Due to the fact that Indonesia consists of roughly 17,000 islands, of whom ca. 6,000 are inhabited the complete electrification of all regions is a big challenge. So far on most of the small island's diesel generators are being used to secure a decentralized power supply. Nevertheless, the government has been reducing its fuel subsidies for diesel, making diesel-based generators less attractive for energy production. Instead especially in the eastern part of Indonesia, which is insufficiently electrified, there is a great potential for the use of PV for power generation due to the large number of sunshine hours. Wind energy has potential as well. Several projects are in implementation or planning stage currently.

Especially hybrid energy systems which consist mainly of PV and wind turbines, sometimes in combination with diesel generators, should secure the power supply in decentralized regions. The state-owned energy company PLN has a plan to electrify almost all inhabited islands and to use 23% of renewable energy until 2025. That’s why there are different official funding programs, lower taxes, import facilitation and guaranteed feed-in prices for energy, depending on the location and type of project.

Additionally, to the PV and (small) wind turbines it is also important to ensure an efficient energy production, distribution and utilization using control technology, software and energy storages. For the supply of hybrid electricity equipment Indonesia relies very much on imports.

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Delegation Partners: German Ministry of Economic Affairs and Energy (BMWi) & Eclareon

For more information, please go to EKONID website.