Indonesia Clean Energy Battery Storage System
Indonesia is the fourth largest country in the world with approximately 280 million people, has the second longest coastline, with 81,000 km, in the world after Canada, and is the largest archipelago country in the world. The country possesses more than 17,000 islands with the same width as with the continental area of The United States.
Indonesia is a market in the energy transition as the country is moving from fossil fuels to clean energy resources. In 2023, Indonesia derived approximately 60% of its energy from coal, while renewable energy’s contribution is estimated at about 15%. By 2025 and 2030, the Indonesia government aims to achieve the target of 23% and 30% of renewable energy contribution into the energy mix. Although this goal set by the government is ambitious, this reflects the strong will of Indonesia to deepen renewable energy generation in Indonesia. This is further underscored by Indonesia’s global commitment to achieve net-zero emissions and decarbonize its economy by 2060
Solar and wind energy are some of Indonesia’s most developed renewable energy resources generating 207 GW and 135 GW of power respectively. However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation. Hence, the battery energy storage system (BESS) technologies have a critical role in the development of Indonesia’s renewable energy. During the United Nations Climate Change Conference Conference Of Parties (COP) 28 in Dubai, Indonesia joined the BESS Consortium with other countries, including India, Kenya and Egypt. This initiative seeks to accelerate the development of BESS projects as well as open commercial and public financing for the long-term development of these energy storage systems.
PLN, the state-owned electricity company, has a wind power project with an Indonesian private large energy conglomerate, PT Adaro Power, in partnership with PLN’s subsidiary company, PT PLN Nusantara Power/ PT Pembangkitan Jawa Bali Investasi (PJBI). This wind power project plans to generate 70 MW in Tanah Laut, Kalimantan utilizing 10 MW of BESS technology. PLN and Indonesia Battery Corporation (IBC), the state-owned battery company, are working on another pilot project with a 5 MW energy storage system. PLN indicated that BESS technology will in the future be applied to all of its power plants. Other potential energy storage projects are the Cirata projects—the largest floating solar planned for ASEAN at 145 MW in Purwakarta region, West Java and eastern parts of Indonesia such as 2x50 MW in Bali and 70MW in the new capital, the city of Nusantara, East Kalimantan.
In the private sector, the number of Indonesian industrial zones are growing as Indonesia pushes to grow its downstream development and strengthen manufacturing. There are also a growing number of local and global manufacturing companies investing in Indonesia and seeking to meet net-zero commitments. We assess this as a potential area of BESS development as global corporates investing in these industrial area zones would need clean, reliable, and sustainable energy resources and BESS’s role will be critical to support such efforts. Although, there is no policy mandating the installation of energy storage in solar or wind projects in Indonesia, the abundance of solar and wind resources in Indonesia’s archipelago and increased potential demand across industries indicate that BESS demand is poised to grow substantially in the near future.
For more information, please kindly contact: Commercial Specialist Mr. Mario Simanjuntak (Mario.Simanjuntak@trade.gov)