Jakarta—A report by the Institute for Essential Services Reform (IESR) highlights that policies that encourage the growth of ESS in Indonesia must support its development. The report, titled Powering the Future, estimates that Indonesia needs to have at least 60.2 GW of energy storage capacity by 2060 to support the energy transition. Indonesia’s energy storage capacity is only 25 megawatt-hours (MWh), most of which comes from private initiatives.
His Muhammad Bintang, Author of Powering the Future 2024 and Coordinator of IESR’s Energy and Electricity Resources Research Group, said that Indonesia does not yet have a large-scale energy storage system.
“The electricity export scheme to Singapore could be an opportunity to accelerate the country’s adoption of ESS. With this project, energy storage capacity could increase to 33.7 GWH by 2030,” he said.
IESR recommends several important steps for the government to accelerate ESS development in Indonesia. First, the government must improve the regulatory framework and provide legal certainty to reduce risks for ESS developers.
“The government must ensure that there is commensurate compensation for ESS developers and provide incentives to increase investor confidence,” Fabby said.
Second, the government must improve ESS infrastructure and technology through pilot projects. This will allow various ESS technology options to be tested to find the most appropriate solution for Indonesia’s needs. “We suggest pilot projects for various storage technologies, which can serve as models for future ESS development,” Alvin said.
Third, the development of the energy storage ecosystem also needs to be accompanied by policies that support economic and sustainability aspects. “We need large storage capacity and environmentally friendly and efficient storage technology. It is important to ensure that the technology used can also be integrated with the national energy system,” Fabby added.
Indonesia has enormous solar energy potential. According to an IESR report, the total solar PV development planned by the government and PLN reaches 17 GW, representing a huge opportunity to attract investment and strengthen the renewable energy sector. However, Alvin cautioned that large-scale solar PV adoption could be hampered without developing a supportive ESS.
“The development of solar energy in Indonesia requires regulatory clarity, infrastructure support, and technological innovation to optimize its utilization,” Alvin explained.
Going forward, IESR is optimistic that Indonesia can become a major player in the global energy transition with supportive policies.
“With the right steps, we can utilize the potential of solar energy and ESS to build a sustainable energy system. The year 2025 will be a key year in evaluating the effectiveness of existing policies and determining our steps forward in accelerating renewable energy penetration,” Fabby concluded. (Hartatik)
