Indonesia to install 450MW wind power by 2027

The additions could be raised to 550MW if barriers are addressed.

Indonesia is expected to install 450 megawatts (MW) of wind capacity between 2023 and 2027, but if deployment is accelerated and barriers are removed, it could add 550MW capacity.

In a report, the Global Wind Energy Council (GWEC) said the challenges faced by Indonesia, which has 150MW of installed onshore wind capacity, include barriers to policy frameworks, transmission infrastructure and permitting schemes.

GWEC cited the inadequate project screening in Indonesia as projects can secure offtake deals without having to show permitting, feasibility or sufficient need sources. There is also a lack of penalties for those who failed to deliver, leading to not credible projects and robust securing of offtake agreements.

“This presents a challenge to Indonesia’s ability to hit its renewable energy targets and potentially damages trust in the wind industry,” it said.

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The report also noted that Indonesia’s grid planning is “complicated by the nature of the country’s archipelagic geography.

Indonesia should broaden pre-qualification criteria for project viability and conduct a government-funded study to identify optimal locations for wind projects and ringfence selection locations for wind only to accelerate the sector’s growth.

GWEC also recommended the government increase spending commitments for grid modernisation and expansion. It also urged the promotion of the diversification of the energy mix and competitive processes to ensure a low-cost renewable energy supply.