Isolated grids and ‘fixed gas’ raises storage-plus-renewables potential in Indonesia

November 30, 2016
LinkedIn
Twitter
Reddit
Facebook
Email

Energy storage is one solution to Indonesia’s fragmented grid. Credit: Tom Kenning.
Poor grid flexibility in Indonesia means energy storage could be critical leverage when trying to install solar and wind projects.

Speaking at the Solar & Off-Grid Renewables Southeast Asia event in Bangkok, Andre Susanto, Clean Energy Consultant at Bluejay Energy, said grid management is a challenge in Indonesia, because there are gas turbines and diesel power plants on ‘take-or-pay’ contracts or being run as fixed capacity generators. This means that the grid is not well placed to handle variable energy from wind and solar projects.

Susanto said that one solution could be for a renewables developer to tell Indonesia’s only utility, the state-run PLN, that it is going to set up a solar PV project, but that it will also handle its own spinning reserve, whether that be through diesel backup or through energy storage. The developer could then ask for more money from PLN.

However, this will be an issue if trying to charge PLN more than the current cost of generation.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Susanto said: “That’s an uphill battle against the wind, with the flood coming over you, so it’s difficult.”

A recent Asian Development Bank report fond that Indonesia has 600 separate grids, not including the smallest sized systems and mini-grids. Of the 600, Susanto said there are around 150 different isolated grids of 50MW size or larger where renewables could be injected. If these isolated grids have enough capacity to come in with storage or a separate spinning reserve, then combining these solutions with renewables be a good argument to PLN.

As well as discussing storage, Susanto also said that some of Indonesia’s most remote isolated grids represent opportunities for intrepid solar developers.

Read Next

March 3, 2026
3.6GWh of solar-plus-storage developments have progressed in Australia this week, with Edify Energy partnering with DT Infrastructure and Flow Power acquiring a 60MW project.
March 3, 2026
Oregon-based utility company Portland General Electric has finalised agreements for more than 1,000MW of new renewable energy and BESS projects.
February 26, 2026
Large-scale renewable energy power plant developers in the Philippines have been instructed to integrate energy storage into their proposed facilities.
February 25, 2026
Experts at the ongoing Energy Storage Summit 2026 have cautioned against treating co-located storage as a “silver bullet” to prop up commercially underperforming solar assets.
February 24, 2026
D. E. Shaw Renewable Investments (DESRI) has signed a preferred equity investment in IPP Linea Energy’s 235MW/470MWh Duffy battery energy storage system (BESS) in Matagorda County, Texas.