PV energy storage cost vs benefit calculation in Indonesia

How much does a PV-plus-energy storage system cost in Indonesia?

BNEF estimates the current LCOE of a PV-plus-energy storage (PVS) system in Indonesia is $113-251/MWh (real 2020) and already cost-competitive against diesel, which can be as pricey as $200/MWh in remote areas due to high fuel costs. PVS systems are likely to become cost-competitive against new coal and gas plant within the decade.

How much does solar PV cost in Indonesia?

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$/MWh. This compares with an IRENA estimate of the worldwide average of 60 US$/MWh in 2019, falling to 48 US$/MWh in 2021.

What are the local content requirements for solar projects in Indonesia?

Indonesia has onerous local-content requirements for solar projects divided by project type (on-grid vs. off-grid) and by components (see Appendix B for details). The local content rules’ goal is to have 42.2% of a PV project rely on locally-made equipment but Indonesia’s solar industry lacks the maturity and scale required to meet such a target.

Are price-based policies sufficient to stimulate growth in solar PV?

Results show that current price-based policies are deemed insufficient to stimulate growth in the solar PV market, only covering approximately 13% of the investment cost required by the industry. Thus, necessitating a reactivation of Feed-in-Tariffs (FiT).

How much electricity can be produced by PV-battery-systems in Indonesia?

The total annual net amount of electricity which can be produced by PV-battery-systems in Indonesia is 403 GWh, of which 339 GWh is cost-effective. The total amount can be produced by a total of 389 MW p of PV and 6.0 GWh battery capacity.

How much water can be used for floating PV projects in Indonesia?

Regulation 6/2020 issued by the Ministry of Public Works and Public Housing stipulates that 5% of the water surface at dams can be used for floating PV projects. PJB Investasi estimates that this translates to 4.3GWp of floating PV potential in Indonesia.