Jakarta, September 16, 2020 – Since the 2000s, the Indian government has shown its seriousness in developing renewable energy to meet domestic energy needs. Determined, the Indian government is ambitiously targeting the development of the renewable energy plant of 200 GW or 42 percent of total electricity generation by 2022.

The Indian government has been formulating an ecosystem to support the achievement of renewable energy targets in its policies and programs, such as the development of solar parks and solar cities. As a result, India began to show its position as a country that only had 10 MW of solar power plants in 2010, now reaching 88 GW in 2020.

Indian government’s achievement in accelerating renewable energy is something worthies that the Indonesian government should follow. To more understand the successful recipe of solar power plant development in India, the Institute for Essential Services Reform (IESR) conducted an online seminar entitled Bringing Indonesia to the Gigawatt Club: India Made It, and So Can We. This seminar brought together solar energy industry professionals from India to share their experiences and lessons learned. Kanika Chawla, Director of the Center for Energy Finance CEEW, India, and Kushagra Nardan, Co-Founder & President of SunSource Energy, India, were the speakers, meanwhile, as the responders were Harris Yahya as Director of Various New and Renewable Energy, Ministry of Energy and Mineral Resources, Cita Dewi, EVP of Renewable Energy at the State Electricity Company (PLN), Yohanes Bambang Sumaryo, Indonesian Solar Energy Association (Asosiasi Energi Solar Indonesia – AESI), and Fabby Tumiwa, Executive Director of IESR.

Kanika explained that one of the best practices of the Indian government is to establish a renewable energy market by profiling in detail its long-term targets. It has attracted many investors, both domestic and international, to participate because they can project their industries in the next five or ten years. Moreover, many investors are interested in involving, making price negotiations more competitive and cheaper.

“Solar and wind tariffs have seen an aggressive decline around the world but also in India more specifically, and more steeply, I would say it is very much based on the large market, the market design. If at first India was a price taker, now it is a price maker,” she said.

However, Kanika explains that along the way, the market identified various risks, such as the offtake risk (payment delays), curtailment risks where the grid unable to absorb the amount of energy produced, foreign currency exchange, land acquisition, and construction, and policies inconsistencies or changes in in-laws.

Kushagra added that the Indian government mitigated these risks by implementing clear and consistent policies, both in terms of the scale of utility to net metering. Responding to the conducive environment of renewable energy in India, his company has installed rooftop solar power plants in commercial buildings such as 10 MW in textile factories in northern India, floating solar in the oil company, and rooftop solar project at the Airport in New Delhi.

Furthermore, Kushagra also shared several steps that the Indian government has taken to realize the target of renewable energy development, for example, the existence of a specialized government body to achieve the National Solar Mission with Solar Energy Corporation Of India Limited (SECI) at the national level and various agencies at the state level.

Reviewing again, Fabby Tumiwa emphasized some important notes that deserve the attention of the Indonesian government to achieve the renewable energy mix target of 23 percent with 6.5 GW coming from solar power plants by 2025.

“Indonesia needs the support of legislation and regulations in implementing renewable energy targets into more concrete programs and projects. As in India, with its Renewable Purchase Obligation (RPO) stipulated in the Act, each state is required to set renewable energy targets as a priority to be achieved. Besides, the Indian government provides supporting funding through the National Clean Energy and Environmental Fund (NCEEF) and financial assistance to project developers and optimization of public funds. Also, they create various schemes for on-grid and off-grid solar. The bidding process has also become more competitive in the format of a large-scale reverse auction, which is effective and can attract low solar price bids,” he emphasized.

The procurement process in the form of a reverse auction that is well designed, carried out efficiently and transparently, and on a large scale is one of the supporting factors in driving the competitiveness of solar power generation and results in a much lower generation price compared to fossil energy. Also, Fabby explained that the role of state governments in India is essential in the acquisition of land for the solar park scheme. The Indian government is acting directly to provide the area and build complementary infrastructure. In Indonesia, the provision of land is often constrained by permits and inadequate location, which then causes land acquisition consuming a large portion of the capital expenditure for solar power plant development.

