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Indonesia boosts solar power development

Indonesia's Institute for Essential Services Reform (IESR) announced on October 21 that the country’s installed solar power capacity has surpassed 700 MW. However, further acceleration is needed to meet global climate targets.

Indonesia’s installed solar power capacity reached 717.71 MW as of August 2024. (Illustrative photo: VNA)
Indonesia’s installed solar power capacity reached 717.71 MW as of August 2024. (Illustrative photo: VNA)

Jakarta (VNA) – Indonesia's Institute for Essential Services Reform (IESR) announced on October 21 that the country’s installed solar power capacity has surpassed 700 MW. However, further acceleration is needed to meet global climate targets.

As of August 2024, Indonesia’s installed solar power capacity reached 717.71 MW. The Cirata solar power project, installed in November 2023, had to nearly triple its capacity to 145 MW to meet demand.

Indonesia currently has around 17 GW of solar power under development, with state utility PLN planning to add 3.2 GW by 2030. Offshore solar energy development is also being prioritised to address electricity transmission challenges in remote areas. Floating solar panels are seen as more efficient, helping reduce evaporation and maintain water levels for irrigation.

Solar power installation costs have decreased by 19% over the past five years, mainly due to cheaper photovoltaic modules. PLN is working with affiliates to further reduce prices, and Indonesia encourages household-scale solar development to promote green energy products. In 2024, the Indonesian Government allocated 112 million USD for solar energy transmission projects.

Additionally, Indonesia sees solar development as an opportunity to export green energy, particularly to Singapore. With limited land for renewable energy, Singapore depends on cross-border energy from countries like Indonesia and Malaysia.

Recently, Vena Energy and Shell Eastern Trading signed an agreement to export 400 MW of solar power from Indonesia’s Riau Islands to Singapore./.

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