, Indonesia
2 views

Indonesia's utility-scale solar projects to take off

Competitive solar production costs will drive installations in the country, according to Roland Berger.

Indonesia will be one of the key drivers of solar installations in Southeast Asia, which is expected to have electricity consumption growth double the rate in China. Dieter Billen, principal at Roland Berger, talks about the types of solar projects set to take off in the country.

What opportunities and challenges lie ahead for solar power developers in Indonesia?
The biggest opportunities are utility-scale solar projects. If you have a large-scale utility-scale solar, especially in economies of scale, you can have competitive solar production costs.

Besides that we also see opportunity in corporate and industrial (C&I), basically providing solar generation to corporate and industrial clients, but also the Googles or Facebooks of this world. Third opportunity: rooftop solar, and finally decentralised solar opportunities for areas that are currently still off-grid.

What is your outlook on solar power in Indonesia?
Solar power is only one key development across the region and in Indonesia. Another major booming source is gas given the availability and the abundance of gas at cheap prices. That’s why solar and renewables, in general, are very complementary with gas; it perfectly fits together. These are exactly the two major trends that are occurring right now in the region.

We are very confident of the deep potential for solar power across in Southeast Asia. This is driven, first of all, by a boom in electricity consumption growth, which is expected to increase by 3.2% per year, that’s double as fast as China. This will require massive capacity additions across the region and we believe that renewables and in particular solar can be very promising opportunities to fill that gap.

At its current state, can solar power go beyond its intermittent nature?
This is one of the biggest challenges is the flexibility, the variability of solar power. There are different solutions for it. One is relying on other kinds of baseload, for example, gas, which is very complimentary and a very good solution to complement solar.

Other developments that we see is improving battery and other storage technologies, which are very new or emerging technologies. The price of batteries are going down tremendously, so this also provides fair opportunities to increase the share of renewables. But of course, in the short term, there are limitations to the percentage that solar power can have.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Power in your inbox

Danish energy company Ørsted launches expansion in Vietnam

This comes on the back of Vietnam increasing renewable energy to 30% by 2030

South Korea launches its largest 2 GW solar capacity tender

The country is expected to allocate 4 GW of solar capacity in 2021 across two tenders.

ACWA to build largest wind power plant in Central Asia

The company will construct the 1500 MW wind power project in Uzbekistan.

India’s Tata Power contemplating $473m IPO for renewable energy business

It initially planned to seek a partner to invest in its green assets.

China’s solar capacity installation crashes by 82% QoQ in Q1 2021

But increased by 35% YoY compared to Q1 2020.

India’s JSPL sells coal-fired power business for $400m to Worldone

This move aims to reduce the company’s debt and carbon footprint by almost half.

Japan authorizes operations of three ageing nuclear reactors

This is the first time reactors older than 40 years are approved to restart.

India’s NTPC launches tender for 600MW of wind and solar projects

Developers can compete for at least 50 MW to 600 MW in 10 MW multiples.

Here’s why the last dirty fuel project in Japan was scrapped 

The country recently pledged to cut down greenhouse gas emissions by 46% before 2030.

Singapore's Sunseap eyes expansion in Japan after latest Series E funding

The company earned an undisclosed amount from several new Japanese investors.