“Regulations related to renewable energy in the form of presidential regulations are being processed. No government body specifically deals with renewable energy. Of course, there is no RPO policy in Indonesia. I think this policy is good to emulate, ” he explained.

Concerning the funding and investment issues of solar power plants, the Indonesian government is also establishing communication with international organizations. Harris also sees the problem of land acquisition as an ongoing problem in Indonesia. He hopes that in the future, he can discuss with the ministries and organizations in Indonesia, so it will be easier for investors to develop their solar power plant business. Meanwhile, both Cita and Yumarno expressed their appreciation for India’s success in managing the various risks that exist and providing proper solutions for achieving its renewable energy targets. Cita said that PLN is open to conduct deeper discussions with India in adopting learning steps for Indonesia’s progress in the field of renewable energy.

Presentation materials

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One Year Reflection of Central Java Solar ProvinceSolar

Klaten, 6 October 2020 – A year since the declaration of Central Java Solar Province (the pioneer province in Indonesia utilizing solar energy in their energy mix) on 17 September 2019 by the Ministry of Energy and Mineral Resources (MEMR) of Central Java Province, in collaboration with the Institute of Essential Services Reform (IESR) and supported by the Indonesian Solar Energy Association (AESI), the development of the use of rooftop Solar Power Plants in Central Java is increasing. 

Central Java Province itself has the potential for solar energy radiation of 4.05 kWh/kWp per day, slightly above Indonesia’s average (3.75 kWh / kWp). The installation of rooftops solar can help the Central Java Provincial Government achieve the renewable energy mix target in the 2020 Regional Energy Plan (RUED) of 11.60%.

The initiation of Central Java Solar Province is in line with PT Tirta Investama (Danone-AQUA) efforts to use renewable energy electricity. On October 6, 2020, Danone AQUA inaugurated its Solar Roof installation of 2.9 MWp at its factory in Klaten. The Solar Roof installed at the AQUA factory in Klaten consists of 8,340 modules solar panels in four roof buildings covering an area of ​​16,550m2. This power plant can generate energy for 2500 housing units with an installed power of 900 VA.

As part of RE100, the Danone group is globally committed to using 100% renewable energy for its operations by 2030. The roof-top PV installation is part of meeting this target. With the inauguration in Klaten, until 2020, Danone-AQUA has operated 5.67 MWp PLTS in its four factories.   

To install PLTS Roof, PT Tirta Investama is collaborating with Total Solar. Total Solar itself was originally an oil and gas company from France. The company is starting to switch to diversification to develop renewable energy. Total Solar has installed PLTS in three AQUA factories in the Java region. 

Fabby Tumiwa, Director of IESR, the respondent at this launch event, appreciated PT Tirta Investama’s steps in utilizing renewable energy that can reduce Greenhouse Gas (GHG) Emissions, according to Indonesia’s commitment (NDC) to achieving the Paris Agreement target. The Rooftop solar also contributes to Central Java’s commitment to realizing the Central Java Solar Province program. 

He also highlighted the involvement of Total Solar as a multinational company initially involved in the oil and gas sector, which is currently switching to the renewable energy sector.

“The investment in Rooftop solar by Danone-AQUA is an interesting phenomenon because it brings together two multinational companies that work together to encourage the global energy transition to ensure that global temperature increases do not exceed 2 degrees,” he explained.

According to Fabby, the energy transition is necessary to see that many industrial players have set targets to use clean electricity through the use of renewable energy technology. 

Fabby also reiterates if PT Tirta Investama’s investment shows that solar technology has now become more affordable, and the price of electricity is competitive. Following the fact that the cost of modules has fallen 90 percent in the last decade, the price of electricity from solar PV is getting cheaper and can match fossil plants such as PLTU. The widespread use of Rooftop solar also shows that intermittent renewable energy is not an insurmountable obstacle. This debunked the myth that has been circulating so far that PLTS is not reliable and expensive. 

