Trina Solar Sees Huge Market Potential For Solar Energy In Indonesia

The government has set a target of renewable energy accounting for 23% of the energy mix by 2025 and 31% by 2050.

Renewables today accounts for 11-14% of Indonesia's energy mix. But the challenge for Indonesia is ensuring renewables growth not only keeps up with the growth in energy consumption – as the population and economy grows – but it must exceed that so Indonesia can achieve its renewable energy targets.

The Indonesia Energy Transition Outlook, a report issued by the International Renewable Energy Agency (IRENA) and Indonesia's Ministry of Energy and Mineral Resources last October, forecast that Indonesia's population will reach 335 million people over the coming three decades. And it forecast that electricity demand will grow at least fivefold to over 1,700 terawatt hours (TWh) by 2050.

The report recommended scaling up key renewable power resources such as solar. Coal still accounts for more than 40% of Indonesia's energy mix and 60% of electricity generation. Solar, meanwhile, represents a smaller percentage than hydro-electricity and geothermal.

This is contrary to the global trend. IRENA says the world in 2021 added almost 257 gigawatts (GW) of renewables; 133 GW from solar. Indonesia's solar energy capacity in 2021 increased 14% to 211 megawatt (MW) from 185MW, says IRENA. Indonesia ranks seventh in Southeast Asia for solar energy.