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A Lesson of Solar Energy Development in Malaysia and Indonesia

Author

Listed:
  • Eko Adhi Setiawan

    (Tropical Renewable Energy Center, Faculty of Engineering, Universitas Indonesia, Kampus UI, Depok 16424, Indonesia; & Energy System Engineering, Faculty of Engineering, University of Indonesia, Kampus UI Depok, Depok 16424, Indonesia)

  • Mufty Putratama Sumarto

    (Electrical Engineering, Faculty of Engineering, University of Indonesia, Kampus UI Depok, Depok 16424, Indonesia)

  • Mohamad Zhafran Hussin

    (School of Electrical Engineering, College of Engineering, Universiti Teknologi MARA, Cawangan Johor, Kampus Pasir Gudang, 81750 Masai, Johor, Malaysia)

Abstract

To address environmental issues, Indonesia aims to achieve a 23% renewable energy share by 2025 and 31% by 2050. According to National Energy Plan (RUEN), the target for solar energy installed capacity is 6.5 GW by 2025 and 45 GW by 2050. Looking at one of Indonesia neighboring country, Malaysia, have a significant growth on solar energy as a result from their policy framework, role of national electricity company, and the PV industry condition. Therefore, this paper will be projecting Indonesia's progress on solar energy target in RUEN using Malaysia's approach Tenaga Nasional Berhad (TNB) initiatives and using Business as Usual (BAU) scheme, in which the result shows that achievement on RUEN target still below 22% for both schemes.

Suggested Citation

  • Eko Adhi Setiawan & Mufty Putratama Sumarto & Mohamad Zhafran Hussin, 2024. "A Lesson of Solar Energy Development in Malaysia and Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 401-411, January.
    • Handle: RePEc:eco:journ2:2024-01-43
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    References listed on IDEAS

    as
    1. Alaa A. F. Husain & Maryam Huda Ahmad Phesal & Mohd Zainal Abidin Ab Kadir & Ungku Anisa Ungku Amirulddin & Abdulhadi H. J. Junaidi, 2021. "A Decade of Transitioning Malaysia toward a High-Solar PV Energy Penetration Nation," Sustainability, MDPI, vol. 13(17), pages 1-16, September.
    2. Burke, Paul J. & Widnyana, Jinnie & Anjum, Zeba & Aisbett, Emma & Resosudarmo, Budy & Baldwin, Kenneth G.H., 2019. "Overcoming barriers to solar and wind energy adoption in two Asian giants: India and Indonesia," Energy Policy, Elsevier, vol. 132(C), pages 1216-1228.
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    More about this item

    Keywords

    Solar Energy; National Energy Plan (RUEN); Policy Framework; National Electricity Company; PV Industry;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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