Battery Energy Storage Systems in Indonesia: Market Outlook,
Indonesia''s continued coal-fired power dependence complicates BESS business cases. Long-term power purchase agreements with coal plants and subsidized electricity
Indonesia's electricity system can be powered predominantly by solar PV, complemented by geothermal and hydroelectric power. Off-river pumped hydro energy storage is identified as a major asset for balancing high solar energy penetration.
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. The Indonesian government recognizes the importance of energy storage.
Priority Actions for Market Development: Battery Energy Storage Systems constitute essential infrastructure for Indonesia's energy transition and industrial development objectives. The technology addresses multiple requirements including renewable energy integration, grid stability in fragmented networks, and reliable power for economic activities.
The agreement was made with other state-owned bodies, such as the Indonesian Battery Corporation, to build the Battery Energy Storage System by 2022. However, no information has yet been revealed about the Battery Energy Storage System's location or specific functions.
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