With advancements in solar cell efficiency and the growing adoption of battery energy storage systems (BESS), clean energy solutions are becoming more cost-effective and capable of replacing coal and gas-fired power plants.
Indonesia is on the brink of a renewable energy breakthrough, as solar and wind power achieve price competitiveness with fossil fuel-based electricity, according to a new report by the Institute for Essential Services Reform (IESR).
With advancements in solar cell efficiency and the growing adoption of battery energy storage systems (BESS), clean energy solutions are becoming more cost-effective and capable of replacing coal and gas-fired power plants.
RELEVANT SUSTAINABLE GOALS
Fabby Tumiwa, Executive Director of IESR, stated in a virtual press conference on February 27, 2025, that solar photovoltaic (PV) technology has now reached over 30% efficiency, significantly surpassing conventional solar panels.
“Today, perovskite-based solar cells and tandem solar cells have achieved efficiency levels above 30%—a substantial improvement over previous technologies,” said Fabby. “This increased efficiency drives down costs, making solar energy even more competitive with fossil fuels.”
The Role of Perovskite Solar Technology
A key driver of this transformation is perovskite-based solar technology, a crystal-structured mineral that has revolutionized solar cell production. Perovskite solar cells are cheaper, more efficient, and easier to manufacture than traditional silicon-based cells, accelerating the transition to renewable energy.
As Indonesia pushes toward energy independence, Fabby noted that maximizing solar and wind power potential by 2030 would deliver two major benefits:
- Strengthening national energy security by reducing dependence on imported fossil fuels.
- Lowering greenhouse gas emissions, aligning Indonesia’s climate commitments with the Paris Agreement.
Battery Storage: The Game-Changer for Renewable Energy
IESR’s findings also highlight the importance of battery energy storage systems (BESS) in making renewables more reliable. Countries worldwide have demonstrated that integrating solar and wind energy with battery storage can provide stable and affordable electricity.
“According to the International Energy Agency (IEA), the cost of electricity from solar and wind power, when combined with battery storage, is now cheaper than gas-fired and even coal-fired power plants,” Fabby explained.
The IESR report also suggests that Indonesia can replicate global trends in clean energy adoption. However, achieving this will require:
- Strategic investment in renewable energy projects
- Supportive government regulations and incentives
- Accelerated adoption of energy storage technologies
Can Indonesia Catch Up to Global Trends?
Despite falling renewable energy costs, Indonesia still faces policy and regulatory challenges. The current domestic market obligation (DMO) policy, which mandates coal producers to sell a portion of their output at capped prices for domestic electricity needs, has artificially lowered coal power prices.
Fabby argued that removing these subsidies and shifting investments toward renewables would allow Indonesia to secure affordable, clean, and reliable energy for the future.
“With the right investments and regulatory framework, Indonesia can align itself with global energy trends and ensure a cleaner, more cost-effective power system for years to come,” he said.
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