Indonesia targets 100 GW solar expansion by 2029

Indonesia is pursuing an ambitious plan to develop 100 gigawatts (GW) of solar capacity by 2029, a project estimated to require US$73 billion. The initiative, launched by President Prabowo Subianto, aims to electrify 100 mid-sized cities.

Experts from the Institute for Energy Economics and Financial Analysis (IEEFA) suggest that this solar program should be integrated into Indonesia’s national least-cost electricity planning, specifically the 10-year Electricity Supply Business Plan (RUPTL). Integrating the target would allow the government and state utility PLN to better coordinate investments in generation, transmission, and energy storage. The plan involves various solar types, including ground-based, floating solar, and rooftop solar.

To achieve these goals, Indonesia has sought cooperation from China. While Indonesia seeks investment, analysts suggest China may be better suited to act as a builder or engineering, procurement, and construction (EPC) contractor rather than a primary owner. A precedent for this model is the Cirata floating solar plant in West Java, which was developed through a joint venture between Indonesia’s PLN Nusantara Power and the UAE’s Masdar, with China’s PowerChina serving as the EPC contractor.