Striving an Early Literacy on Energy Transition

South Tangerang, May 23rd, 2022 – The energy transition is a global agenda whose impact will be felt in the medium-long term. Conducting research, agreement, and policy formulation are various efforts to urge stakeholders to take action in the “present days” that are expected to have an impact on the near future. Of course, in the long term, a fair & just energy transition must be encouraged and implemented to mitigate climate change.

However, have we ever thought that in the future, who will be most affected by the implementation of the energy transition? Of course, the younger generation. Thus, it is only fair to teach them from an early age to understand the concept of the energy transition. Because, in the future, policymakers in 2060, the year Indonesia targets to achieve net-zero emissions, are currently still in school.

As a concrete effort based on this understanding, the Clean, Affordable, and Secure Energy for Southeast Asia (CASE) project in Indonesia held an activity entitled “Teaching for Future” which was held at Santa Ursula School BSD, specifically for Class IX students. In this activity, CASE seeks to instill an energy transition mindset by initiating discussions and active teaching and learning activities involving students from Santa Ursula School BSD.

This activity done by CASE is in line with the efforts of Santa Ursula BSD School in instilling understanding and education about climate change from an early age as conveyed by Mrs. Irene Rosmawati, the Principal of Santa Ursula BSD School.

“Santa Ursula School actively and systematically provides teaching and learning activities related to climate change and renewable energy issues. It is hoped that students will have an understanding as to the initial capital for their real actions in the future.”

During the Teaching for the Future activity, CASE invited George Hadi Santoso, Vice President of Xurya Daya Indonesia, a company that provides installation and procurement services for rooftop solar panel systems, to directly attend the session and discuss with students of Santa Ursula School.

“I especially appreciate Santa Ursula BSD School and CASE Project who initiated this activity in an effort to support the energy transition process in the long term. I really hope that my presence here can be an inspiration for these youngsters in choosing a career in green jobs in the future,” said George, opening the discussion session in class.

Santa Ursula BSD School is a school that has taken the initiative and is in the process of installing a rooftop Solar Power Plant (PLTS) with a capacity of at least more than 1 Megawatt peak (MWp). CASE Indonesia sees this initiative as a concrete action for schools to support the energy transition in Indonesia. In addition, CASE Indonesia hopes that this initiative can become a real example for students regarding the use of renewable energy and how non-governmental actors can play a role in supporting the energy transition. Coming from the same spirit (real action against climate change), CASE and Xurya also invite students to understand other things that can be done at their age to support the energy transition, such as energy-saving habits.

An interesting finding during the activity was conveyed by Agus Praditya Tampubolon, CASE Program Manager from IESR.

“It is very interesting how junior high school students can think further about the implementation of renewable energy, for example, we were asked about the risk of dependence on imported solar panels if Indonesia uses solar energy intensively. Findings like this, that students can think ahead and beyond, we hope, will be a good sign for Indonesia’s energy transition efforts in the future,” Agus explained at the end of the event.

C20 Indonesia Urge for a Just Energy Transition

Jakarta, 30 June 2022 – Energy transition is one of the priority issues of Indonesia’s 2022 G20 presidency. This role as the leader of the G20 countries is certainly a strategic momentum for Indonesia to show its commitment to the energy transition. The Paris Agreement in 2015 agreed to limit the earth’s temperature increase to no more than 2 degrees Celsius, even trying to keep it at the level of 1.5 degrees. For this reason, all parties must reduce their emissions from high-emission sectors such as energy and achieve carbon neutral status by the middle of this century.

To explore various perspectives on energy transition, the Civil 20 engagement group held a workshop entitled “Making a Just Energy Transition for All” inviting other engagement groups i.e: Think 20 (T20), Science 20 (S20) and Business 20 (B20). Also present as a panelist, Widhyawan Prawiraatmadja, former governor of Indonesia for OPEC.

From the ongoing discussion, all the speakers agreed to put the human aspect as the axis of the energy transition. Vivian Sunwoo Lee, International Coordinator of C20, said that C20 continues to urge the importance of immediately shifting from fossil-based energy systems to renewable energy-based energy systems.

“There are a number of risks, especially from a financial and economic perspective, from fossil energy infrastructure that has the potential to become a stranded asset if we don’t hurry to make the energy transition,” he said. Vivian also highlighted the large fossil energy subsidies that are still being provided by the G20 countries.

Professor Yunita Winarto, co-chair of Task Force 5 S20 stated the importance of an interdisciplinary approach in planning and implementing energy transitions.

“The interdisciplinary approach will shift the paradigm from exploitative-extractive to environmentally friendly-resilient, from a linear economy to a circular economy, and from good governance to proper governance. That way, a balance will undoubtedly be created according to the principles of the planet, people, & prosperity for all,” Yunita explained.

Moekti H. Soejachmoen, Lead co-chair of Task Force 3 T20, explained the importance of the carbon economic value instrument in the context of energy transition.

