The Floating Solar Photovoltaic (FSPV) project in Indonesia offers a solution to energy transition, particularly on remote islands.

The Government of Indonesia is committed to diversifying its energy sources, reducing dependence on fossil fuels, and promoting the adoption of clean and sustainable energy technologies. Indonesia’s limited land availability for solar power projects makes floating solar power plants a feasible alternative as they are installed on water bodies, such as lakes, reservoirs, dams, and onshore.

Through this project, GGGI Indonesia collaborates with the Ministry of Energy and Mineral Resources (MEMR) and other key stakeholders to provide technical assistance, develop site-specific solutions, establish policies, and recommend business models for the deployment of large-scale FSPV projects in the future.

The project aims to develop bankable FSPV projects and facilitate investment, demonstrating the viability of utility-scale FSPVs for future scale-up and replication.

The project aligns with the Government of Indonesia’s ambitious targets for renewable energy development through the National Energy General Plan (RUEN) and the National Medium-Term Development Plan (RPJMN).

The project is a crucial step towards enhancing the renewable energy landscape in Indonesia and achieving energy security while securing environmental goals.

According to the Ministry of Energy and Mineral Resources (MEMR), Indonesia is committed to reducing greenhouse gas emissions in the energy sector by 358 million tons of CO₂e by 2030 as part of its Nationally Determined Contribution (NDC).

Achieving this requires a shift from fossil fuels to renewable energy, with solar power playing a crucial role. However, the increasing demand for land resources from sectors like agriculture and real estate has led to significantly higher land acquisition costs for solar power plants.

In this context, FSPVs are emerging as a feasible alternative for solar power generation. Indonesia’s abundance of water bodies allows the country to effectively harness the benefits of floating solar technology without compromising land use for other essential sectors.

There are still several barriers that hinder FSPV deployment, however, which include regulatory, technical, and commercial challenges. Overcoming these obstacles through establishing clear and supportive regulations and demonstrating viable FSPV projects is crucial in accelerating Indonesia’s transition to a sustainable energy future.

Secure investment commitments to implement FSPV projects with an estimated 100-megawatt peak (MWp) installed capacity.

This is based on the following project outputs:

– Develop site-specific solutions, establish policies, and recommend business models for utility-scale floating solar deployment

– Showcase the economic feasibility and practical implementation of FSPV technology, allowing replication and scaling up of similar FSPV projects across Indonesia.