Grid code standards key to unlock Indonesia’s solar potential

A Danish-Indonesian research group has analyzed the challenges Indonesia faces in implementing its energy transition and concluded that the country must update its grid codes (GCs) to integrate higher shares of renewable energy and meet its ambitious solar deployment targets.

“The lack of robust, updated grid-code standards in Indonesia is indeed a major bottleneck for renewable energy deployment,” the study’s lead author, Majid Ali, told pv magazine. “However, unlocking the full potential of clean energy will also require coordinated action across grid investment, regulatory reform, financing, and institutional strengthening. Introducing and enforcing grid codes would represent a foundational and positive step, but it should be part of a broader systemic transformation rather than a standalone solution.”

In the study, the researchers identified the technical requirements needed to integrate large volumes of renewable generation at the distribution level and assessed the advantages and limitations of the proposed grid code. They also compared Indonesia’s planned grid code with existing standards, particularly those applied in Denmark and those developed by the Institute of Electrical and Electronics Engineers (IEEE).

“This comparison highlights the strengths and weaknesses of the Indonesian framework, showing how it aligns with international best practices and what adjustments are necessary to support the country’s renewable energy ambitions,” Ali said.

The proposed grid code includes reactive power compensation mechanisms and harmonic analysis to assess grid hosting capacity and ensure that growing renewable penetration can be managed without compromising system reliability.

It would also introduce an information and communication technology (ICT) framework to enable real-time data exchange for monitoring and control. In addition, the code would require low-voltage ride-through (LVRT) and high-voltage ride-through (HVRT) capabilities to ensure continued renewable energy operation during temporary voltage disturbances.

Further recommendations include protection systems for islanding, allowing sections of the grid to operate independently in the event of a main grid failure, as well as DC current injection control to keep DC content below 0.5% of nominal current levels.

The researchers also recommend incorporating power factor control, automatic synchronization, smart metering, and energy management technologies to increase system flexibility. Controllable loads and demand-side management (DSM) are identified as additional tools to improve load control and system responsiveness.

The study also includes a case study of the Lombok Island power system, which currently has an average electricity demand of 265 MW and is expected to see significant demand growth in the coming years.

The research team presented its findings in the paper “Grid code requirements for the integration of renewable energy sources in Indonesia—a review,” published in Renewable Energy Focus. It included academics from Denmark's Aalborg University, Indonesia's power utility PT PLN (Persero), and 

Indonesia’s National Energy Policy is aiming to reach up to 108.7 GW of solar capacity by 2060. Earlier this year, the Indonesian government launched an initiative to deploy 100 GW of solar, consisting of plans for 80 GW of 1 MW solar minigrids with storage, alongside 20 GW of centralized solar power plants.

The Institute for Essential Services Reform (IESR) has estimated Indonesia has a potential solar energy capacity ranging from 3,300 GW to 20,000 GW. The country’s cumulative solar capacity surpassed 700 MW in August 2024.

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