Average utility scale ESS price per 2MW in Indonesia

Can energy storage systems be deployed in Indonesia?

Tapping into the limited but existing opportunities for deploying energy storage systems (ESS) is vital for expanding their role in Indonesiaʼs power sector. At present, the greatest potential for ESS deployment lies in smaller and/or isolated systems, as well as in industrial or large scale commercial solar rooftop PV with BESS.

How can Bess help the EV market in Indonesia?

The growing EV market will necessitate a robust battery ecosystem, including storage solutions for grid integration and charging infrastructure. Indonesia's focus on industrial growth creates a demand for reliable power. BESS can offer backup power, improve power quality, and enable cost savings through peak shaving.

Why do ESS installation costs vary across countries?

Variations in ESS installation costs across countries are driven by factors such as project size, labour costs, and the availability of a strong technology supply chain. China currently leads in this area due to relatively low soft costs and advanced hardware manufacturing, particularly in lithium iron phosphate (LFP)-based LIB cells.

How much does solar PV cost in Indonesia?

Similar to wind, current installed solar PV capacity in Indonesia is only 90 MW, with the capital cost still ranges from 700 to 1200 USD/ kW, higher than capital costs in Europe, China and India which mostly below 1000 USD/kW (IRENA, 2019). The cost in leading markets even reaches below 500 USD/kW in 2019 (Vartiainen, et. al, 2019).

How to reduce the cost of renewable electricity in Indonesia?

This is one reason why having access to cheap capital is one of the most critical factors for bringing down the cost of renewable electricity. Most power plant projects in Indonesia have 70-80% of debt in its financing and depending on the funders, the interest rate ranges from 5-8% (international funding) and 7-12% (local funding).

What is the average LCOE of solar power in Indonesia?

For example, according to NREL studies, the average LCOE of solar in Indonesia is the highest among ASEAN member state, reaching 165 USD/MWh and far below Burma with an average of 79 USD/MWh (Lee, et al., 2019). A similar problem can also be expected from wind power.