SOLAR PV IN INDONESIA

TAKING ADVANTAGE OF
THE NEW LANDSCAPE

Indonesias
Solar PV
Landscape

23% renewable energy mix by 2025

Government targets of 5GW of solar;
supported by the utility company
commitment in their electricity supply plan
High potential for solar PV integration
Diverse commercial and legal framework
that allow different business models

HOW BIG IS THE MARKET

Indonesias Installed Generation Capacity (2015)

Java-Bali and
Sumatra
(41GW)

Rest of
Indonesia
(4.1 GW)

Total Indonesian
solar PV
potential at 10%
penetration
(4.5GW)

Installed and Targeted Solar PV Projects in Indonesia

2025

6.4GW

Planned for
2025***
*** Maritje Hutapea, Director of Various Renewable Energy
http://ebtke.esdm.go.id/post/2016/06/14/1259/45.000.wm.un
tuk.capai.target.23.persen.pada.2025

2018

5GW
Target for
2018**
** Rida Mulyana, Director General of New and Renewable
Energy and Energy Conservation
http://ebtke.esdm.go.id/post/2016/07/21/1287/pemerintah.ta
warkan.250.mw.energi.surya

2014
22.45 MW*
*http://www.unescap.org/sites/default/files/Indonesia%20National%20Sustainable
%20Energy%20Strategy%20Report.PDF

Localized Energy
Generation Costs
A GIZ study reveals Indonesias utility
energy generation costs throughout the
country. This is very relevant since
Indonesias electricity grid consists of over a
large system in Java-Bali, medium sized grid
systems in Sumatra, Kalimantan and
Sulawesi, as well as 600 smaller isolated
grids (*).
* = ADB - Summary Of Indonesias Energy
Sector Assessment

Indonesias Electricity Sector Stakeholders

Abbreviated Direct Solar IPP Procedure With PLN

Developer submits
proposal to PLN (this
is in essence the PreFS)

Request for Proposal

by PLN (which
includes submission
of FS and grid study)

Proposal reviewed by
PLN for final approval

Commercial
Operation Date
Commences (PLN
start counting sale)

PLN reviews proposal

Pre-Qualification of
project details and
project developer

Price negotiation
with PLN (based on
PLNs assessment of
the project financials)

Commissioning with
PLN and handover to
project developer

Negotiate terms of
proposal with PLN
(this is in essence the
grid study and full FS)

Direct appointment
permit issued by
Ministry of Energy

PPA Signing

Construction

Approval for direct

appointment by PLN

Request for direct

appointment by
Ministry of Energy

Financial close

EPC contract
negotiated and
awarded

Some
steps here

A lot of
steps here

Timeline of MEMR Regulation 19/2016

BASIC PROJECT DEVELOPMENT PROCESSES

National Grid Identification
Regional Study
Project Area
Review
Site
Assessment
Feasibility
Study

A desk study of the Indonesian grid to

identify suitable regions for the project
developers risk appetite and other criteria
Captive power
A regional study is done to identify high-level logistics
and project implementation risks and select a likely
region

Within the region(s) that have been identified, location specific

reports and preliminary discussions with PLN and potential
sites will be identified

Look for potential land to acquire, specific discussions with PLN and local
government. Perform pre-feasibility surveys on a few highly likely sites
with possible land agreements

Full feasibility study of the project site including grid interconnection study,
logistics and project management assessment, and other work as required

Challenges = Opportunities

LOGISTICS
WHAT ARE
THE PORT
FACILITIES
LIKE OTHER
THAN
JAKARTA
AND
SURABAYA

HEAVY
EQUIPMENT
IS IT AVAILABLE ON
LOCATION?

SURVEY
NOT JUST A
DESK STUDY

A HIGHWAY

LETS GET

SERIOUS

BE
DIFFERENT
THAN THE
REST

SYSTEM SIZE

10% FROM DAYTIME

PEAK LOAD IS
TYPICALLY THE
RULE OF THUMB

NREL STUDY
WITH ADDITIONAL
REASONABLE RESERVES AND
RESOURCES DEPLOYED,
OAHU AND MAUI CAN REACH
ABOUT 20% PENETRATION
WITH VARIABLE RENEWABLE
ENERGY POWER PLANTS

Indonesias Electricity Sector Stakeholders

B2B WITH PLN

OVER 500MW IN
ACTIVE BILATERAL
INTEREST
AGREEMENTS WITH
PLN

ROOFTOP PV
WITH DECREASING COST
OF EQUIPMENT LARGE
ROOFTOP SOLAR PV
SYSTEMS ARE GETTING
CLOSE TO GRID PARITY
(US$0.08/KWH) IN
INDONESIA

PRIVATE PPA
MANY PRIVATELY HELD
COMPANIES ARE
OPERATING
THROUGHOUT
INDONESIA WITH HIGH
COST OF ENERGY

FINANCIAL ENGINEERING
RISK MANAGEMENT

OPPORTUNITY
BEING CREATIVE WITH YOUR BUSINESS
MODEL FOR SOLAR PV PROJECTS

THANK YOU