PVTIME – In a landmark energy transition initiative, Indonesia has unveiled a three-year national programme to develop 100GW of solar photovoltaic capacity, officially launching it in Bali. Senior government figures have confirmed that this policy is a core strategic pillar of national energy reform and that the government is fully committed to its delivery.
According to national power sector data recorded in April this year, Indonesia’s total installed power capacity stands at 108GW, with solar contributing only 1.5GW. Coal continues to dominate the domestic power mix, while renewable sources, including hydropower and geothermal energy, account for just under 18% of overall capacity. The new solar programme, once fully completed, will make solar power the country’s leading source of electricity generation.
The Ministry of Energy and Mineral Resources projects that the completed solar infrastructure will reduce annual national energy subsidy expenditure by 739 trillion Indonesian rupiah (approximately 28 billion Chinese yuan). Indonesia currently operates as a net oil-importing nation, with domestic fuel consumption heavily reliant on state subsidies.
Enhanced solar deployment alongside existing geothermal assets, newly identified natural gas reserves, and increased domestic oil output will eliminate the country’s dependence on oil imports. In a mid-August state address, the government outlined plans to expand solar power by 30GW by 2026. This will include the nationwide installation of 1MW solar facilities in individual villages, as well as supporting the premature decommissioning of 13GW of diesel power generation capacity.
A total of fourteen flagship solar projects have been initiated under the new national scheme, comprising two operational assets, six ongoing developments, and six investment-ready proposals. These 14 projects have a collective investment value of 135 trillion Indonesian rupiah (equivalent to 7.62 billion US dollars). Officials estimate that the full 100GW solar programme will require a total investment of 73 billion US dollars, supported by the deployment of nationwide battery energy storage systems to mitigate nocturnal power supply deficits.
Indonesia’s state-owned electricity company will purchase solar power at a tariff of 5–6 US cents/kWh, which exceeds the current procurement rate of 3–4 US cents/kWh for conventional coal-fired electricity.