Questioning the government’s target for a 23 percent renewable energy mix by 2025, Harris Yahya, Director of EBTKE, Ministry of Energy and Mineral Resources, explained that there is still a large gap between targets and planning must be addressed immediately. 

“Currently, our projection is still at 15 percent from 23 percent,” he said.

Harris explained that the government had taken several actions to meet the target of the 8 percent difference.

“The government has issued a Ministerial Regulation (Permen) number 49 of 2018, which has undergone improvements to Permen number 13 of 2019 and number 16 of 2019. This effort is to make Rooftop solar more attractive in the home industry and in all commercial buildings. , “He added.

Ganjar Pranowo, Governor of Central Java, praised the industry’s steps for implementing environmentally friendly energy. Ganjar emphasized the importance of behavior transformation in entering this energy transition era.

“There are solar-powered lights for street lighting that broken because they are not maintained, or the battery is missing. Maintenance funds from the central government are not available, but local governments can do something like this. Therefore, it is necessary to have an umbrella of cooperation between government agencies, training to maintain it and the great involvement of various parties so that the technology can be used sustainably, “he said.

Ganjar believes that Indonesia can move forward in the Rooftop solar sector because of the availability of the basic material for making solar cells. Therefore, Indonesia needs to build a solar cell industry and other supporters. 

“In collaboration with universities in Indonesia, we can certainly make battery technology (Rooftop solar) so that it can be mass-produced for households,” concluded Ganjar (US, FT). 

Sunsational GNSSA: Reflections on Three Years of National Movement of One Million Rooftop solar

Jakarta, 24 September 2020

Third-year after the National Movement for One Million Rooftop Solar (GNSSA) launched, declarators, energy observers, and rooftop solar costumers gathered online to celebrate various achievements and review the challenges, and reaffirm our shared commitment to encourage the use of rooftop solar in Indonesia.

Reminiscing, Fabby Tumiwa, Executive Director of the Institute for Essential Services Reforms (IESR) who is also one of the declarators, said that GNSSA’s ideas and targets were initially spontaneous gesture but became very impactful, as it is involved many discussions and initiations from various energy experts in it.

Hence until this year, the target of one million rooftop solar users has not been achieved yet. Still, he appreciates every effort in making it happen, including a total of 11.5 MW of installation with 7.5 MW of total PLN customers, the issuance of Ministerial Regulation (Permen) No. 49 of 2018, and the public’s attractiveness to the rooftop solar increased.

The declarators generally gave similar responses. Surya Dharma, Chairperson of the Indonesian Renewable Energy Society (METI), admitted that the rooftop solar plants’ socialization was relatively successful.

“This spirit must be carry on. I want us to echo this again so that it becomes a movement that brings success, “he said enthusiastically.

In line with the community’s increasing interest or local government to install a rooftop solar in their homes, several challenges have emerged. Tommy, one of the solar PV adopters, revealed, “In Semarang at the end of 2018 when Permen No. 49 just came out, the net meter is still difficult, but thankfully, for now, the net meter in Semarang is very easy and smooth. “

He also said that another obstacle was applying regulations that were not uniform so that the price of rooftop solar products varied greatly. He hopes that someday there will be cost standardization. 

Not only that, the investment cost for rooftop solar relatively still expensive. Tommy proposed that the local government through regional banks can offer loan assistance in the same way as credit for motorbikes.

Fabby in his presentation, highlighted a similar challenge.

 “There are things that still need to be improved, such as the ecosystem to support the development of rooftop solar power plants,” he said. 

He explained that government involvement is critical by providing policy support,  incentives, assisting, providing reliable information, and technical support for those interested in rooftop PV mini-grid and providing a service center to guarantee the products (mini-grid). If this design works, it can absorb around thirty thousand workers in the sector and have great potential in restoring the Indonesian economy. (IESR’s estimation)

Andika Prastawa, Director of the Center for the Study of the Telematics and Electronics Manufacturing Industry (PPIMTE), who is also the Chair of the Indonesian Solar Energy Association (AESI), said that the GNSSA’s big target is not ambitious but encourages all parties to work hard. 

