Average photovoltaic ESS price per 250MW in Indonesia

Is LCR regulation affecting solar PV industry in Indonesia?

The LCR regulation also hinders the developments as it mandates the LCR for solar PV to be minimum 50% for 2018 and 60% for 2019 while according to (IEEFA, 2019) the current local content of Indonesian solar panel manufacturers mostly range from 40-50%. It means there is a necessity for redesigning the LCR policy.

How much does a solar PV installation cost?

The LCOE for the international benchmark, without PLN charges, is in line with those reported in Singapore for a ground-mounted 5 MW installation, 48.60 US$/MWh. The tool calculates an IRR of 16.44%, and a pay-back period of 6 years. IEA estimated that in 2019, Solar PV installations in Indonesia had an LCOE of 80 US$/MWh.

Why do energy projects cost more in Indonesia?

The local content requirement for energy projects in Indonesia was also reported to be one of the factors that increase project costs. According to MEMR Decree No 5/2017, the local content for energy projects in Indonesia was a minimum of 40% in 2017 and will be gradually increased up to 60% in 2019.

What is the energy mix for power generation in Indonesia?

The power generation energy mix should comprise approximately 23% of NRE, 54.6% coal, 22% gas and 0.4% diesel fuel by 2025 (PLN, 2019b). However, Indonesia is currently of energy to date is around 13%. target. In the electricity sector, the share of renewable Figure 5. Development of fuel mix for installed power generation

What is the interest rate for power plant projects in Indonesia?

Most power plant projects in Indonesia have 70-80% of debt in its financing and depending on the funders, the interest rate ranges from 5-8% (international funding) and 7-12% (local funding). Getting a below-market rate of interest (in Indonesia means below 5%) will also reach WACC to below 5%.

How much does a kilowatt-peak system cost?

A larger system will cost more in total, but the unit cost per kilowatt-peak (kWp) will be lower and more cost-effective. For instance, a 6 kWp system may cost you about Rp 15 million/kWp, but by installing a larger 20 kWp system you may be able to command a price around Rp 12 million/kWp.