- Indonesia’s solar ambitions face policy hurdles and overcapacity issues.
- Net-metering revocation dampens investor confidence.
- Despite challenges, industries increasingly adopt solar solutions outside regulated areas.
Indonesia’s ambitious solar energy goals are hitting roadblocks due to regulatory inconsistencies and overcapacity issues.
The recent revocation of net-metering schemes for rooftop solar installations has dampened investor confidence and hindered the country’s progress towards its renewable energy targets.
This policy reversal, driven by financial constraints faced by state-owned utility company PLN, marks a significant setback for the solar industry.
Too much of a good thing?
Ironically, Indonesia’s energy sector is grappling with an excess capacity problem. PLN’s inability to sell all the electricity it produces has led to a reluctance to embrace additional solar capacity.
This overcapacity, particularly noticeable in the Java-Bali grid, has created a 4 gigawatt surplus, making it challenging to integrate new renewable energy sources into the existing infrastructure.
Silver linings in the solar playbook
Despite these challenges, there’s a growing adoption of solar energy outside PLN’s licensed areas.
Industries are increasingly turning to rooftop and ground-mounted solar systems to reduce costs and lower their carbon footprint.
Companies like Xurya Daya Indonesia are expanding their solar projects across the archipelago, showcasing the persistent demand for renewable energy solutions.
However, regulatory certainty remains a key concern for long-term investments in the sector.
To read the original article: https://www.techinasia.com/policy-flipflops-overcapacity-dull-indonesias-ambitious-solar-energy-goals