He agreed that if the ecosystem were formed, in 2025, solar rooftop growth would be even faster. He calculated that if 200 MW reached per year, around 200 million US dollars would be circulated so that the industry would be more competitive.

“This industry is suitable for assisting economic recovery due to COVID-19 because solar rooftop does not require massive work and does not violate social distancing,” he said.

Increasingly Popular in Regions

Jarwanto from the Energy and Mineral Resources (ESDM) Central Java Regional Office said a promising development to adopt this technology in this area.

“Central Java was two years late from GNSSA, ”he said, laughing.

However, he explained that there were many positive things that the government had managed to anticipate the success of the solar revolution program.

“Starting with the installation of the solar rooftop in the official office, it proves to all that after we have made a declaration, we will boldly issue a regional policy. The response was amazingly good. If there were no coronavirus, the escalation would be higher, potentially around 5.1 MW, “he explained.

Meanwhile, in Bali, MEMR Regional office, Setiawan explained that the local government is still comprehensively reviewing the construction of Solar rooftop in the island because buildings and roofs structure was typical compared to the other big cities in Indonesia. He is also grateful for the central government’s assistance, which has provided 270 KW of solar rooftop facilities in Bali’s 7 iconic locations.

On the other hand, Jakarta’s Government recommendation to adopt the technology has become more robust, as it can reduce air pollution according to Governor Instruction number 66 of 2018. 

“If this solar panel is already in the national catalog, then there is no need for the old bureaucracy, users can immediately install it,” he said. Rikki from the Jakarta Manpower and Transmigration Office.

A solar energy activist who has been struggling for 20 years and is also a GNSSA declarator, Jon Raspati considers the achievement of GNSSA is a dream come true. He also invited everyone to be involved in GNSSA not only to enjoy the benefits of the solar rooftop but also to participate in saving the earth from dirty energy.

“Around the world, solar rooftop has become an economic powerhouse. Because it is sustainable energy and not discriminatory so that everyone can use it. We also have a responsibility to this earth, millions of people should care about it, “he said.

In May 2020, The World Bank (with several agencies) issued a report on global energy access status Tracking SDG 7: The Energy Progress report 2020. In this report, highlights for Indonesia include significant developments on three main targets: availability of electricity (based on electrification ratio) and clean energy for cooking, utilization of renewable energy, and energy efficiency. Based on IESR’s analysis, this good development should be considered with several notes. Energy access is often narrowly interpreted as a connection to the grid, access to LPG distribution networks, or the availability of basic lighting. However, regarding energy as essential services, it should be able to contribute to poverty alleviation, economic growth, and general development agenda. Beyond the basic needs for daily activities, that often tend to be consumptive in nature, the provision of energy is a driving force for productive activities; whether on a household scale, in the case of small and medium enterprises, and on a large scale. Access to energy is also important for education and health services. With better education and health, more windows of opportunity are opened, including opportunities to get a job or to entrepreneurship.

In the Indonesian context, “quality energy access” has yet to enter mainstream energy discourse, for both electricity and clean cooking. With the government’s plan to achieve 100% electrification this year, it is then necessary and timely to introduce access beyond connections – as to influence future planning related to energy access. This webinar will discuss lessons learned from the international landscape on integrated energy planning that is needed, specifically to answer the gaps in considering the quality and community context to energy provision.

IESR with CAFOD held a talk in a webinar session discussing Beyond 100%: What does universal energy access mean? featuring Dr. Sarah Wykes, Lead Analyst Climate Change & Energy, CAFOD and Fabby Tumiwa, Executive Director, IESR on Friday, September 4th 2020 via Zoom and published Live

Hosted by: Marlistya Citraningrum, Program Manager Sustainable Energy Access, IESR

Presentation materials:

Dr. Sarah Wykes

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Fabby Tumiwa

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Rachmat Mardiana

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Drs. Samsul Widodo, MA

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Jaya Wahono

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