Opportunity Assessment of Virtual Power Plant Implementation for Sustainable Renewable Energy Development in Indonesia Power System Network

Abstract

Renewable energy sources have become one of the important roles for sustainable energy development. One of the promising mechanisms to deploy renewable energy is through a Virtual Power Plant (VPP), which can integrate various distributed renewable energy resources into a single controllable and deployable entity. This paper examines the opportunity for VPP adoption in Indonesia, which investigates the minimum implementation criteria, provides a gap analysis for VPP implementation, and proposes recommendations for VPP implementation in Indonesia. The implementation criteria are obtained from the literature review, including the lessons learned from other countries, and categorized into four aspects: regulatory, technical, economic, and social. The gap analysis is performed by evaluating the current state of Indonesia’s utility network in correlation with the VPP minimum implementation criteria and then provides a scoring matrix for each criterion. Lastly, the recommendations are arranged to narrow these gaps, organized into ten key focus points, and divided into four phases, initiation, preparation, piloting, and deployment, across a ten-year timeframe.