GIZ: Indonesia Faces 3.8 GW Annual Renewable Buildout Gap as Procurement Stalls

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Ecobiz.asia – Indonesia needs to accelerate annual renewable power additions by around 3.8 GW to stay on track with its latest electricity supply plan, after new renewable capacity averaged only about 0.4 GW a year between 2021 and 2024, according to GIZ Indonesia.

The average would need to increase to around 4.21 GW annually to deliver the renewable capacity targeted under Indonesia’s 2025-2034 electricity supply plan.

Imam Askolani, Energy Advisor at GIZ Indonesia/ASEAN, presented the assessment during Indonesia Sustainable Energy Week (ISEW) 2026 in Jakarta on Thursday (August 20, 2026).

The 2025-2034 RUPTL calls for 17.1 GW of new solar capacity, 11.7 GW of hydropower, 7.2 GW of wind, 5.2 GW of geothermal and around 0.9 GW of bioenergy. Delivering the pipeline will require Indonesia to move from relatively modest annual additions to several gigawatts of new renewable capacity reaching commercial operation each year.

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A GIZ study conducted between October 2024 and August 2025 identified bottlenecks across almost every stage of renewable-energy procurement.

At the prequalification stage, the number of companies included on PLN’s selected-provider list, known as the DPT, has remained limited or stagnant, while relatively few projects have progressed to tender.

Some projects have also stalled before procurement begins. GIZ identified cases where project initiation had not started, prefeasibility studies were delayed, or projects had been initiated but had not progressed to the tender stage.

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Delays continue after procurement starts, with the study identifying failed tenders and prolonged or unsuccessful commercial negotiations. These problems can postpone the signing of power purchase agreements (PPAs), further delaying project development.

Even after a PPA is signed, developers can face difficulties reaching financial close, followed by potential delays during construction. GIZ’s findings therefore point to bottlenecks across the entire project-development chain rather than at the tender stage alone.

Solar power illustrates the challenge. GIZ said actual solar PV additions have consistently remained below levels targeted in earlier electricity plans, even as the latest RUPTL significantly increases Indonesia’s solar ambitions.

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The procurement bottlenecks could also affect the government’s broader ambition to develop 100 GW of solar capacity. Meeting that goal would require not only more developers and financing, but also a procurement system capable of moving projects more quickly from prequalification and feasibility studies through tendering, PPA signing, financing and construction.

Indonesia recorded US$2.4 billion (Rp42.8 trillion) in investment realization in new and renewable energy and energy conservation in 2025, while installed renewable generation capacity reached 15.63 GW.

With the latest RUPTL setting a much larger renewable pipeline, the pace at which projects reach commercial operation will increasingly determine whether Indonesia can meet its planned capacity additions. ***

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