Indonesia has the potential to install 450 MW of wind capacity between 2023-2027 , said Global Wind Energy Council (GWEC).
However, there are possibilities for Indonesia to cross this capacity and could add 550 MW capacity, if deployment is accelerated and barriers are removed.
Elaborating on the challenges,the Global Wind Energy Council (GWEC) said the challenges faced by Indonesia include barriers to policy frameworks, transmission infrastructure and permitting schemes. Presently, it has 150 MW of installed onshore wind capacity.
It further cited the inadequate project screening in Indonesia as projects can secure offtake deals without having to show permitting, feasibility or sufficient need sources. Moreover, lack of penalties for those who failed to deliver has led to lack of credible projects and robust securing of offtake agreements. Due to this, the country might face challenges to achieve its energy targets and potentially damages trust in the wind industry. Further, Indonesia’s grid planning is complicated by the nature of the country’s archipelagic geography.
Suggesting a few solutions to this challenges, the report said Indonesia should broaden pre-qualification criteria for project viability and conduct a government-funded study to identify optimal locations for wind projects and ringfence selection locations for wind only to accelerate the sector’s growth.
The report further recommended that the government should focus on grid modernisation and expansion. It also suggested the promotion of the diversification of the energy mix and competitive processes to ensure a low-cost renewable energy supply.
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