Webinar: Floating Solar Realizes Transition for Indonesia: Economics and Reliability of Floating Solar Power Plants and Energy Storage Systems

Background

In the Enhanced Nationally Determined Contribution (ENDC), Indonesia is committed to reducing greenhouse gas emissions in the energy sector by 358 million tons of CO2eq with its own efforts by 2030. In line with these efforts, at CoP26, the Indonesian government targeted the energy sector to achieve Net Zero Emission (NZE) by 2060 or sooner. To fulfill the global commitment in efforts to reduce emissions in the energy sector, the Indonesian government has taken a concrete step by issuing the National Electricity General Plan (RUKN) 2025-2060 which explains the roadmap for the government’s plan to achieve NZE by 2060. It is stated in the RUKN that the government projects a total installed power generation capacity of 443 GW by 2060, with the portion of Variable Renewable Energy (VRE) reaching 41.6%.

To achieve this target, one of the decarbonization strategies in the electricity subsector is focused on increasing the penetration of Solar Power Plants (PLTS). In 2030, the installed capacity of PLTS is targeted to reach 100 GW, consisting of 80 GW from utility-scale PLTS and 20 GW from rooftop PLTS. However, the development of utility-scale PLTS installed on the ground (ground-mounted) faces technical and spatial challenges, especially related to land limitations. In recent years, floating photovoltaic (FPV) technology or floating PLTS has developed as an innovative solution to address this challenge. Floating PLTS can be implemented by utilizing the surface of reservoirs, lakes, and artificial waters as locations for installing solar panels.

The Ministry of Energy and Mineral Resources (ESDM) noted that the technical potential of floating PLTS in all reservoirs and dams in Indonesia reaches around 14 GW. The implementation of this technology has begun with the operation of the Cirata Floating Solar Power Plant with a capacity of 145 Megawatt peak (MWp) in 2024, which is currently the largest floating solar power plant in Southeast Asia. This success is proof that floating solar power plants can be implemented in real terms on a utility scale in Indonesia.

However, like other solar power generation systems, floating solar power plants also face the challenge of intermittency. To overcome this challenge, the integration of floating solar power plants and energy storage systems is a promising solution and high scalability in supporting the transition to a low-carbon energy system in Indonesia. When combined with an energy storage system, floating solar power plants are not only able to reduce power fluctuations (intermittency), but also function as dispatchable generators. This combination allows for peak shaving, delaying large investments in expanding network infrastructure, and replacing fossil-based generators used for baseload needs. Furthermore, the approach of floating solar power plants integrated with energy storage systems opens up opportunities for an Indonesian electricity system that is completely free from dependence on fossil fuels.

Often considered to require high investment costs, IESR believes that when compared fairly, especially with steam-fired power plants (PLTU) without subsidy schemes such as the Domestic Market Obligation (DMO), the combination of Floating Solar Power Plants and energy storage can actually be a more economical option in the long term. For this reason, IESR is holding a webinar “Floating Solar Realizes Transition for Indonesia: Economics and Reliability of Floating Solar Power Plants and Energy Storage Systems” as a discussion space to further discuss the implementation of this technology in terms of economics and system reliability.

Objectives

This event is held with the aim of:

1. Presenting the economic development of Floating Solar Power Plants integrated with energy storage systems, compared to the economics of fossil-based power plants.
2. Explore the reliability of the Floating Solar Power Plant system integrated with energy storage systems in maintaining the stability and flexibility of the national electricity grid.