“The growth in energy demand will definitely continue to grow. It is inevitable, so we have to look for various ways to fulfill this energy need, but on the other hand our need to reduce emissions is also achieved. So this carbon economic value instrument is important,” explained Moekti.

Moekti also added that it was important for Indonesia to ensure that the issues pushed in this year’s G20 presidency would still be discussed in the following years. Given the energy transition is a long process and takes years.

The energy transition will completely change the face of Indonesia’s energy sector. Oki Muraza, Policy Manager of the Task Force Energy Sustainability and Climate, B20, explained that the affordability factor should be one of the main considerations in making the energy transition.

“We have to ensure that the affordability factor of energy during this transition process can be maintained. In addition, we also need to pay attention to people who are currently working in the hydrocarbon sector, how they can be trained so they don’t lose their jobs in the energy transition,” explained Oki.

Widhyawan Prawiraatmadja reminded that it is necessary to harmonize perceptions, rules and policies at the ministry level related to energy transition and the achievement of Indonesia’s commitments in the international level such as NDC. This is in addition to accelerating the achievement of national and international targets, as well as to give the same signal to investors.

“If the signals sent to investors are mixed, the perception of investors is that the risk of investing in Indonesia is high, and it is not impossible to make them reconsider investing,” said Widhyawan.

Jateng Solar Series – Green Healthcare Forum: Central Java Encourages Solar PV Adoption in Health Facilities

Jakarta, 26 April 2022- The Ministry of Health through The Directorate of Health Service Facilities, Directorate General of Health Services has issued Guidelines for Environmentally Friendly Hospitals (Green Hospitals) in Indonesia in 2018. Central Java has a high potential power output for solar energy. To that end, the development of policies, benefits, and financing schemes for rooftop solar power plants available for health facilities are discussed in the “Rooftop Solar Energy for Health Facilities Sector” Webinar. This activity was held in collaboration with the MEMR of Central Java Province and IESR which took place online.

Opening the discussion, Mustaba Ari Suryoko, Coordinator of Various NRE Services and Business Supervision, Directorate General of EBTKE, Ministry of Energy and Mineral Resources stated that Indonesia has at least 3 targets, namely 23% renewable energy in 2025, emission reduction in 2030, and net zero emission in 2060. According to him, The target for penetration of renewable energy, especially rooftop solar power plants, which is 3.6 GW until 2025 is quite high, but its implementation is still minimal. 

Several efforts have been made by the Ministry of Energy and Mineral Resources to accelerate the use of solar energy, especially in the health sector, including the issuance of the Rooftop pv Regulation to accelerate the penetration of rooftop PV, increased socialization to the health sector, such as the construction of rooftop PV at the Bali Mandara Hospital 2020, with a capacity of 100 kWp. Ari informed that currently, around 15 hospitals in Indonesia have installed rooftop solar panels.

“Low carbon development has become a global agreement, and we are part of it. The health sector has a fairly large energy demand, and there are units that have to operate 24 hours a day. For that, energy efficiency is needed, not only saving, but also producing and using energy effectively and efficiently,” said Sujarwanto Dwiatmoko, Head of MEMR of Central Java Province.

Sujarwanto said that energy audits, replacement of energy-efficient lighting systems, as well as non-stop and stop electrical operation line separation needs to be done in the hospital. To support the green hospital, hospitals can use renewable energy, one of them is rooftop solar power. According to Sujarwanto, to optimize the use of rooftop PV, it is necessary to look at the electricity usage needs, such as what tools operate during the day or night and determine which PV system (offgrid/ongrid) will be used. Supporting the energy transition, MEMR of Central Java Province will issue special awards for energy saving and green building efforts. 

Adding, Romadona, Head of the Health Facilities Facilities Team Referrals from the Directorate of Health Service Facilities said that the principles of environmentally friendly hospitals include safe buildings and guarantee patient safety, paying attention to various patient conditions (such as disabled), adapting to medical science developments, saving energy and being environmentally friendly. Romadona explained that the environmentally friendly criteria themselves are divided into two types, namely design and construction, as well as operational criteria. Unfortunately, the application of the criteria was interrupted during the pandemic. 

On the other hand, Marlistya Citraningrum, Sustainable Energy Access Program Manager, IESR mentioned several advantages of solar energy such as its abundant potential and rooftop PV technology that is easily accessible, does not require land, is easy to maintain, and the size can be adjusted to the size of the house, legally on-grid and off-grid. Marlistya said that the average return on investment for rooftop solar power plants in Indonesia for small scale is 10-12 years. 

“Roof PV can last for 25-30 years, and after that it can still be used but with a slightly decreased power,” he said.

Marlistya explained that there are several rooftop PV financing schemes such as cash purchase, installments/credit, and performance-based renting. Marlistya informed that at the Semarang City Hall, the use of Rooftop Solar Power Plants was able to reduce the bill by almost 50% from Rp 13 million to Rp 6.5 million. On the other hand, for a small house, the savings can reach 60%.

