On one side are thousands of islands suffering from long-term power shortages, while on the other side, the cost of diesel power generation is high and pollution is severe; Indonesia is breaking this predicament with an unprecedented energy revolution.
Indonesian President Prabowo Subianto recently signed the "Implementation Regulations for the Village Cooperative Million Photovoltaic Program," announcing the launch of the world's largest village-level solar energy storage network construction project.
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This grand plan will build photovoltaic and supporting energy storage systems with a total installed capacity of 100GW in 80,000 villages across Indonesia over the next five years, providing clean electricity to approximately 60 million people who have long been troubled by electricity shortages or unstable power supply.
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01 The world's largest village-level solar storage network
As the "Archipelago Country," Indonesia consists of about 17,000 islands, and many remote villages still lack stable electricity access to this day.
These regions have long relied on diesel power generation, which is costly and heavily polluting.
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The Indonesian government's "Village Cooperative One Million Photovoltaic Plan" provides a solution: to build a dual-track system of "80GW distributed microgrids + 20GW centralized power stations."
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In terms of distributed systems, Indonesia will deploy a set of "1MW photovoltaic + 4MWh energy storage" microgrid systems in 80,000 villages.
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These microgrids will be independently operated by village-level cooperatives to achieve energy self-sufficiency.
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The first batch of 10,000 villages is scheduled to be connected to the grid in August 2025.
Once fully constructed, the energy storage capacity will reach 320GWh, making it the largest single distributed energy storage market in the world.
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02 The Economic Account of Energy Storage
"Photovoltaics are the starting point, but supporting energy storage is the key to achieving 24-hour power supply and economic sustainability." Indonesian Minister of Energy and Mineral Resources Bahriel pointed out the critical value of energy storage at the signing ceremony.
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According to calculations, the levelized cost of electricity for the solar storage system is only $0.12-0.15/kWh, which is 40%-70% lower than the diesel generation cost of $0.20-0.40/kWh.
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During the 25-year operational period, this system can save more than 30% of energy expenses for rural households and small micro-enterprises, while also reducing dependence on diesel imports.
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The energy storage system stores electricity during sunny periods and releases power at night or on rainy days, ensuring that the village-level microgrid achieves 24-hour uninterrupted power supply, completely changing the previous situation of photovoltaic power generation relying on weather conditions.
03 Government-Enterprise Collaborative Promotion Model
This large plan adopts a collaborative model of "government-led, enterprise participation, and cooperative operation."
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The Indonesian Ministry of Energy and Mineral Resources, the Ministry of Economic Coordination, and the Ministry of Food Coordination jointly lead, with the state-owned electricity company PLN responsible for grid access and scheduling.
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On the policy level, the Indonesian government issued the "MEMR 5/2025 Regulation," extending the renewable energy purchase agreement period to 30 years and opening up foreign investment in the "Build-Own-Operate" model to ensure long-term project returns.
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The Indonesian National Consumer Protection Agency has coordinated a special fund of 1 billion USD, prioritizing support for islands and remote areas.
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04 The Huge Opportunities in the Energy Storage Market
This plan brings trillion-level market opportunities for global energy storage companies.
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The Asian Development Bank stated that it will provide technical assistance and low-interest loans, and photovoltaic companies from countries such as China and Japan are also negotiating equipment supply and cooperation.
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According to Huachuang Securities analysis, Chinese solar energy and storage companies that have laid out or own projects in Indonesia are expected to benefit, including energy storage-related companies such as DeYe Co., Airo Energy, and GoodWe, as well as EPC-related companies like Sente Co. and Yongfu Co.
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Previously, Yuanjing Intelligent has collaborated with a large power company in Indonesia to build the country's first large-scale photovoltaic + energy storage integrated project in West Java Province—a 50MW photovoltaic power station paired with a 14MWh lithium battery energy storage system.
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This project successfully achieved multiple goals of grid reliability, operational efficiency, and emission reduction.
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05 Challenges and Responses
Despite the broad prospects, this grand plan also faces numerous challenges.
The well-known Indonesian energy think tank "Institute for Basic Service Reform" pointed out that the goal of building 100GW of photovoltaics within five years is "extremely challenging."
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Each village-level project requires 30-50 skilled workers from preparation to operation, while the current total number of professionals in Indonesia capable of constructing photovoltaic and energy storage projects is insufficient and unevenly distributed.
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To address the talent shortage, the Indonesian Ministry of Energy and Mineral Resources has launched the "Thousand Villages Technical School" program in collaboration with universities, focusing on training village-level operation and maintenance engineers.
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At the same time, design a mixed financing plan to attract private capital participation.
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The significance of this plan goes far beyond the commercial realm.
After the project is fully operational, it can reduce carbon dioxide emissions by more than 80 million tons each year, equivalent to planting 2.2 billion trees.
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At the same time, the demand for diesel power generation is expected to decrease by 60%, saving the country approximately 4 billion US dollars in foreign exchange expenditures each year.
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By activating the grassroots energy autonomy, village cooperatives will gain diversified income from electricity sales, operation and maintenance services, and it is expected to create over 500,000 green jobs.
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"This plan is not only about energy equity, but also a key to inclusive economic growth," said Minister of Economic Coordination Airlangga.
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With the first batch of ten thousand villages set to welcome brightness in August 2025, Indonesia's energy revolution has already begun. This is not just an energy transition, but also a socio-economic transformation that concerns the quality of life for tens of millions of people.
Photovoltaics can capture sunlight, but only energy storage can retain sunlight, allowing clean electricity to continue illuminating every corner of the archipelago after nightfall.
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