Distributed Generation Potential in Indonesia

Abstract

Although traditionally, the development of large power plants may increase the economical efficiency of electricity production, however, currently, such large-scale expansion of large power plant is facing many of both natural and artificial constraints. In consequence of this, large-scale centralized power generation is now challenged considerably by small-scale decentralized power generations that furthermore, along with the new development in generation technologies, including renewable generation technologies, tend to be connected in the distribution grids. In Indonesia, due the economic crisis initiated on 1998, the expansion of electrical power plant on large scales is becoming financially even much more difficult. On the contrary, the demand of electricity is still increasing. Therefore, to expand the electrical generation in form of distributed generation may be a potential solution for this problem. Therefore, this paper presents an idea of the potential development and implementation of distributed generation in Indonesia.