President calls for research into solar energy 

Wednesday, 2 September 2009

The Jakarta Post

President Susilo Bambang Yu-dhoyono has ordered that research and development into solar-cell energy be explored in Indonesia, and announced that a team will write up plans for the future of this industry nationwide.

Managing director of state-owned solar cell producer PT LEN Industri, Wahyuddin Bagenda, said following a meeting with the President in Jakarta on Tuesday that SBY had supported moves for increasing the production of efficient solar-cell energies.

“... And he [SBY] is hoping that the price will be reasonable for the public. That was the most important issue.” Wahyuddin said in a press conference at the Presidential Office.

LEN has installed a solar-cell power plant with a capacity of 6 megawatts. The energy produced from this renewable resource is available at US$3 per watt.Wahyuddin said the capacity fell short of the government’s actual requirement of 10 MW.If LEN increases its capacity it will not only assist the government in fulfilling its energy needs, but reduce the overall price.

“Based on our analysis, if we increase the capacity of the plants to 50 MW, we’ll be able to sell the solar cells at $1.2 per watt. The global price now stands at around $1.7 per watt,” he said.

The Bandung-based firm would need around $17 million worth of investment to develop a plant with a capacity of 50 MW. Wayhuddin said he believed demand for solar energy in Indonesia would continue to grow in the future, as global trends continue to show rising popularity.

Most solar cells produced by LEN have been purchased by the government for its programs, including those under the Energy and Mineral Resources Ministry and the office of the State Minister for Disadvantaged Regions, Wahyuddin said. “The private sector only absorbs about 10 percent of our [solar cell] production.”

If LEN finally manages to boost its installed capacity to 50 MW, it may export the excess energy resources overseas. Energy and Mineral Resources Minister, Purnomo Yusgiantoro, said the government was set to develop solar energy in the future. With the private sector having shown very little interest in the resource, the development of this energy industry had been slow, he said.

“The cost per unit of these solar cells are expensive, so we will have to find a way to fund the industry,” Purnomo said. The government will likely seek external funding to finance the renewable energies sector, he said. Wahyuddin said labor and raw materials were the main factors contributing to the success of the development of solar energy in Indonesia.

He said Indonesia had qualified professionals supporting the development of this industry, but still heavily relied on other countries to import the raw materials needed to produce the solar cells.