Work

Declining costs make solar plus storage economical for industrial captive power

Year: 2025

Type: article

Abstract: Significant new coal-fired captive power generation is planned globally to support industrial applications. This is particularly true in Indonesia, where tens of GW of captive coal are in development to support metal processing at least in part for the manufacture of clean technologies such as batteries. However, recent cost declines in renewables and battery storage, along with performance improvements in battery cycle life, energy density, and critical-mineral intensity, have opened up new opportunities for economical electricity generation across the country. Here we assess the rapidly growing region of Kalimantan and show how, with targeted support policies, the co-location of solar PV generation with battery storage can achieve a Levelized Cost of Energy (LCOE) of 5.6-7.9 cents/kWh at present, varying with capacity factor and financing conditions, competitive with conventional captive coal generation for industrial applications. With a supportive policy and regulatory framework, the reduction of existing coal subsidies, and preferential financing terms, solar+storage can offer GW-scale potential as an economical alternative to new captive power plants, with a minimal land footprint, in Indonesia and other emerging economies.

Source: iScience

DOI: 10.1016/j.isci.2025.113763

Authors: Emilia Chojkiewicz, Nikit Abhyankar, Umed Paliwal, Amol Phadke

Institution: University of California, Berkeley

Language: English

Topic: Power Systems and Renewable Energy

Subfield: Energy Engineering and Power Technology

Field: Energy

Domain: Physical Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure, Climate action

Open Access status: gold

Estimated APC paid: $3,240