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Bali can lead as the clean energy province, the island owned enormous potential for technical and market of solar PV

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Denpasar, 9 June 2021 – With the technical potential of 26.4 GWp (IESR, 2021), Bali can rely on solar energy to realize the vision of “Nangun Sat Kerthi Loka Bali” in its energy system, one of which is by encouraging the community involvement in invest in PV mini-grid. This became an interesting discussion at the seminar “Bali Towards a Clean Energy Province” organized by the Institute for Essential Services Reform (IESR), in collaboration with the Indonesian Solar Energy Association (AESI), and the Amoghasiddhi Union, Bali. 

Ida Bagus Setiawan, Head of Energy and Mineral Resources, Department of Manpower and Energy and Mineral Resources – Bali Province said that in terms of potential and track record of technology, rooftop solar is the best renewable energy to be developed in Bali. The local government of Bali has issued government regulation no 45 of 2019 concerning Bali Clean Energy, one of which regulates the adoption of rooftop solar power plants on buildings with a certain area, both public and private buildings.

“The target of rooftop solar in 2021 is 0.5 MWp and 7.5 MWp in 2025. This target is realistic and may be higher in accomplishment if more support is available from the central, regional, and community,” he added.

Chrisnawan Anditya, Director of Various New & Renewable Energy, DJBTKE, who came online on the same occasion promised positive support from the Ministry of Energy and Mineral Resources so that the adoption of rooftop solar power plants would be even more massive.

“Currently, the Ministry of Energy and Mineral Resources is finalizing the revision of the MEMR regulation no. 49 of 2018. Some improvements are made in important points, such as greater exporting provisions than 65%, excess accumulation, and extending invoices from the original 3 months, application-based service mechanisms, shorter application times, and expansion to customers in non-PLN business areas (now only 34 out of 53 regions), as well as coaching and supervision. One of the things that we encourage is performance standards and safety aspects regarding the provisions for installing Indonesia National Standard (Standard Nasional Indonesia-SNI) rooftop solar in the Minister of Energy and Mineral Resources No. 2 in 2021,” said Chrisnawan.

Furthermore, Chrisnawan said that until March 2021, as many as 3,472 customers had installed rooftop solar power plants with a capacity of 26.51 MWp. He said that Bali is in the top 10 (ten) with 141 customers with a capacity of 1.07 MW, where customers are dominated by households but the portion from the industrial sector has a larger capacity.

Stressing about community involvement in supporting the development of rooftop PV mini-grid, Fabby Tumiwa, Chairman of the Indonesian Solar Energy Association (AESI), and also the Executive Director of IESR, revealed that the availability of information regarding the procedures and licensing of rooftop PV mini-grid, as well as easy access to this information, will help the public make investment decisions solar rooftop.

“AESI encourages the creation of a good ecosystem for PV mini-grid, by ensuring a credible Engineering-Procurement-Construction or EPC, having good standards, skilled workforce, and clear financing schemes,” explained Fabby.

Fabby said that the market potential for rooftop solar PV in Bali is large, essentially because Balinese people have realized the importance of respecting nature therefore, the use of renewable energy such as solar rooftop will make the spirit of environmental protection even higher.

In particular, IESR has surveyed household perceptions, the commercial sector, and MSMEs in Bali (2020) and found that the highest reason for respondents’ interest in the concept of PV mini-grid, apart from caring for the environment, was the electricity savings of 51.9%.

“The market potential in the household sector reaches 23 percent, or equivalent to 256,000 households. Huge potential also exists in the business sector, around 35,000 businesses and SMEs and even reaching 71,000 SMEs. This amount is also an opportunity for the government to see that the community’s contribution will be very significant to encourage the achievement of emission reductions and Bali’s goal of 100 percent renewable energy,” said Marlistya Citraningrum, IESR Energy Access Program Manager.

Ida Ayu Maharatni, Manager of the Amoghasiddhi Union, admits that the electricity cost savings have been drastically reduced since the cooperative installed rooftop solar panels.

“During the pandemic, electricity demand rose while financial conditions were difficult, but this was greatly helped by the initial solar rooftop’s investment. We spend electricity equal to zero in 6 months,” she said excitedly.

Answering the cost of PV mini-grid investment which is often considered by the community before installing rooftop PV mini-grid, her party provides energy credit at the Amoghasiddhi Union called SvarnaSiddhi. This loan is included in the investment credit scheme, so the interest rate is relatively reduced by 2% and can be repaid at any time.

“With the installment scheme, our cooperative reduces the tenor of rooftop solar to a maximum of 3 years of financing,” explained Ida Ayu Maharatni.

Agung Prianta, Green Building Council Indonesia (GBCI), Bali, added that the results of a survey conducted by GBCI showed, as many as 87% of the people wanted to be given credit with monthly installments below Rp 500,000 thousand.

The expansion of the rooftop solar PV market will create more job opportunities in the rooftop solar PV sector. Anthony Utomo, Deputy Chairperson of the Indonesian Solar Energy Association, explained that one of AESI’s missions is to produce 1,000 Solarpreneurs, also known as reliable energy SMEs. The program will guarantee the standard of solar PV quality and installations. 

“The market potential for rooftop solar is around 1.5 million users with a market potential value of more than 67 trillion. The RUEN target of 6.5 GW can absorb 812,500 to 1,500,000 workers. The market is large and easy to replicate. This effort will also create Indonesia as a Solar Power House,” added Anthony.

Watch their discussion on this video-on-demand:

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