The Solar PV Revolution in Indonesia’s Energy Transition

Indonesia is on the brink of a transformative energy transition, with solar photovoltaic (PV) technology at its core. According to Ember Climate, solar PV has been deemed "the most feasible" renewable energy source to replace coal-fired electricity, which currently dominates 61.8% of the national energy mix. By 2040, Indonesia aims to phase out coal entirely, with solar projected to account for 20% of the energy mix, a substantial leap from its current 0.2% contribution.

This ambitious shift aligns with the government’s broader energy goals, including boosting renewable energy’s share and achieving net-zero emissions. However, Ember’s analysis cautions that Indonesia's plan to increase gas-fired power capacity from 21GW to 108GW could hinder the growth of renewables. Solar PV, backed by Indonesia's abundant sunlight and decreasing installation costs, offers a more viable and sustainable alternative.

Policy and Recommendation for Success

To meet its renewable targets, Ember advocates phasing out 3GW of coal capacity annually while adding 8GW of renewable capacity. By 2040, this would result in 75GW of solar capacity and a total energy mix exceeding 200GW. Key reforms include:

• Private Sector Engagement: Attracting investments by removing bureaucratic barriers.
• Regulatory Frameworks: Identifying coal plants for closure and ensuring a smooth transition.
• Energy Storage Systems: Deploying 68GWh of battery storage to stabilize solar power supply.
• Grid Improvements: Enhancing infrastructure to support renewable integration.

The report highlights that Indonesia has significant resources to produce battery components, presenting an opportunity to establish a robust solar-battery ecosystem. Dr. Dinita Setyawati of Ember notes that this shift could position Indonesia as a leader in green energy, while boosting economic growth and energy independence.

Challenges and Opportunities

While the growth trajectory of solar PV in Indonesia is promising, achieving these ambitious goals requires strong policy commitments, international collaboration, and investment. The transition could drive Indonesia’s green economy, making it a model for other coal-dependent nations.