Estimating Effectiveness and Efficiency of Solar Energy Policy for Indonesia: A Hybrid Agent-Based Model Analysis


We estimate the impacts of four renewable energy policy interventions to photovoltaic (PV) market size, government expenditure, economic growth, and environment. For this reason, we develop an agent-based model dedicated to capturing the specific economic and institutional features of developing economies focusing on Indonesia. We undertake an integrated approach to ABM by combining input-output analysis, life-cycle analysis, socio-economic data, and urban-rural analysis to obtain a comprehensive assessment. The result is that we recommend abolishing PV grant policy in rural electrification programs. As a substitute, the government should encourage PV industry to improve production efficiency and provide after sales service. The government then should arrange financing scheme for the PV investment. Both policies will create PV market in rural area for 57% and 81% respectively of rural households without electricity. Additionally, the government can allocate 30% capital subsidy and 5% interest subsidy to increase the market size to 84%. In contrast, we found policies of feed-in tariff, existing tariff and net-metering cannot create PV market in urban households at least until 2020.

Author Information
Muhammad Indra al Irsyad, Ministry of Energy and Mineral Resources, Indonesia
Anthony Halog, University of Queensland, Australia
Rabindra Nepal, Charles Darwin University, Australia
Deddy Koesrindartoto, Institut Teknologi Bandung , Indonesia

Paper Information
Conference: IICSEEHawaii2018
Stream: Clean and Affordable Energy

This paper is part of the IICSEEHawaii2018 Conference Proceedings (View)
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Posted by James Alexander Gordon