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Investing in solar power is the future for Indonesia

Indonesia officially kicked off on Thursday last week the development of the Rp 1.8 trillion (US$127.24 million) Cirata floating solar power plant in West Java, one of the national strategic projects (PSN), as the government aims to boost the contribution of renewables to the country’s energy mix. PT PJB Masdar Solar Energi, a joint venture company between state-owned electricity firm PLN subsidiary Pembangkitan Jawa Bali and Abu Dhabi-based renewables firm Masdar, conducted the inauguration of the power plant. The Investment Coordinating Board (BKPM) expert staff on priority investment Aries Indanarto said on Friday that Masdar’s investment realization for the project had only reached 1.97 percent of the total investment.

The Cirata solar photovoltaic power plant would have a capacity of 50 megawatts (MW) in its first stage of development and would gradually be increased to 145 MW by 2022, PLN strategic procurement 1 director Sripeni Inten Cahyani said earlier in January.

The power plan is also estimated to be able to power 50,000 houses, as well as reduce carbon dioxide emission by 200,000 tons annually upon its operation. Indonesia is known for its abundance of sunny days. The country receives 3.6 – 6 kWh/m2/day of solar irradiation intensity, equivalent to annual power output of 1,170 – 1,530 kWh/kWp (World Bank & Solargis, 2017). The National Energy Policy (KEN) has set a target of solar generation at 6.5 GW in 2025 and 45 GW in 2050. However, Indonesia has observed limited growth on solar deployment, both for utility-scale solar generation and rooftop solar.

(Source: The Jakarta Post/IESR)

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