Distributed Photovoltaic Economic Impact Analysis in Indonesia

This report presents a holistic view of DPV economic impacts in the Java-Bali region of Indonesia by assessing customer economic impacts, utility revenue impacts, and jobs and economic development impacts.

Like other countries in the region, the Government of Indonesia aims to increase its use of renewable energy in the near term from various technologies, including grid-connected distributed photovoltaics (DPV). While little DPV has been installed to date, the policy landscape has been shifting over the past few years with recent pronouncements from the state-run utility Perusahaan Listrik Negara (PLN) and the Ministry of Energy and Mines (MEMR) that have begun to provide a more supportive policy framework for the deployment of DPV. Nonetheless, many questions remain as to how DPV impacts customers, the utility, and the economy as a whole. This includes three interrelated analytical undertakings:

The customer economic impact analysis assesses how current electricity tariffs, metering, and billing arrangements for DPV compensation, DPV system prices, and solar energy resources influence commercial and industrial customer decisions to invest in DPV technology.
The utility revenue impact analysis assesses the short-term financial impacts of DPV generation, with a focus on state-owned utility PLN's net revenues.
The jobs and economic impact analysis access the direct and indirect workforce and economic impact of DPV deployment in Indonesia.

Decision-makers can use this information to determine how to balance DPV customer, utility, and broader social priorities going forward.

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