Trina Solar Sees Huge Market Potential For Solar Energy In Indonesia
Global PV and smart energy total solution provider Trina Solar sees enormous potential for solar energy in Indonesia and believes solar is the best source of renewables to meet the nation's net-zero targets.
Renewables today account 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 by 14% to 211 megawatt (MW) from 185MW, says IRENA. Indonesia ranks seventh in Southeast Asia for solar energy.
Trina Solar head of Southeast Asia, Elva Wang, says: "For Indonesia to transition to clean energy and meet its targets, the county must accelerate the deployment of solar energy.”
“Solar is the right choice as it is readily available and can be quickly deployed. Indonesia is a great untapped market for solar energy. There is a huge need that we can fulfill with our market-leading solar modules, trackers and integrated solutions," she adds.
Indonesia ranks seventh in Southeast Asia for installed solar energy capacity. The challenge is that Indonesia must quickly install renewable energy to meet its target for 2025 and 2050.
The cost of solar modules, meanwhile, has decreased due to better manufacturing technology and 'economies of scale'. Solar power has now reached grid parity in many markets; delivering a lower cost of electricity than the grid.
For Indonesia to meet its target of renewables accounting for 23% of the energy mix by 2025, it needs to have a solution that is available today and can be quickly deployed. Trina Solar highlighted that rooftop solar can be deployed in days, while solar farms can also be developed much faster than other forms of renewable energy.
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