Indonesia Battery Energy Storage Market | 2019 – 2030 | Ken
Indonesia Battery Energy Storage Systems market is valued at USD 3.1 billion, fueled by demand for renewables, grid enhancements, and tech advancements in lithium-ion batteries.
Indonesia is currently building on its storage capacity through the planned/ongoing installation of 5 MW battery energy storage systems (BESS), linked to PLN's renewable sites. Indonesia is also building its first utility-scale integrated solar and energy storage project in Nusantara.
High Initial Investment Costs:One of the primary challenges facing the battery energy storage market in Indonesia is the high initial investment required for deployment. The average cost of installing a battery energy storage system can range from IDR 1 billion to IDR 3 billion (USD 70,000 to USD 210,000) per megawatt-hour.
Priority Actions for Market Development: Battery Energy Storage Systems constitute essential infrastructure for Indonesia's energy transition and industrial development objectives. The technology addresses multiple requirements including renewable energy integration, grid stability in fragmented networks, and reliable power for economic activities.
Added to this, Indonesia's National Electricity Plan sets out rules only for its power sector development, and not for renewable energy. There is a Renewable Energy Bill in the pipeline, but the bill has yet to be ratified. Without clear guidelines, investors remain cautious.
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