The savings in electricity costs of Rp 810 million/year, as well as very easy and minimal PV maintenance is one of the testimonials for the use of 327.6 kWp rooftop PV at Pertamina Hospital Cilacap. Muhidi, Household Sector, Pertamina Cilacap Hospital, said that the installation of rooftop PV in his hospital is an effort of efficiency and savings as well as a form of support for the government to achieve a 23% energy mix by 2025.

Also supporting the development of PV mini-grid in Indonesia, UNDP is working on the Sustainable Energy Fund (SEF) with a total incentive of rooftop PV of Rp 23 billion.

“The scheme is performance based; install it first before submitting an incentive request,” explained Verania Andria, UNDP’s Senior Advisor for Sustainable Energy.

Verania explained that the requirements for submitting incentives, namely PLN customers who have installed or are currently installing rooftop PV as of December 1, 2021, can only submit one application, does not apply to PV funded by the government through the APBN/APBD, and installation is not done alone because UNDP wants to guarantee quality. installation of installed roof PV mini-grid. In addition, capital applications can be accessed through the application and the online site https://isurya.mtre3.id. Furthermore, she stated that so far, incentives of Rp. 155 million have been distributed.

Ing. Eko Supriyanto, General Chair of the Indonesian Hospital Engineering Association who was present on the same occasion informed that green healthcare consists of various aspects; One of them is energy conservation and emission reduction. He said that digitizing hospitals was important to overcome several issues in hospitals such as building architecture, waste treatment methods, the use of energy that is not environmentally friendly, and the over-use of electrical energy. One example of digitization, explained Eko, is the Smart Integrated Electricity System, a digital system that can monitor planning and energy use in hospitals.

“The hospital is still looking at the economic side of installing rooftop solar panels. Hospitals also have service priorities that prioritize patients and health services, so the decision to use rooftop solar panels requires comprehensive consideration. With the technology and cost of rooftop PV, now is the time for hospitals to start considering installing rooftop PV” said Eko.

C20 Consultation with Other G20 Working Groups to Synergize Priority Issues

Jakarta, 25 April 2022 – The G20 Presidency this year presents a variety of themes that try to accommodate several aspirations from various working groups. One of them is from civil society or Civil of 20 (C20). C20 has formulated priority issues related to environmental issues, climate justice, sustainable finance, and energy transition. To align priority issues, the Working Group on Environment, Climate Justice and Energy Transition (ECEWG) C20 held a consultation meeting with the government working group under the sherpa-track on the energy transition (ETWG), climate sustainability (EDM-CSWG), and the sustainability finance working group (SFWG).

Deputy for Coordination of International Economic Cooperation, Coordinating Ministry for Economic Affairs, Edi Prio Priambudi, said that currently not only solving the pandemic, but at this time Indonesia also received additional mandates both in the G20 Presidency and acted as Co-Chair at the UN Global Crisis Response Group (GCRG).

“Homework and challenges also increase, especially for mitigating three global crises, namely food security, energy transition, and facing fiscal constraints,” he said.

Edi relates this to the right of every citizen, as regulated in Article 28H of Law, to obtain a clean environment and live a healthy life. According to him, this opportunity should be used to fulfill joint obligations and protect the environment. He hopes that Indonesia can collaborate in finding ways to apply best practices to concrete results.

Fabby Tumiwa, Co-Chair of C20 and Executive Director of IESR, said that C20 is currently gathering aspirations from its members to promote a just energy transition.

“Currently, C20 consists of 177 institutions consisting of 35 countries, and from this workshop, all parties will be informed of the process and results of discussions with G20 members and align them with priority issues. In addition, of course, the planning of C20 activities will ensure a people-at-center approach and a fair and inclusive transition,” said Fabby.

Supporting Fabby’s statement, Lisa Wijayani explained the activities carried out by ECEWG since January 2022, including engagement group discussions, global-networking events, capacity building, and plans for webinars related to the findings of the Intergovernmental Panel on Climate Change (IPCC).

“The priority issues that are of concern to the members are climate justice (inclusive adaptation and mitigation, clean energy inclusiveness, transitional justice); environment (ecosystem restoration, marine biodiversity, plastic waste); and the energy transition (coal as stranded assets, sustainable finance, green jobs),” she added.

Meanwhile, Prahoro Yulianto Nurtjahjo, Head of the Human Resources Development Agency, Ministry of Energy and Mineral Resources (ESDM), explained the results of the first ETWG meeting last March. He explained that the priority issues discussed and agreed upon were the three pillars of energy transition: securing energy accessibility, improving clean and innovative energy technology, and advancing energy financing.

“Furthermore, at ETWG-2, a series of webinars will be held to prepare the communique draft and building blocks,” he said.

