Indonesia Accelerates Energy Transition with Off-Grid Solar and BESS Technology

Reliable Power Solutions for Remote Areas and Industry

Indonesia is making significant strides in its energy transition by adopting off-grid solar power systems combined with Battery Energy Storage Systems (BESS). This technological integration provides a stable 24-hour power supply without reliance on fossil fuels, addressing critical energy needs in remote regions and industrial sectors.

Government Investment and Policy Support

The Indonesian government is coordinating investments worth approximately US$1 billion for off-grid solar plus storage projects. This initiative aims to expand sustainable electricity access beyond the national grid, particularly in remote islands and isolated areas. The program underscores the importance of off-grid solar with BESS in the national energy transition agenda.

Economic and Environmental Benefits

The adoption of PLTS off-grid with BESS offers dual benefits for industrial users: reduced operational costs and lower carbon emissions. Innovative financing models like Performance-Based Rental (PBR) enable companies to transition to solar energy without significant upfront investments. Under this model, customers pay only for the energy consumed while the service provider manages the entire system.

Industry Potential and Current Status

Indonesia's technical potential for solar power is estimated between 3.3 to 20 Terawatt-peak (TWp), according to the Institute for Essential Services Reform (IESR). However, as of August 2024, the installed capacity was only about 718 Megawatt-peak (MWp), indicating substantial growth potential. The levelized cost of electricity (LCOE) for solar power has stabilized at around US$0.043 per kWh in 2024, making it 41% cheaper than the most efficient fossil fuel-based electricity generation.

Technological Innovation

Companies like SUN Energy are at the forefront of providing tailored solar energy solutions, including containerized BESS - a first in Indonesia. This innovation supports the creation of robust, efficient, and low-carbon energy systems that maintain optimal performance even outside solar production hours.

Conclusion

The integration of PLTS off-grid and BESS represents a crucial step towards achieving Indonesia's energy independence and low-carbon transition goals. With government support and private sector innovation, this technology is poised to play a key role in shaping the country's sustainable energy future.