Jakarta, Indonesia, March 11, 2025 – The Ministry of Energy and Mineral Resources (MEMR) with the support of the Global Green Growth Institute (GGGI) is publishing the Guideline for Planning Floating Solar Photovoltaic Power Plants (FSPV), or solar panels installed on water bodies, as a viable solution to realizing the country’s energy transition. The Ministry’s Directorate General of New, Renewable Energy, and Energy Conservation (Direktorat Jenderal EBTKE) has welcomed the initiative and adopted the guideline, which also serves as an update to the 2021 version launched by MEMR. The guideline focuses on the planning and design phase of FSPV implementation in water bodies like dams, reservoirs, and lakes.

“This guideline covers all stages of floating solar power plant planning – from site selection, technical design, occupational safety and health aspects, and environmental and social impacts, to financial, regulatory, and licensing requirements. We hope that the guideline can be a primary reference for stakeholders, such as central and regional governments, relevant institutions, and the private sector, involved in implementing and developing floating solar power plant projects in Indonesia,” said Tony Susandy, Technical and Environmental Coordinator of MEMR’s Directorate of Various New and Renewable Energy (Direktorat Aneka EBT), during a sharing session about the guideline in Jakarta.

GGGI’s support is part of the Renewable Energy Accelerated Transition (RE-ACT) project, funded by the New Zealand Ministry of Foreign Affairs and Trade. The project aims to create an enabling environment to facilitate and mobilize investments in the renewable energy sector. This also means looking at existing policy frameworks, identifying gaps and opportunities for improvement, and offering feasible solutions, all while simultaneously realizing Indonesia’s commitment to reducing greenhouse gas emissions in the energy sector by 358 million tons of CO₂e by 2030.

The guideline is also part of a collaboration with GGGI’s Designing Article 6 Policy Approaches (DAPA) project, which aims to explore carbon financing opportunities for FSPV projects in dams managed by the Ministry of Public Works. Carbon credits earned from the reduction of greenhouse gas emissions from such FSPVs are hoped to be made eligible for international carbon trading, where the decision to transact remains determined by the government.

According to MEMR, solar power accounts for almost 90% of Indonesia’s renewable energy potential. However, out of the 3,295 gigawatt (GW) potential generation, only 789 megawatt (MW) have so far been utilized due to limited land availability and high land acquisition costs for ground-mounted solar panels. FSPVs in this context are deemed a valuable alternative since there are abundant water bodies in Indonesia, allowing the country to effectively harness its benefits without compromising land use for other essential sectors like agriculture and real estate.

While FSPVs have been successfully deployed in various international projects, their implementation requires careful planning due to technical complexities, particularly in electrical system safety, as well as anchoring and mooring system design. The guideline’s purpose is to address such challenges.

“Issues related to policies on the utilization of natural water bodies and protected forest areas [for FSPVs] are also a concern that needs to be followed up comprehensively. We appreciate the various perspectives that have been presented and will take them into consideration in formulating better policies and regulations in the future,” added Mr. Susandy.

In the long run, the economic and social impacts of developing FSPVs span the gamut from creating green jobs during construction, operation, and maintenance to boosting local economies and creating access to reliable, affordable, and green electricity for many people.