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Huge potential for solar in Indonesia despite the current minor installed capacity

Indonesia, despite possessing massive solar energy potential, has seen only a minimal integration of PV into its power grids. However, Indonesia’s state utility, the PLN has announced a number of plans to increase the share of renewable energy and solar PV. This means vast development potential for solar energy projects in Indonesia.

Solarbe Global aims to find out more about local environment by inviting experts including Tara F Khaira, CEO of CarbonStock ID, Jerry Sun, Senior Manager of Product Promotion at JA Solar, Lizzy Nguyen, Marketing Manager in SEA Region at GoodWe Technologies, and Yogi Adhi Satria, Business Development Manager at Berkeley Energy Indonesia.

Tara F Khaira opened the session with his presentation on the topic of Challenging the curtailment paradox in a high solar future.

He emphasized on the highest carbon dioxide in atmosphere since measurement begins, and proposed that companies can utilize the carbon credit thus reduce their emission level set by the government, and increase the economic value of the investment. The action is important because the value of carbon credit is more than trillion dollar, according to Bloomberg and New York Times.

Khaira also praised various complementation of PV facilities, such as agri-photovoltaic and floating PV system, which is a great solution to maximize the land use besides assuring the power generation.

Jerry Sun, Senior Manager of Product Promotion at JA Solar then lead the audience to focus more on local technology trends and how JA Solar’s Deep Blue modules create more customer values.

Sun said that the 2,465mm*1,134mm module, as the standard size of large-format module, comprehensively included the production, packaging, transportation, installation, reliability, system support and product performance, one of the mature paths for the industry to improve the power of modules, but the 182-78 version of the size of the module has a higher open circuit voltage, and it is not conducive to the reduction of BOS cost, but also associated with the risk of heat spots.

Considering the high temperature and humidity in Indonesia and making the module to better perform under such environment, JA Solar and TÜV Rheinland carried out a one-year outdoor demonstration project in hot and humid climate conditions at the national outdoor demonstration base of photovoltaic products located in Qionghai, Hainan Province, China. The half-year data shows that N-type modules using Bycium+ batteries are about 2.9% higher than P-type modules in terms of power generation per watt.

Yogi Adhi Satria, Business Development Manager at Berkeley Energy Indonesia, an experienced developer of renewable energy, further stressed the huge potential for solar energy development in Indonesia despite the current minor installed capacity. He mentioned that the potential for solar installation could reach 3,295 GW while only 0.19 GW has been installed.

Satria mentioned that favorable policies for solar energy development are underway, but challenges like policy implementation, limited land area, increasing land price, land and roof condition, etc. still persist.

Floating solar at dams and lakes, in particular, boasts huge potential, according to Satria, with an installation potential of 89,366.96 MW in 295 locations. The Public Work Ministry of Indonesia published a new regulation in 2023 regarding floating solar at reservoirs, increasing the utilization area for floating solar from maximum 10% to 20% of the dam area. However, floating solar on lakes has not been regulated yet.

Lizzy Nguyen, Marketing Manager in SEA Region at GoodWe Technologies, said that the main supply and consumption energy type in Indonesia is still mainly occupied by fossil fuels, and renewable energy only accounts for 12.2% in total energy supply mix. She stressed that utility and large commercial scale installation are the main driver of the solar growth in the market.

Nguyen then introduced GoodWe’s solutions for residential, utility-scale and other application scenarios, and installation projects incorporated with GoodWe solutions.

During the panel session, the speakers shared insights and perspectives on the nation’s renewable energy aspirations. Indonesia’s ambitious plan to add 22 GW of renewable energy capacity, particularly in solar, was a central topic. The speakers underscored the promising opportunities for both utility-scale and distributed solar projects, emphasizing the need for comprehensive data to aid project planning.

Challenges, such as the country’s island-based energy infrastructure and intermittency issues, were also discussed, with energy storage solutions seen as vital.

The removal of local content requirements by 2025, as reported by Bloomberg, garnered attention. Speakers saw this policy change as a boon for investors, but they stressed the importance of local manufacturers enhancing competitiveness.

The transition from p-type to n-type solar panel technologies was another focal point, with a consensus that n-type modules would dominate the market due to their advantages in efficiency and reliability.

Click here to watch the replay: [LIVE] Solar Focus | Unlock Vast Solar Power Potential in Indonesia | Solarbe Global

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