AESI sees solar, battery storage gaining traction in Indonesia’s mining sector

By Dominikus

The Indonesian Solar Energy Association (AESI) sees growing opportunities for solar power and battery energy storage systems (BESS) in Indonesia’s mining sector as operators and industrial zones face increasing pressure to decarbonize captive power supplies, a senior association official said.

Speaking at the Coal and Energy Transition Forum during the Indonesia Critical Minerals Conference 2026 in Jakarta on June 5, AESI Vice Chairman for Research and Technology I Made Aditya Suryawidya said many mining operations are located in areas with limited access to the main grid operated by state utility PT PLN, forcing them to rely on captive power plants or electricity business areas outside PLN’s service network.

He said mining companies, including nickel producers, would need to gradually increase the share of renewable energy in their power mix as part of broader decarbonization efforts.

“They need to introduce electricity, perhaps not 100%, but 20% or 10% coming from renewable energy,” Made said.

According to Made, several AESI members are already in discussions with mining operators on solar power deployment, while some projects have entered the installation phase.

He said one AESI member recently reached financial close for a 200-megawatt-peak (MWp) solar project equipped with a battery energy storage system to supply electricity within an existing electricity business area, although he declined to identify the company or project location.

“These are the kinds of projects that we are currently experiencing and also will further expand in the Indonesian market,” he said.

Indonesia’s mining industry has emerged as a key market for renewable energy developers, as many mining and mineral processing operations, including smelters, depend on captive power generation.

Made said demand for green electricity is increasingly being driven by parent companies and major shareholders seeking to incorporate decarbonization targets into their operations.

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He added that solar photovoltaic (PV) technology is well suited to Indonesia’s equatorial location, while battery storage can support greater solar penetration by smoothing output, reducing peak demand and improving system reliability.

Future solar projects, whether developed under PLN tenders or for captive power applications, are likely to incorporate battery storage systems, enabling a higher share of renewable energy in the electricity mix, he said.

AESI is currently focusing on several key market segments, including PLN’s 2025–2034 electricity supply business plan (RUPTL), the government’s ambition to install 100 GW of solar capacity, cross-border solar projects aimed at exporting electricity to neighboring countries such as Singapore, and the growing green data center market.

Made noted that PLN’s latest 10-year power development plan includes an additional 17 GW of solar PV capacity, while the broader 100-GW solar initiative has attracted increasing interest from developers.

He said investor appetite for solar projects has risen significantly over the past one to two years, with new developers and companies seeking to enter the market.

 “Industrial decarbonization is essential in achieving Indonesia’s 100-gigawatt solar ambition and program,” he said.

Editing by Reiner Simanjuntak