Indonesia wants to install solar energy equivalent to almost two 'Brazils'

Indonesia has announced an ambitious plan to add 100 GW of installed solar power capacity in five years, equivalent to almost twice the total installed today in Brazil (around 60 GW). 

The project includes 80 GW in solar mini-grids with batteries distributed across 80 villages and an additional 20 GW in centralized plants, with a focus on expanding energy access in remote areas.

With a territory about five times smaller than Brazil, Indonesia is betting on solar energy as a pillar of its energy transition. The mini-grids will consist of 1 MW systems with 4 MWh of storage. (BESS), operated by the Merah Putih cooperative. The large plants will serve both the main grid and isolated regions.

Despite the optimism, the IESR (Institute for Essential Services Reform) Indonesia warns of the challenges of implementing this plan, considered “challenging” by the government Indonesian. The initiative is still in the development phase, under the responsibility of three Indonesian ministries. 

“If implemented effectively, this project will become the largest rural electrification initiative and distributed renewable energy generation program in Southeast Asia, addressing the challenges of providing quality, equitable and affordable energy to all Indonesians,” said the IESR CEO, Fabby Tumiwa. 

However, the executive stressed that this project will face at least three challenges, particularly in the preparation and implementation phases, which must be overcome for its success. 

Challenges to be faced 

First, the selection of plant sites must take into account geographic conditions, electrical load requirements, and ensure the technical and financial viability of the 80 planned projects. For this reason, the involvement of universities, especially those with engineering faculties in Indonesia, is considered essential. 

Secondly, the construction of a 1 MW solar plant and a 4 MWh BESS requires at least 30 to 50 workers with various skill levels, over a period of 9 to 12 months, from the preparation phase to final testing (commissioning). 

The availability of highly skilled and moderately skilled workers for the construction and development of solar power plants and energy storage systems is currently very limited in the country. 

Furthermore, availability is uneven across Indonesia. To address this challenge, the government believes it needs to immediately conduct a workforce needs assessment and develop certified installers through collaboration with vocational training centers. 

Training programs should also reach local communities near project sites to ensure that the recruited and engaged workforce is made up of local residents. 

Third, planning and implementation require coordination between ministries, local governments, and stakeholders, including private companies. 

To this end, the country understands that it needs to transform this program into a PEN (National Strategic Program) and form a task force composed of elements that must be involved in the planning and implementation of the program. 

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