|Title||Distributed Photovoltaic Economic Impact Analysis in Indonesia|
|Year of Publication||2020|
|Authors||Naïm R Darghouth, James McCall, David Keyser, Alexandra Aznar|
Like other countries in the region, the Government of Indonesia aims to increase its use of renewable energy in the near term from various technologies, including grid-connected distributed photovoltaics (DPV). While little DPV has been installed to date, the policy landscape has been shifting over the past few years with recent pronouncements from the state-run utility Perusahaan Listrik Negara (PLN) and the Ministry of Energy and Mines (MEMR) that have begun to provide a more supportive policy framework for the deployment of DPV. Nonetheless, many questions remain as to how DPV impacts customers, the utility, and the economy as a whole.
This report presents a holistic view of DPV economic impacts in the Java-Bali region of Indonesia by assessing customer economic impacts, utility revenue impacts, and jobs and economic development impacts. It includes three interrelated analytical undertakings:
Taken as a whole, these results indicate that the current set of tariffs and regulations governing DPV in Indonesia—used as inputs to our analyses—would not induce strong deployment among commercial and industrial utility customers. Nonetheless, in the near-term, even if up to 3 GW of DPV deployment were to occur, it would have a minimal impact on PLN’s revenue collection. DPV deployment, however, would have an initial and ongoing positive effect on jobs and economic development, primarily accruing to the Indonesian construction and manufacturing sectors. Decision makers can use this information to determine how to balance DPV customer, utility, and broader social priorities going forward.