On the other hand, the climate delegates of the EDM-CSWG have discussed priority issues, namely land restoration, actions to conserve the ocean, and resource mobilization in support of environmental and climate protection goals.

“The results of several meetings show that developing countries emphasize adaptation as important as mitigation and the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR_RC). However, it is equally important that financial mobilization and participation from the private sector and partnerships also need to be strengthened,” said Emma Rachmawati, a representative from EDM-CSWG and the Ministry of Environment and Forestry (KLHK).

Meanwhile, to support funding related to climate policy, the Center for Climate Change Financing Policy and Multilateral Fiscal Policy Agency of the Ministry of Finance, Dalyono, through the SFWG, is currently preparing a roadmap for sustainable finance.

“We are also currently compiling three workstreams, including reporting on the progress of the sustainable finance roadmap, increasing the credibility of financial institutions, and improving financial instruments that are more accessible and affordable.”

The joint discussion with this working group agreed that the implementation of the Indonesian G20 Presidency is expected to be not only a narrative or written agreement and concrete and provide tangible and inclusive benefits, not only for Indonesia but also for the world.

Welcoming the Gigawatt Order of Solar Energy with Readiness of Qualified Human Resources

Jakarta, 20 April 2022– One of the essential things in building a solar PV ecosystem in Indonesia is the readiness of its human resources. Measuring Indonesia’s readiness to enter the gigawatt order, the Institute for Essential Services Reform (IESR) in collaboration with the Ministry of Energy and Mineral Resources (ESDM) held a webinar entitled “Solar Energy Gigawatt Order, Is Indonesia Ready?” in the Indonesia Solar Summit 2022.

The General National Energy Plan (RUEN) targets a solar PV capacity of 6.5 GW in 2025. It opens up opportunities for high solar PV demand. RUEN also mandates the use of solar cells at a minimum of 30 percent of the roof area of ​​all government buildings, and 25 percent of the roof area of ​​luxury houses.

Anthony Utomo, Deputy Chairperson of the Indonesian Solar Energy Association (AESI), views that this opportunity needs to be met with the availability of local workers to provide, install, maintain and maintain solar PV. 

“AESI in the solarpreneur program collaborates with universities so that training (related to rooftop solar PV) is available to the community, the installation can be served properly, and in the end it can create new jobs,” explained Anthony.

Ratna Muntiowati, Marketing Director, TotalEnergies Renewables DG emphasized that seeing the development of solar PV getting more and more widespread in Southeast Asia, therefore, in the near future, the solar PV market will not only be in Indonesia. Moreover, she stated that the curriculum of renewable energy should be applied in all science majors.

“Tantangan yang kita hadapi dalam instalasi di atas bangunan ialah struktur bangunan tidak terlalu kuat. Hal ini bisa juga dimasukkan ke dalam kurikulum pendidikan.Bahkan saat ini, Standar Nasional Indonesia (SNI) untuk civil construction, sudah memasukkan ketentuan untuk instalasi solar panel. Ini yang bisa diimplementasikan oleh lembaga pendidikan. Sehingga saat ada instalasi atau desain pabrik baru (untuk PLTS atap), sudah diperhitungkan sesuai SNI,”ujarnya.

Daniel Pianka, Universitas Kristen Immanuel (UNKRIM), Yogyakarta sepakat bahwa pelatihan dan edukasi energi terbarukan memainkan peran penting dalam membangun SDM yang berkualitas. Berdasarkan pembelajaran dari pemasangan 10 kWp panel surya di universitasnya, Daniel mengungkapkan bahwa kemampuan SDM yang mumpuni dalam melakukan instalasi panel surya turut menentukan keawetan sistem panel surya yang digunakan.

“Instalasi yang belum baik misalnya menyambungkan kabel hanya dengan isolasi (perekat) akan membuat kabel mudah terbakar jika ada daya yang tinggi. Instalasi yang berkualitas akan membuat sistem surya panel bisa digunakan lebih lama,” tuturnya.

Lebih lanjut, Daniel menjelaskan UKRIM telah membangun program energi. Program ini bertujuan untuk melatih mahasiswa, yang dominan berasal dari daerah 3T (Terdepan, Terpencil dan Tertinggal) untuk menjadi teknisi, melakukan instalasi yang rumit dan merawat PLTS.

“Program ini diharapkan mampu menghasilkan SDM yang terlatih dan termotivasi untuk terjun dalam sektor energi terbarukan, menciptakan banyak proyek energi berkelanjutan, gaya hidup yang lebih baik dan emisi karbon yang rendah,” tukasnya.

Di sisi lain, Eng Purnomo Sejati, Kepala SMK Ora et Labora, BSD menuturkan pihaknya senantiasa beradaptasi terhadap dinamika sektor energi di Indonesia. Semula, sekolahnya dirancang untuk memenuhi kebutuhan SDM pembangunan PLTU 35 GW. Namun, penyesuaian target baru terkait energi terbarukan maupun rencana moratorium PLTU, mendorong lembaga pendidikan yang ia pimpin bertransformasi menuju energi terbarukan.

