PLN seeks BESS TKDN relaxation, green tariff support for 100 GW solar plan

By Dominikus

State-owned electricity company PT PLN is seeking regulatory support to accelerate Indonesia’s planned 100 GW solar power program, including land availability for solar and battery energy storage system (BESS) projects, relaxation of local content (TKDN) requirements for BESS, competitive auction mechanisms, and the implementation of green tariffs for selected customers, according to a presentation delivered at the Policy Dialogue “Target PLTS 100 GW Indonesia” in Jakarta on Wednesday (May 13).

PLN Vice President of Hydro Energy Ardian Inkaresa said the 100 GW solar program is part of the government’s broader effort to strengthen national energy security, reduce dependence on fuel oil, and lower electricity supply costs.

In its presentation, PLN said land availability would be one of the key issues in implementing large-scale solar and BESS projects. The company proposed that land for BESS and solar PV development be supported by the government, including through the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, to prevent land speculation that could increase project costs and affect electricity supply costs.

PLN also highlighted the need to strengthen the domestic supply chain for the solar and battery ecosystem. However, the company said BESS development may require relaxation of local content requirements, locally known as TKDN, while domestic manufacturing capability is being developed.

Read also : PLN advances solar and battery storage projects to support energy transition

The utility also proposed that procurement under the 100 GW solar program be carried out through competitive auctions to obtain the best price through fair competition. PLN said the program should not rely on a feed-in tariff mechanism.

Another proposed support measure is the implementation of a green tariff for certain electricity customers that want to procure renewable electricity. PLN said this could help support clean energy development without adding a burden to the state budget.

PLN said the 100 GW solar program would be implemented in stages, starting with a quick-win package of 17 GWp of solar PV and 39 GWh of BESS, which is being prepared for launch in June 2026.

The quick-win program is expected to reduce fuel oil consumption by around 2.7 million kiloliters per year and lower electricity generation supply costs, known locally as Biaya Pokok Penyediaan or BPP, by Rp7.43 trillion per year.

The first package consists of 15.4 GWh of BESS and 6.9 GWp of solar PV under the fat burning program for large systems, 9 GWh of BESS and 3.2 GWp of solar PV for the replacement of fuel oil-fired diesel power plants in isolated systems, and 14.6 GWh of BESS and 7 GWp of solar PV under the Java-Bali solar PV program in the 2025-2034 electricity supply business plan, or RUPTL.

PLN said the use of BESS would allow solar power to play a larger role in the electricity system. Under the new approach, BESS would be placed at the front as a pseudo load follower, while solar PV would serve as the energy source to charge the battery system.

The company said this would allow solar energy to be stored and dispatched according to system needs, supporting a more stable and flexible electricity supply for nearly 24 hours.

PLN also proposed a bundling procurement scheme for the quick-win program. The company said bundling would serve as a strategic breakthrough to accelerate large-scale renewable energy development, improve procurement efficiency, optimize economies of scale, attract investors, and mitigate technical, financial, legal, and operational risks through an integrated project design.

The company said the scheme would be aligned with PLN’s procurement principles of efficiency, effectiveness, transparency, accountability, and competitiveness.

Editing by Reiner Simanjuntak