, Indonesia

Here's how much additional solar PV minigrids would cost in Indonesia

Considering that all government requirements are to be followed.

Clean energy consultant Andre Susanto said that Indonesia's Directorate General of New and Renewable Energy and Energy Conservation has been providing funds to build micro hydro and solar PV based mini grids throughout Indonesia since 2012. Between 2012 and 2015, over 450 solar PV minigrids were tendered and installed.

The total capacity of the solar panels installed is roughly 13MWp. The requirements of these minigrids are quite comprehensive.

"They include the distribution network and household connections including energy limiters, street lighting on utility company standard poles, medium voltage transformers when needed, sizable battery requirements and various other specifications," he said.

The nominal average cost of the turn-key installation of the solar PV sites commissioned between 2012 and 2015 is US$8.27/Wp. Remembering that the location of these sites are quite heavily skewed toward difficult remote areas, it is surprisingly reasonable.

Using this baseline, if one was to properly install additional solar PV minigrids in the near future, how much would it cost? Let's assume that the government's requirements will still be followed.

This means that the solar PV minigrids will need to have utility approved poles, distribution cables and household connections, street lighting on the poles, medium voltage transformer on larger systems, and many other requirements.

"On this basis alone, our estimation is that for sites that have moderate difficulties, it should cost between US$6.50/Wp to US9/Wp. This will already include the contractor's margin," Susanto added.

View the full article from Andre Susanto here.

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