Indonesia continues to stimulate public interest in the usage of rooftop solar power plants as part of the country’s goal to reaching a renewable energy mix target of 23 percent by 2025.
The government has set a target of 3.6 GW of installed rooftop PV capacity by 2025 and this should result in the reduction in coal consumption by about 3 million tons per year.
After careful considerations, the country’s administration has decided to open up options for individuals to obtain power from renewable energy sources and contribute to the reduction of greenhouse gas emissions (GHG).
PT Perusahaan Listrik Negara (Persero) which is an Indonesian government-owned corporation and generates the majority of the country’s electrical power, produced a report that stated the power exported by solar rooftop consumers to PLN, is only about 25 percent, with the industrial sector contributing about 5 to 10 percent of the energy produced by solar roofs.
One of the key changes in the policy is to allow solar rooftop consumers up to 100 percent of the power export by solar rooftops to PLN. We believe that this new policy change will help to incentive consumers to install solar rooftops.
The new policy change is expected to create around 100,000 new jobs in the renewable sector and should require new investments of up to USD 3 billions for the physical developments of solar rooftops.
There are concerns about reduction in revenue for the government-owned electricity generation corporation if the changes in policy spark new consumer behavior. Current estimates hold the potential losses at about USD 350 millions per year but the government is working with the industry to handle this issue.
Terra Link Research 