Key Takeaways
- Indonesia aims to boost solar power capacity to 100 GW, starting with 30 GW in 2026.
- The transition will see the phasing out of 13 GW of diesel power plants.
- This initiative is expected to lower electricity generation costs significantly and enhance energy independence.
Expansion of Solar Power in Indonesia
Indonesia’s President has unveiled an ambitious plan to expand the country’s solar power capacity to 100 gigawatts (GW). The initiative starts with the development of 30 GW of solar power plants by 2026, coinciding with the gradual phase-out of 13 GW of diesel power plants. This decision underscores Indonesia’s significant potential for solar energy, given its favorable geographic location with near-constant sunlight exposure.
“This makes no sense for our remote islands to rely on ships for diesel fuel to generate electricity. The economic costs are too inefficient. With solar power plants, we can build our energy independence,” the President emphasized during his announcement.
The Coordinating Ministry for Economic Affairs has estimated that this shift to solar power could reduce electricity generation costs by approximately IDR 73.9 trillion (USD 4 billion) annually. The widespread adoption of solar energy is also anticipated to decrease fuel import needs and provide foreign exchange savings for Indonesia.
Aligned with this comprehensive solar development strategy, the President has called for each village across the nation to be equipped with a 1 megawatt (MW) solar power plant. Currently, solar and wind energy capacities remain limited, but solar photovoltaic (PV) deployments are steadily increasing, with projections showing a rise from 0.9 GW in 2024 to 1.5 GW in 2025.
As of the end of 2025, Indonesia’s total power capacity stands at 99 GW, distributed as follows: coal (52%), gas (25%), hydroelectricity (8%), oil (8%), biomass (3%), and other renewables (4%). The total renewable energy capacity has reached 15.1 GW, reflecting a growing commitment to sustainable energy solutions (Enerdata Global Energy Research).
The content above is a summary. For more details, see the source article.