“Sejak tahun lalu, kami bermanuver untuk membuka area lain seperti energi terbarukan dan surya. Kami sudah melakukan penetrasi dan bermitra dengan perusahaan terkait. Kami juga ingin mengembangkan kendaraan listrik, industrial internet of things (IIOT), dan perawatan gedung dan fasilitas. Bidang ini kami lihat yang akan sustain ke depan,” papar Purnomo.***

“The challenge we often face is the improper rooftop structure that is weak for solar PV installation. This issue can also be included in the education curriculum. Now, the Indonesian National Standard (SNI) for civil construction has included provisions for the installation of solar panels. Educational institutions can take this opportunity to implement. So when there is an installation or a new factory design (for rooftop solar PV), it has been calculated according to SNI,” she said.

Daniel Pianka, Immanuel Christian University (UNKRIM), Yogyakarta agreed that training and education on renewable energy play a significant role in shaping the quality of human resources. Based on lessons learned from the installation of 10 kWp solar panels at his university, Daniel revealed that the ability of qualified human resources to install solar panels also determines the durability of the solar panel system used.

“Improper installation, for example connecting cables only with adhesive tape will lead to burning cable, as comes the high power. A quality installation will make the solar panel system last longer, “he said.

Furthermore, Daniel explained that UKRIM had built an energy program. This program aims to train students, who predominantly come from 3T areas (frontier, remote, and left behind area) to become technicians, perform complex installations and maintain solar PV.

“This program is expected to produce trained and motivated human resources to engage in the renewable energy sector, creating many sustainable energy projects, better lifestyles, and low carbon emissions,” he said.

On the other hand, Eng Purnomo Sejati, Principal of Ora et Labora Vocational School, BSD said that his party always adapts to the dynamics of the energy sector in Indonesia. Initially, the school was designed to meet the human resource needs of the 35 GW coal-fired power plants construction. However, the adjustment of new targets related to renewable energy, as well as, the plan for a PLTU moratorium, has encouraged the educational institutions he leads to transform into renewable energy.

“Since last year, we have maneuvered to open up other areas such as renewable energy and solar. We have penetrated and partnered with related companies. We also want to develop electric vehicles, industrial internet of things (IIOT), and maintenance of buildings and facilities. We look at this field that will be sustainable in the future, “said Purnomo.

The Russia-Ukraine Conflict and Its Impact on Indonesia’s Energy Sector

Jakarta, April 14, 2022 – The military conflict involving Russia and Ukraine is still ongoing. A number of direct and indirect impacts have begun to be felt by a number of countries, especially European countries because Russia is one of the main suppliers of gas and oil for a number of European countries.

Russia’s political attitude which continues to carry out military action has put the ‘customers’ of Russian oil and gas in a dilemma. If they continue to buy oil and gas from Russia, they are indirectly contributing to the financing of the war. If they don’t buy the oil and gas, their energy security is threatened. Gas and oil currently available have also increased in price, which means higher costs.

Will the Russia-Ukraine war situation have an impact on Indonesia? The Clean, Affordable, and Secure Energy for Southeast Asia (CASE) project held a public discussion entitled “The Geopolitics of Energy Transition” to examine the impact of the Russia-Ukraine war on the global energy system and lessons learned for Indonesia’s energy transition.

Fabian Hein, analyst of energy statistics and scenarios, Agora Energiewende explained that currently European Union countries such as Germany, are trying to reduce dependency on fossil energy, especially gas.

“There are two approaches to dealing with this crisis. The first is a short-term approach by replacing gas with coal and oil. Second is a long-term strategic plan by increasing the capacity of renewable energy in the energy system,” Fabian explained.

Dependence on fossil energy does not only occur in Germany, or the European Union countries. Indonesia also has a large dependence on fossil energy for both electricity generation and fuel for the transportation sector.

Widhyawan Prawiraatmadja, a lecturer at SBM ITB, warned Indonesia to be careful in viewing and responding to this geopolitical issue.

“The issue of the current energy crisis is not only an imbalance between supply-demand, but there are other factors, namely war, so that energy commodity prices fluctuate and in the Indonesian context the government is in a difficult choice between providing more subsidies or increasing energy prices such as fuel,” Widhyawan explained. .

The choice of the Indonesian government to maintain the share of fossil energy and even provide subsidies through various policies is increasingly irrelevant in these times. The Executive Director of the Institute for Essential Services Reform, Fabby Tumiwa, stated that the lesson that can be drawn from the impact of the Russia-Ukraine conflict mainly on European countries is that dependence on one commodity is a threat to the energy security of a region.

“The IEA also criticized that European countries failed to implement the first principle of energy security, namely supply variation. Apart from depending on one type of commodity, Europe is also very dependent on one country as a supplier, this is vulnerable to the security of energy supply there,” he said.

