Reviewing the potential and cost-effectiveness of grid-connected solar PV in Indonesia on a provincial level

Photovoltaic (PV) energy could play a large role in increasing the electrification ratio and decreasing greenhouse gas emissions in Indonesia, especially since Indonesia comprises over 17,000 islands which is a challenge for the distribution of fuels and modern grid connection. The potential of grid-connected PV depends on, a.o. population, electrification ratio, irradiance, electricity demand, electricity generation costs and the urbanization ratio. Large spatial differences exist for these factors in Indonesia, therefore this study aims to assess the energetic potential and cost-effectiveness of grid-connected PV in Indonesia on a provincial level. Taking restrictions of the electricity demand during day-time and a minimal base load of conventional power systems into account, the total potential of grid-connected PV systems is about 27 GWp, generating 37 TWh/year, which is about 26% of the total electricity consumption in Indonesia over 2010. In the eastern provinces of Indonesia the LCOE of PV in grid-connected urban areas is lower than the cost of present electricity generation and could be a viable alternative if excluding high subsidies for electricity production