Credit: Ministry of Energy and Mineral Resources.

JAKARTA (TheInsiderStories)–The Indonesian government will immediately issue a regulation regarding rooftop solar panels to allow consumers selling excess electricity to PT Perusahaan Listrik Negara (Persero), a state official said on Wednesday (1/08).

Energy and Mineral Resources Minister (EMR) Ignasius Jonan said the regulation will allow PLN’s customers in all segment excluding industries to install rooftop solar panels. PLN customers in this segments are estimated at two-thirds of total customers.

“The regulation will be issued in 1-2 weeks, we will conduct a large-scale socialization,” he added, as quoted in the Ministry of Energy and Mineral Resources’s official website.

In addition, Jonan said, the regulation will allow solar panel users to sell the excess electricity to PLN at certain regulated price. As a result, the consumers will gain savings with this scheme.

This regulation is an effort to catch up with Electricity 4.0 that integrate all activities from power plants to improve efficiency, sustainability, energy saving, and safety. In the Electricity 4.0, the power producers are no longer dominated by state-owned and major companies, even consumers can simultaneously act as producers or prosumers.

Director General for Electricity Andy Noorsaman Soomeng earlier said the current electricity supply is sufficient to make Indonesia move forward to Electricity 4.0 as the country has 60.8 gigawatts installed capacity with electrification ratio of 96.63 percent by April 2018. The government also targets to add power plants capacity by 56 gigawatts and 63,855 kms of electricity transmission, and 151,424 MVA substation by 2027.

However, Sommeng added, Indonesia has not updated yet the grid code to accommodate intermittent power plants. Although the grid code update is the main element to boost Electricity 4.0.

Indonesia’s power sector is currently trapped in Electricity 2.0, which dominated by fossil energy sources including coal-fired power plants (57.22 percent), gas power plants (24.82 percent), and diesel power plants (5.81 percent) by the end of 2017.

The Indonesian government should move forward to Electricity 4.0 by boosting renewable energy in addition to upgrade high-technology. Indonesia has so far been moving at a snail’s growth in the development of renewable energy that currently only contributes 13 percent of the total power plants capacities.

However, the country set renewable energy target by 23 percent in 2025 or equivalent to 30,000 megawatts of power generated from geothermal, hydro, wave, and solar energy. The government plans to build 14,912 megawatts of renewable energy by 2027.

In addition, the renewable energy is important as the country’s energy demand will increase to 682.3 million TOE in 2050 with the annual average assumption energy demand of 4.9 per cent in 2015-2050, According to the National Energy Council. Meanwhile, fossil fuel estimated to be only available until 2030 for petroleum, another 50 years for the natural gas, and 84 years of coal.