Indonesia's Largest of Solar Farm: Key Opportunities and Challenges

Uploaded by Prakarsa Jaringan Cerdas Indonesia | 9 Maret 2021 Script Writer : Miftahus Salam

Editor : Nisma Islami Maharani & Cecilia Novia

Indonesia is comitted to achieve of 23% Renewable Energy in 2025's National Energy Mix as part of to fulfill the National Energy Policy Target and Paris Agreement. One of renewable energy resources is solar energy. Solar energy has biggest potential of renewable energy. It has 207,8 GW potential to be produced. But in 2021 the solar energy that has been installed is only 153.8 MWp (0,07%). To maximize the production and realize the Indoesia's Largest of Solar Farm we need to know the key opportunities and challenges to implementthe solar farm.


In 2020, the solar power has capacity of 153.8 MWp. In 2021 there is a plan to incerase capacity planning of 328.7 MW. The addition of this capacity is one proof of government commitment toward energy transition.


In terms of Solar Power development in Indonesia, there are 3 trends that will be entering the electricity system, namely Rooftop Solar PV, Large Scale Solar PV (Solar Farm), and Floating Solar PV.

Indonesia is a tropical country with large land to implement solar farm. There are three reasons that Indonesia has potential to generate electricity with solar energy

  • Has huge energy potential from solar energy

Indonesia is a tropical country with year-round sunshine. It makes Indonesia and ideal country for the implementation of large solar farm. Indonesia has 207,8 GW potential from solar energy.

  • Have large areas to install solar farm

Indonesia has large land and sea. To install enough PVs to meet the 2050 target, Indonesia needs at least 8,000 square kilometres, or about 0.4% of the country’s land area. Should problems with land acquisitions arise, the government could also install the solar panels on water. A large fraction of these panels can be placed on floats on lakes and sheltered seas. Indonesia has huge water territory as the world’s largest archipelago. It has lakes with an area of about 119,000km² and territorial sea of about 290,000km². Additionally, most buildings can host solar panels on the roof. [1]

  • Decreasing cost of solar farm installation

Along with the development of technology, implementation prices and generation rates from solar energy continue to decline every year. This can be seen in the graph of IRENA as follows.

Costs continue to fall for solar and wind power technologies

With that reason, Indonesia have opportunity to build large solar farm and generate green energy to PLN Grid and reach the target of RUEN and Paris Agreement,