Fabby continued, that the Russia-Ukraine conflict had a significant global impact on energy development. Renewable energy is more resilient in terms of price and supply due to its local nature. So developing renewable energy in Indonesia is increasingly becoming a necessity in the future to ensure energy security.

Solar Power Plants Technology is Increasingly Advanced and Competitive to Drive Indonesia’s Use of Solar Energy

Jakarta, 21 April 2022 – The Indonesian government has set a national strategic project to install 3.6 GW of rooftop solar power plants by 2025 to achieve the renewable energy mix target of 23%. The availability of solar power plants or pembangkit listrik tenaga surya (PLTS) technology, affordable solar power plant financing mechanisms, and the development of rooftop solar power plants, floating solar power plants, and large-scale solar power plants will support the achievement of these targets.

The average selling price of solar modules has decreased significantly from around US$ 4.12/W in 2008 to US$ 0.17/W in 2020. The International Energy Agency reports that solar power plants are currently the cheapest source of electricity in most countries. Even in Indonesia, the results of solar power plants auctions in For example, in Indonesia, the last solar power plants auction results resulted in electricity costs of USD 0.04/kWh, lower than the average coal power plant, which costs USD 0.05-0.07/kWh.

IESR, in collaboration with CASE, GIZ, and the Ministry of National Development Planning/Bappenas, held a Solar Energy Technologies workshop attended by several experts, namely Professor Martin Green, Scientia Professor at the University of New South Wales, Sydney, and Director of the Australian Center for Advanced Photovoltaics; Noor Titan Putri Hartono, Postdoctoral Researcher at Helmholtz-Zentrum Berlin Department of Active Materials and Stable Perovskite Solar; Beny Adi Purwanto Representative from the Directorate General of Metal, Machinery, Transportation Equipment and Electronics Industry, Ministry of Industry of the Republic of Indonesia; and Jen Tan, CEO of Sembcorp Energy for Indonesia.

Accelerating climate crisis mitigation actions is very important for sustainable energy development. Prof. Martin-Green explained that the choice of renewable energy technology, especially solar energy, is available to be developed to achieve Indonesia’s decarbonization.

“Solar cell technology is developing very rapidly. So if we want to start building solar power plant component factories, there are recommendations for solar cell technology according to the industry in Indonesia. However, the main challenge is choosing where the solar power plants will be installed, which requires high radiation to be absorbed by the solar panels,” said Martin.

In addition to silicon as one of the main materials for solar cells, Perovskite Solar Cells (PSC) is a promising choice for PV mini-grid technology. Noor Titana revealed that as the second-largest tin producer, Indonesia has the opportunity to develop Perovskite Solar Cells (PSC). PSCs have high energy absorption efficiency above 20%, for example, Perovskite, CIGS, and CdTe. Interest in using PSCs continues to grow due to their more competitive nature and costs. Techno-economic analysis in 2017 showed that PSC is cheaper, assuming the same degradation rate as crystalline silicon with a lifespan of up to 20-25 years.

Noor said some of the challenges faced in the development of PSCs.

“Some of the challenges to realizing PSCs are that perovskite is unstable and has a short lifespan compared to silicon. In addition, high-performance PSCs contain toxic and water-soluble wastes. However, as the 2nd largest tin producer, Indonesia still has the opportunity to develop PSC in the future,” Noor added.

In addition to technology, affordable PV mini-grid financing mechanisms are also developing. However, limited financing options often hinder public interest in installing rooftop solar power plants. Various parties are trying to provide access to communal solar power plant funding to overcome this.

“The trend in solar modules is also the most widely used domestically with a capacity below 450 Wp. On the other hand, solar power plants require solar modules above 500 Wp with higher efficiency solar cells (M6 type solar cells). The production of solar modules with capacities above 500 Wp requires the most up-to-date equipment, so incentives and market guarantees are needed for investment. In the short term, solar module capacity below 450 Wp will be maximized for small-scale solar power plants projects (de-dieselization) and rooftop solar power plants,” said Beny Adi Purwanto, Representative from the Indonesian Ministry of Industry.

In addition to rooftop PV mini-grid, Indonesia needs the development of large-scale PV mini-grid or floating PV mini-grid to achieve the renewable energy mix target by 2025. Furthermore, solar energy investment opportunities at various scales need to encourage more competitive PV mini-grid and improvements in financing quality. Technological innovations also continue to enable PV mini-grid to produce higher energy efficiency. Jen Tan stated this.

