Designing a System Dynamics Model to Analyze the Effect of Photovoltaic Supporting Policies in Indonesia

Universitas Indonesia, Depok, Indonesia
Email: romadhani.ardi@ui.ac.id (R.A.); valentinus.alvin@ui.ac.id (V.A.); yohanes.elia11@ui.ac.id (Y.E.P.)
*Corresponding author
Manuscript received July 30, 2023; accepted March 13, 2024; published September 25, 2024

Abstract—The demand of the global climate change issue make Indonesia need to increase the proportion of renewable energy in the national energy mix by 23%. With the Electricity Supply Business Plan (RUPTL), the construction of renewable energy power plants has been targeted to have installed capacity until 2028. Photovoltaic (PV) as a source of renewable electricity from solar power still has obstacles to developing its installed capacity. This study aims to design a Feed-in Tariff (FiT) policy model that supports investment in renewable energy projects, so that the impact of budget availability by the government and environmental impacts can be anticipated by the government. By using a system dynamic and historical data on installed PV capacity, this study explains the effect of the feed-in tariff policy on the development of installed PV capacity and the contribution of PV to reducing CO2 gas emissions and also the determinants of this effect. This study reveals that the feed-in tariff policy will have an impact on increasing the growth of PV project investment and the achievement of the RUPTL target for installed PV capacity by 2028. Two policies, rooftop solar PV and capital subsidies are being tested on a model to demonstrate the sensitivity of installed PV capacity and the contribution of reducing CO2 gas emissions due to the tendency to invest in PV.

Keywords—system dynamics, feed-in tariff, photovoltaic, renewable energy

Cite: Romadhani Ardi, Valentinus Alvin, and Yohanes E. Purwanto, "Designing a System Dynamics Model to Analyze the Effect of Photovoltaic Supporting Policies in Indonesia," International Journal of Sustainability in Energy and Environment, vol. 1, no. 1, pp. 19-25, 2024.

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).