Ambitious push for renewable energies; Indonesia keen to encourage solar energy development

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This regulation is part of the government’s efforts to harness the country’s enormous renewable energy potential (thus cutting off its traditional reliance on crude oil, coal and natural gas, while treating planet Earth with a little more respect. , reflected in the country’s ambition to become carbon neutral by 2060).

The Ministry of Energy and Mineral Resources has said it is aiming for solar power to reach a capacity of 3.6 gigawatts (GW) by 2025, which requires investments of at least IDR 45 trillion. (approximately 3.1 billion USD). If achieved, this is expected to reduce national coal consumption by about 2.9 million metric tonnes per year.

Moreover, once the solar energy market expands in Indonesia, it should also encourage the development of a domestic industry for manufacturing solar panels (these solar panels, known as rooftop photovoltaic power plants). or rooftop photovoltaic systems, currently sourced mainly from Chinese manufacturers).

Unfortunately, there is a problem. Even though Regulation 26/2021 entered into force on August 20, 2021, it cannot yet be implemented. Dadan Kusdiana, Director General of Renewable Energies and Energy Conservation at the Ministry of Energy and Mineral Resources, explained (Monday, September 20, 2021) that the effective implementation of Regulation 26/2021 requires the publication of ‘a presidential regulation which regulates the tariffs for the purchase of electricity from renewable energies. (including solar energy).

The reason Indonesia needs new solar-related regulations is that previous regulations have proven to be unattractive (and outdated). Regulation 26/2021 therefore amends Regulation No. 49 of 2018 on energy and mineral resources on the use of solar energy systems on roofs by customers of Perusahaan Listrik Negara (Regulation 49/2018) which imposed procedures and general requirements for the installation of photovoltaic systems on roofs in customers of Perusahaan Listrik Negara (abbreviated PLN).

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The full article is available in our September 2021 report. This report can be ordered by sending an email to [email protected] or a message to +62.882.9875.1125 (including WhatsApp).

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