Expected ROI of wind solar storage project in Indonesia 2026

What is wind energy development in Indonesia?

This report is one of the deliverables of the Wind Energy Development in Indonesia: Investment Plan project. This project aims to push for the energy transition and the development of renewable energy, especially onshore wind energy, in Indonesia.

Is Indonesia's onshore wind energy sector still a challenge?

However, having realized only 0.13 GW of installed onshore wind farm capacity until 2023 and having only 0.14 GW in the pre-construction phase show the significant challenge to wind energy development that still lies ahead. What are the lessons learned from past studies and projects in Indonesia’s onshore wind energy sector?

Could solar and wind be the backbone of Indonesia's energy transition?

However, advancements in energy storage technology, such as battery energy storage systems and grid-forming inverters, could enable solar and wind, together boasting a technical potential of 3.4 TW, to serve as the backbone of Indonesia’s energy transition.

Should you invest in a wind energy project in Indonesia?

Before developers and investors decide to make large investment in a wind energy project in Indonesia, they require the right incentives and a well-balanced PPA to ensure a reliable business case throughout the project lifetime. If this business case cannot be guaranteed, they will perceive the project as having a high risk profile.

Is wind energy utilization fulfilling the expectations in Indonesia?

Based on the research, it has become clear that so far wind energy utilization is not yet fulfilling the expectations in Indonesia.

How does EU help Indonesia in wind energy development?

In achieving the goal, EU works closely with some of Indonesia’s government agencies related to energy sector i.e., Bappenas and JETP Secretariat. Specifically in wind energy development, EU has ongoing supports, some of them are the possible technical assistance and investment support (through European Investment Bank).