“For future sustainability, several important factors need to be considered when installing large-scale solar power plants. One of them is that we must care about the environment because solar power plants could be placed in solar fields or local water catchment areas filled with flora and fauna. In managing large-scale PV mini-grid, tools are also needed for the monitoring process, one of which is related to data acquisition. An incumbent metering service is required through an application programming interface (API) that includes map navigation, global asset display, alarm aggregation, and sustainability statistics,” said Jen Tan.***

Showing Leadership in G20, Indonesia Needs to Increase Solar PV Development

JAKARTA, 20 April 2022 – Carrying the energy transition as the main topic of Indonesia’s presidency at the G20, Indonesia needs to show its leadership in pursuing a more massive renewable energy capacity, especially solar energy. Indonesia can also learn from the experiences of the G20 countries in encouraging the growth of solar energy and accelerating the spread of solar energy.

The Ministry of Energy and Mineral Resources of the Republic of Indonesia and the Institute of Essential Services Reform (IESR), in collaboration with BloombergNEF and the International Solar Alliance (ISA), held a workshop to take lessons from G20 countries in encouraging the application of solar power relevant to developing countries. The workshops were also not limited to policy frameworks, fiscal and financial instruments, market readiness, and human resource development.

Ali Izadi – Najafabadi, Head of Research APAC, BloombergNEF, expressed his optimism that Indonesia has the potential to accelerate the energy transition.

“Some analysts say Indonesia lags behind other G20 countries in renewable energy, especially solar power, but I believe Indonesia can catch up. Indonesia has many opportunities to reform policies or special regulatory measures focusing on improving the energy economy and the environment,” said Ali.

In line with Ali, Rohit Garde, Senior Associate for Solar Energy Financing at BloombergNEF, said that BloombergNEF measures state policies in the electricity sector and carbon policies. For example, Germany and England have 84% and 83%, respectively, which indicates that both countries have good procedures for PV mini-grid. Meanwhile, the Levelized Cost of Electricity (LCOE) of PV mini-grid in India, China, UAE, and Chile is the lowest due to high levels of solar radiation and large-scale PV mini-grid development. Meanwhile, the LCOE of PV mini-grid in Indonesia is the highest due to its small scale and high cost of capital.

“Indonesia must increase its ambitions by revising regulations and removing development barriers,” added Rohit Garde.

One of the important issues in Indonesia’s leadership in the G20 is the energy transition. Yudo Dwinanda Priadi, Expert Staff to the Minister for Strategic Planning at the Ministry of Energy and Mineral Resources, said that the power plant plan already has an Electric Power Supply Business Plan Electricity Supply Business Plan (RUPTL) 2021-2030. A greener RUPTL is a cornerstone of achieving zero carbon by 2060.

“Solar Power Plants (PLTS) have the largest optimization in Indonesia and will reach 4,680 MW by 2030. Therefore, solar energy has the most abundant potential. In addition, the cost continues to decline, and the rapid development of PV mini-grid technology has made solar power generation a priority. The development of rooftop PV mini-grid also includes better implementation and incentives for people who want to install rooftop PV mini-grid. The government has issued the Minister of Energy and Mineral Resources No.26/2021, and the rooftop PV roadmap is in the process as a National Strategic Program (PSN),” said Yudo.

On the other hand, Fabby Tumiwa, Executive Director of IESR and General Chair of the Indonesian Solar Energy Association (AESI), said solar energy development in Indonesia is relatively slow with several obstacles.

“In 2021, only 0.001 percent of its technical potential will be implemented. However, rooftop solar power generation has continued to increase in the last three years, and that is due to the support from government regulations. RUPTL 2021 is a signal to increase five times to 4.7 MW, and there are also other projects such as exports to Singapore, Riau Islands, and Batam. Therefore, this project has the potential for massive solar energy development,” said Fabby Tumiwa.

Fabby also added several reasons for the obstacles to the energy transition in Indonesia, such as the Domestic Component Level (TKDN).

“Problems in project development such as land and regulations on the Domestic Component Level (TKDN); existing projects require solar module devices from 40% to 60%, and this has not been met by industry in Indonesia and has not received financial assistance from the state; negotiations are quite long while other countries tend to be faster. The Vietnamese government has strong political will and commitment, regulation, implementation, and incentives for tariff policies related to net metering. What is also important is the policy certainty and transmission of the State Electricity Company (PLN),” said Fabby.

Kanaka Arifcandang Winoto, the Senior Business Developer from Mainstream Renewable Power, explained how Indonesia needs to accelerate to meet the renewable energy mix target of 23% in 2025.

“Indonesia is the largest energy consumer in ASEAN, accounting for almost 40 percent of ASEAN’s total energy use. With the significant potential of solar, geothermal, wind and hydropower resources, Indonesia is well-positioned to develop in a low-carbon energy system,” he said.

According to Kanaka, Indonesia is a key player in achieving 1.5℃, so cooperation with all stakeholders is needed to identify a national roadmap for realizing economic growth and climate security.

Dyah Roro Esti, Member of the DPR, Commission VII, explained that his party is open to public input, especially on renewable energy policies that are being discussed in the DPR RI.

