, the government expects independent power producers to play a larger role in the development of renewables projects over the coming years.

Tasrif also said that the government will encourage the development of interconnection between Indonesia’s main islands to improve electricity reliability and increase renewables penetration.

The strong potential for Indonesia’s solar sector was revealed in a report published in July by Wood Mackenzie, which suggested the country may become the fastest-growing PV market in the Asia Pacific region by end of the decade.

Growing from a base of 300MW, the country’s solar capacity could reach 8.5GW by 2030, according to the research firm, which said the PV sector could be supported by a US$600 million loan from the Asian Development Bank to help Indonesia’s state-owned power company PLN expand electricity access and promote renewables in eastern Indonesia.

PLN’s solar development efforts have already seen it form a joint venture with Masdar to construct a 145MWac floating solar project at a reservoir in West Java. The partners recently reached financial close for the Cirata plant, which is now under construction and due to begin commercial operation by the end of 2022.

Singapore-based solar developer Sunseap Group also revealed plans to develop what it says will be the world’s largest floating solar project on Indonesia’s Batam Island. The 2.2GWp installation plant is slated for completion in 2024, when it will provide energy locally as well as potentially to Singapore via a subsea cable.

Read Next

August 12, 2022
ACWA Power posted strong H1 2022 results as it continues to divert its portfolio to renewables and low-carbon technologies.
August 9, 2022
Chicago has entered into an agreement with Constellation for the purchase of renewable energy to supply its facilities by 2025.
August 8, 2022
India deployed 8,359MW of solar PV in the first half of the year, marking a significant increase of 71% compared to the same period last year
July 27, 2022
European countries need to double the pace of solar PV installations if the continent is to keep pace with its climate commitments, new research from Ember has revealed.
PV Tech Premium
July 22, 2022
Analysts have flagged concerns over a lack of clarity from Indonesia’s government related to power exports, potentially spelling trouble for project developers looking to transmit renewables generation from the country to neighbouring Singapore.
July 11, 2022
Energy major bp has signed a memorandum of understanding with German conglomerate thyssenkrupp focused on the supply of low-carbon hydrogen and renewable power in steel production.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event