Indonesia Explores Lessons from India’s Low-Cost Solar Power Journey to Accelerate the Energy Transition

Jakarta, 12 February 2026 – Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), through the Ministry of Energy and Mineral Resources (MEMR)–GIZ Energy Programme, convened a high-level policy dialogue entitled “From Ambition to Affordability: Lessons Learned from India’s 3 Cents US/kWh Solar Journey” at Pullman Thamrin Hotel, Jakarta. The dialogue brought together senior policymakers from Indonesia and India to exchange experiences on advancing affordable, reliable, and sustainable utility-scale solar power as part of Indonesia’s energy transition agenda. The event was officially opened by the Honourable Ambassador of the Republic of India to the Republic of Indonesia, Mr. Sandeep Chakravorty, the Director of the GIZ Energy Programme, Ms. Lisa Tinschert, and the Head of the Human Resources Development Agency of the Ministry of Energy and Mineral Resources, Mr. Prahoro Nurtjahyo.  

In his remarks, Ambassador underlined that India’s achievement of solar tariffs at around three US cents per kWh was not merely the result of abundant sunlight, but of structural reform and regulatory clarity. He emphasized that unlocking solar potential requires enabling policies that provide certainty to investors and allow innovation to flourish within the power market. Echoing this perspective, Lisa Tinschert noted that the idea for the dialogue was inspired by Indonesia’s own leadership. “When Minister of Energy and Mineral Resources Bapak Bahlil highlighted India’s achievement of three US cents per kilowatt hour, we saw an opportunity to facilitate a structured knowledge exchange. GIZ stands ready to support Indonesia in translating ambition into affordable and reliable implementation,” she said.  

Meanwhile, Head of MEMR’s Human Resources Development Agency stressed that Indonesia’s direction is already clear. “We have a Net Zero Emissions target by 2060, the RUPTL as our operational roadmap, and President Prabowo’s commitment to developing 100 GigaWatts of solar power. Learning from India’s experience, particularly the implementation led by Pak Manu and his team, provides us with a concrete reference point to identify what can be adapted and strengthened in Indonesia,” he affirmed. 

The dialogue was organised under the MEMR–GIZ Energy Programme, which supports the Government of Indonesia in achieving its energy and climate policy targets, particularly in accelerating the expansion of variable renewable energy within the national power system. This effort aligns with the Vision of Indonesia Emas 2045 and the national commitment to reach Net Zero Emissions by 2060 or sooner.  

The dialogue featured two senior policymakers from the Government of Madhya Pradesh, India: Mr. Manu Srivastava, Additional Chief Secretary for New and Renewable Energy, and Mr. Aman Bir Singh Bains, Managing Director of Madhya Pradesh Urja Vikas Nigam Limited. Both speakers shared first-hand experience on the drivers of cost reductions, the evolution of procurement and risk-sharing mechanisms, and policy sequencing that has enabled large-scale solar deployment. 

The event brought together 62 participants, including officials from the Coordinating Ministry for Economic Affairs, the Ministry of Energy and Mineral Resources, the Ministry of Finance, the Ministry of National Development Planning, as well as representatives of PT PLN (Persero). Discussions focused on identifying lessons that are relevant to Indonesia and aspects that may need to be adapted to national power system characteristics. 

Strengthening Indonesia’s Power System for Sustainable Growth  

Indonesia’s power system plays a strategic role in enabling broader national development agenda. Affordable, reliable, and sustainable electricity is foundational to economic growth and job creation, strengthening industrialisation and value-added activities, poverty reduction, and social equity. At the same time, growing middle-class aspirations and Indonesia’s ambition to strengthen national sovereignty and regional leadership require a power system that is increasingly resilient, efficient, and adaptive. 

This transformation pathway is reflected in the Electricity Supply Business Plan (RUPTL) 2025–2034, which positions renewable energy as a key pillar of future capacity expansion. Of the planned renewable energy capacity additions, solar power represents the largest share, with an allocation of 17.1 GW, significantly above the current installed capacity of around 1.5 GW, which is largely dominated by rooftop systems and one large-scale floating solar PV project. Beyond the RUPTL, the Government of Indonesia has also articulated a longer-term ambition to develop up to 100 GW of solar power capacity. 

Nevertheless, the key challenge lies not only in setting ambitious targets, but in translating policy ambition to large-scale and cost-competitive implementation. This includes questions related to procurement design, risk allocation, land and grid readiness, long-term contractual certainty, and the sequencing of policies and investments that most effectively reduce tariff while improving investment attractiveness. 

What Can Indonesia Learn from India’s Solar Experience  

In this context, India’s experience offers relevant insights for Indonesia. Government experts from India shared that the country’s solar journey evolved from climate-driven ambition into a strong economic case, with solar tariffs now significantly lower than coal-based power. The experts shared the experience in different types of Solar PV: Large scale Ground Mounted Solar PV, roof top Solar PV, Floating Solar PV and Agricultural solarisation.   Recent competitive auctions have achieved tariffs of around 2.15 Indian rupees per kWh (approximately 2.35 US cents), secured under 25-year inflation-proof contracts. 

The key driver for the cost reduction has been the principle of “de-risking” the projects from uncertainties for investors and lenders. The principle of de-risking has been common irrespective of the scale of projects. Some of the important components of derisking projects include large project aggregations, well-structured tender documents, intensive pre-bid meetings, transparent e-auctions, inflation proof 25-year contract and Government backed payment security mechanisms. The de-risked projects attracted strong competition from international and domestic players further contributing to reduced costs. 

The experts suggested that Indonesian government could focus on piloting solar PV projects applying the principles of “de-risking” from Indian experience while contextualising the details as per context in Indonesia. Once there is demonstrated proof of low-cost solar PV projects across different scales, this would create a “virtuous” cycle enabling rapid energy transition in Indonesia.  

The dialogue concluded with a shared understanding that achieving affordable and reliable solar power requires an integrated approach across policy, regulation, power system planning, and investment. In this context, the experts reaffirmed the Government of India’s commitment to partner with GIZ in providing steadfast support to help unlock the potential for large-scale solar PV deployment in Indonesia. Lessons drawn from India’s experience are expected to inform future policy formulation, enhance the competitiveness of solar energy, and contribute to accelerating Indonesia’s energy transition.