Indonesian Political, Business & Finance News

SUSTAIN says rooftop solar and power wheeling will accelerate 100 GW target

| Source: ANTARA_ID Translated from Indonesian | Energy
SUSTAIN says rooftop solar and power wheeling will accelerate 100 GW target
Image: ANTARA_ID

The scheme not only opens new revenue opportunities for PLN but also provides certainty of green electricity supply for multinational companies with emission reduction targets.

Jakarta (ANTARA) - The Indonesian Sustainable Welfare Foundation (SUSTAIN) assesses that rooftop solar and power wheeling schemes are the primary instruments to achieve the 100 gigawatt (GW) solar energy target set by President Prabowo Subianto in a short time.

By implementing these two schemes, the government is deemed not to need to burden the State Revenue and Expenditure Budget (APBN) or add debt.

“The 100 GW solar energy project requires significant investment, but it can be accelerated through the involvement of the public and private sector in developing rooftop solar and power wheeling,” said SUSTAIN Lead Researcher Adila Isfandiari in her statement in Jakarta on Monday.

According to her, the development of rooftop solar by households and the utilisation of power wheeling schemes by the industrial sector can encourage public and private participation in supporting the realisation of the project.

By the end of 2025, the national new renewable energy (EBT) mix is recorded at only 15.75 per cent, with a total EBT power plant capacity of 15,630 megawatts (MW).

Meanwhile, fossil energy still dominates around 85 per cent.

To achieve the 100 GW electrification target in two years, Indonesia needs to increase the EBT growth rate by almost 50 times compared to the current historical trend.

SUSTAIN assesses that accelerating EBT development is important to strengthen national energy resilience, especially amid global condition uncertainties.

In the context of fiscal limitations, rooftop solar and power wheeling schemes are seen as solutions to quickly add renewable energy-based electricity capacity without relying on state financing.

Through these schemes, PLN remains the system operator and network provider, while also earning revenue from network usage fees (wheeling fee), and generator investments can be driven by the private sector.

“With a conservative assumption that each household installs rooftop solar of 1-2 kWp, this segment has the potential to add around 2.9 GWp to 5.8 GWp of installed capacity and can become a source of rapid growth (quick wins) in the short term, especially since it does not require APBN financing,” said Adila.

She added that participation from non-subsidised customers has the potential to become the main catalyst in accelerating EBT capacity additions, while also reducing the burden on the government and PLN in electricity provision.

“Acceleration towards Prabowo’s 100 GW target will greatly depend on policy strengthening, particularly through deregulation and incentives for rooftop solar and power wheeling to encourage private sector and consumer participation,” she added.

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