 “Data from DEN, Indonesia must optimize 2.5 GW, and each area has potential, both solar and wind. Therefore, it is necessary to have the motivation and political will to cooperate with local governments in optimizing and realizing this potential. The House of Representatives (DPR) is working on the New Renewable Energy (EBT) Bill and will be open to suggestions. However, the EBT Bill (RUU) is still under discussion,” explained Dyah Roro.

On the other hand, regarding policies at the regional level, Ngurah Pasek, Head of the Sub-Division of Environment and Regional Development, Bappedalitbang Bali Province, added that Bali has implemented Perda 29 of 2020 concerning the General Plan of Regional Energy (RUED) whose derivative is Pergub 45 of 2019 about Bali Clean Energy.

“Installation to regencies and cities in Bali Province, which currently has reached 8.5 MW. The target of the Bali Provincial Government regarding budget refocusing is how the installation of solar rooftop solar panels in offices or companies can run well,” he said.

The development of rooftop solar power plants is also happening in Central Java. Nathan Setyawan, Sub-Coordinator of Natural Resources and Environment, Central Java Regional Development Planning Agency, explained some progress in supporting renewable energy in his area.

“Central Java is the only province that has developed and integrated economic recovery and the use of renewable energy. In 2021, we will encourage not only provincial governments but also regents and mayors and the private sector to implement rooftop solar power plants.”

He emphasized that increasing public awareness and support from the Ministry of Energy and Mineral Resources would encourage the use of communal solar power plants in remote areas. In addition, Nathan hopes that the availability of affordable clean energy supporting technology will help develop the local renewable energy industry.

“Hopefully, there will be a mini silicon valley to develop new renewable energy-oriented industries,” he added.***

Looking for Funding Schemes and Readiness of Solar PV Project Development

Workshop Financing Solar Energy - Indonesia Solar Summit

Jakarta, 20 April 2022– The issue of financing is still one of the big obstacles in developing renewable energy such as rooftop solar power plants in Indonesia. There is a large gap between the government’s agenda to accelerate solar penetration and access to funding for both developer and household projects. Difficult access to funding can also be a challenge for the development of solar energy in Indonesia.

Enthusiasm to develop solar energy is growing rapidly in Indonesia. At the Indonesia Solar Summit 2022, at least 31 parties are committed to installing solar PV with a capacity of up to 2,300 MW. The availability of cheap financing mechanisms can support the achievement of these commitments.

Elvi Nasution, Director of Solutions Initiatives, explained that there is one financing scheme that is not widely available, namely project financing. Project financing is limited financing of a new project that will be carried out through the establishment of a new company (separate from the existing company). The project finance provider can be a bank or a special financial institution (special mission vehicle).

“Compared to Malaysia, Thailand and the Philippines, project financing in Indonesia is relatively expensive. The contributing factors include government guarantees, the amount of debt, and the structure of the electricity business which is currently monopolized by PLN, so developers often encounter difficulties because there is only one offtaker in Indonesia,” explained Elvi.

Jagjeet Shareen, Assistant Director of General International Solar Alliance, in the same forum saw the importance of the role of financial institutions such as banks to participate in accelerating solar penetration.

“Providing training to bank employees is important to make them understand the character of solar business and calculate the financing risk for it. The cost of installing solar PV  may still be relatively expensive, but it’s actually not that expensive because the cost of solar continues to decline,” he said.

Jagjeet shared India’s experience in providing massive training to bank employees which had a significant impact because the bank then became more familiar with PV rooftop projects, their risks and development opportunities.

Both Elvi and Jagjeet agreed that in order to accelerate the penetration of PV rooftop, synergies from various parties, such as financial institutions, need to study the financing structure based on the conditions and potential in each location.

PLN as the single offtaker in Indonesia also needs to transform its business model so that it is relevant to the current situation and in the future where renewable energy will have a larger portion. Especially for solar development, PLN needs to make regular auction plans and finalize the development plan (pipeline). Good and clear project planning will increase the confidence of investors and financial institutions to fund a PV rooftop project for instance.

Prospective users of rooftop solar power plants are more or less aware of the situation of developing solar energy in Indonesia, which still needs a lot of improvement. Erwin Kasim, one of the participants of the Financing Solar Energy Indonesia Solar Summit 2022 workshop, asked about the minimum subsidy for initial installation costs for households who want to install rooftop PV and what schemes can be considered to relieve potential PV rooftop customers.

The bank, as the party that is expected to provide a solution to this initial cost problem, emphasizes the government’s role in making policies that are friendly to all parties in the development of this rooftop solar power plant.

“The use of solar requires government intervention to create financing schemes, protect banks from repayment failures, and incentives for customers,” said a representative of Bank Rakyat Indonesia (BRI) who attended the same forum.

The government’s role in issuing a customer-friendly rooftop PV  financing policy is highly expected. Because at this time, financing through the bank occurs because of a business-to-business agreement between the developer and the bank without any special policy from the government that regulates the financing of rooftop solar power plants by the bank.