Gas could help solar shine in eastern Indonesia

New Indonesian energy price regulations will boost coal use but could offer gas an opportunity to support solar in the country’s east
By Damon Evans 8 March 2017
The Indonesian government hopes to encourage the use of renewables in remote provinces. (Flickr, Bart Speelman)

New regulations governing renewable energy pricing in Indonesia will see coal-fired power generation dominate the fuel mix for at least another decade. But gas could complement solar if the renewable energy source replaces costly oil-fired generation in Indonesia’s eastern regions. 

The government hopes the regulations, introduced last month, will encourage renewable energy deployment in the more remote and under-electrified provinces of Kalimantan, Papua, Sulawesi, Maluku and Timor – which currently rely on costly diesel-fired power.

The new regulations are designed to lower the average cost of electricity...

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