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"Photovoltaic systems may become the backbone of Indonesia's energy system


Current Situation of Indonesian Photovoltaic Industry

According to the Indonesian Ministry of Energy and Mineral Resources (ESDM), Indonesia has very rich renewable energy potential, which may total 417.8 GW. Among them, the solar potential is as high as 207.8 GW, accounting for more than half of the total potential. However, as of 2021, Indonesia's installed solar power generation capacity is only 225 MW, and there are still a large amount of solar energy resources that have not been developed and utilized, with great development potential. 


The International Renewable Energy Agency (IRENA) pointed out in the report that photovoltaic systems may become the backbone of Indonesia's energy system by 2030. However, the Indonesian government’s expectations are far from those of the International Renewable Energy Agency (IRENA). In the survey report "Indonesia Energy Transition Outlook" released recently, the agency predicts that by 2050, the Indonesian power industry will undergo a "complete transformation". The report pointed out that by 2050, the share of renewable energy generation in the country's power generation structure may reach 85%, compared with about 12% in 2011.

Advantages of photovoltaic development in Indonesia

As an archipelago country with 17,000 islands, Indonesia is blessed with abundant solar energy resources. Indonesia is located near the equator, with long sunshine hours and high solar radiation intensity. According to the International Renewable Energy Agency (IRENA), Indonesia receives an average of 1,600-2,300 kWh of solar radiation per square meter per year, which equates to about 200GW of solar electricity generated annually.


In addition, the Indonesian government has also realized the importance and urgency of developing solar energy and has introduced a series of supporting policies and measures. For example: In October 2020, the "2021-2030 Power Purchase Plan (RUPTL)" was released, planning the development goals and paths of renewable energy in the next ten years. That is, in 2030, the proportion of renewable energy power generation will increase from the current 12.36% to 51.6% (20,923 MW), of which solar power will reach 4,680 MW (excluding industrial and commercial and rooftop photovoltaics). In addition, Indonesia’s rooftop photovoltaic potential is 32.5 GW, with 3.6 GW planned to be developed by 2025. "