Expected ROI of container energy storage project in Indonesia 2030

Is energy storage developing in Indonesia?

IESR has issued a report for the first time assessing the development of energy storage in Indonesia in Powering the Future: An Assessment of Energy Storage Solutions and The Applications for Indonesia.

How does the Indonesian Energy Ministry procure new power capacity?

The Indonesian Energy Ministry procures new capacity through tenders. More powerful clean power incentives, such as auctions, are not on the horizon. The most powerful policy tool so far is a renewables purchase price for projects, introduced in 2017.

What are some potential energy storage projects in ASEAN?

Other potential energy storage projects are the Cirata projects—the largest floating solar planned for ASEAN at 145 MW in Purwakarta region, West Java and eastern parts of Indonesia such as 2x50 MW in Bali and 70MW in the new capital, the city of Nusantara, East Kalimantan.

When will a battery storage facility be built in Indonesia?

In the BAU scenario, the construction of battery storage facilities commences in 2030 for 2-hour (2H) duration batteries in provinces such as East Java, Jakarta, Lampung, and Riau, followed by other provinces except Aceh, North Sumatra and West Java starting in 2035.

Why is battery energy storage system important in Indonesia?

However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation. Hence, the battery energy storage system (BESS) technologies have a critical role in the development of Indonesia’s renewable energy.

Is Indonesia able to secure a steady pipeline of renewables investment?

Indonesia is not able to secure a steady pipeline of renewables investment, experiencing large annual fluctuations dependent on singular deals. Much of the investment from IPPs also involves companies majority-owned by state utility PLN.