Ecobiz.asia – Indonesia’s state-owned electricity company PT PLN (Persero) is deploying solar power plants equipped with Battery Energy Storage Systems (BESS) as a natural hedging strategy to maintain power supply reliability amid the impact of El Niño on hydropower generation.
PLN President Director Darmawan Prasodjo said the strategy is intended to offset declining hydropower output during the dry season, when reduced water flows limit generation capacity.
“This is an immediate adjustment and addition, namely natural hedging, using solar power plants with Battery Energy Storage Systems,” Darmawan told reporters on the sidelines of Electricity Connect 2026 in Jakarta on Tuesday (Sept. 22, 2026).
He did not disclose the capacity of the solar power plants to be equipped with BESS.
Darmawan said the combination of solar power and battery storage would provide additional electricity when hydropower generation declines during the dry season.
“During the dry season, there will be additional energy from solar power plants with Battery Energy Storage Systems,” he said.
El Niño conditions have already affected hydropower generation in several regions, according to Darmawan. In South Sulawesi, hydropower capacity has declined by around 650 megawatts (MW) due to reduced water flows.
“With the current El Niño conditions, hydropower capacity has been significantly reduced. For example, in South Sulawesi, it has declined by around 650 MW,” he said.
The natural hedging strategy follows directions from Energy and Mineral Resources Minister Bahlil Lahadalia and the ministry’s Directorate General of Electricity, Darmawan said.
Beyond South Sulawesi, PLN is addressing the impact of El Niño in other regions, including Kalimantan, while strengthening power system management and resolving issues involving power plants under development in affected areas.
“We are addressing the challenges in other regions one by one,” Darmawan said.
“We are also improving our system management, including in several areas such as Kalimantan, which we are currently working to resolve,” he added. ***
