At BECIS, We Are Committed to Driving Sustainable Transformation And Empowering Businesses to Thrive in a Low-Carbon Future – Binu George, Business Development Director & Country Manager – BECIS Indonesia

Key Highlights:

• The past decade has witnessed remarkable progress in solar photovoltaic (PV) technology and the dynamics of economics of scale.
• Solar PV’s accessibility and rapid commissioning make it a standout option for anyone with available space.
• The abundance of solar resources in Indonesia presents a vast opportunity for solar PV installations nationwide

1. Based on your extensive experience in the renewable energy sector in Southeast Asia, could you provide insights into the current state of the solar market in the region? This includes key trends, challenges, and opportunities.

SouthEast Asia, with a quarter of the world’s population, is poised to lead the battle against climate change through renewable. Indonesia, in particular, stands out due to its substantial solar energy potential, estimated to be around 20 TWp and its economic growth. The country has committed to gradually phasing out coal-fired power plants by 2050, aligning with regional efforts towards a renewable energy transition. Despite delays attributed to concerns such as oversupply and regulatory uncertainty, there is optimism driven by increasing demand and collaborative efforts among stakeholders.

To capitalize on this momentum, it is essential to establish conducive regulatory frameworks and incentives that encourage consumer participation and stimulate market demand. By doing so, not only can the adoption of solar photovoltaic (PV) systems be accelerated, but it can also pave the way for a more sustainable energy landscape in Indonesia, fostering economic growth and environmental stewardship. 

2. In your role managing commercial and industrial solar PV projects, what significant changes or advancements have you noticed in project execution and the adoption of technology over the years?

The past decade has witnessed remarkable progress in solar photovoltaic (PV) technology and the dynamics of economics of scale. Solar PV has transitioned into a commodity in the global market, driving significant cost reductions and rendering solar PV projects increasingly accessible to businesses.

Central to this transformation are the technological strides made in enhancing PV module efficiency and performance. For project developers like BECIS, these advancements are game-changers, as they bolster the feasibility and profitability of long-term projects, specially in regions where fossil-powered utility tariffs are heavily subsidized. The continuous enhancement of PV technology ensures sustained performance and benefits throughout the operational lifespan of projects, which often exceeds 25 years.

In addition to technological advancements, there has been a gradual but noteworthy effort by governments to establish policies and regulatory frameworks supportive of renewable energy projects. These initiatives are fundamental in fostering market growth and providing the necessary framework for the widespread adoption of renewable energy technologies. Additionally, the availability of local talent has grown, enabling the simultaneous execution of multiple projects.  Furthermore, the availability of skilled professionals within the region enables efficient project execution and management, reducing dependency on external resources and enhancing project feasibility. This synergy between technological innovation and local expertise creates a conducive environment for investors, as it minimizes risks and maximizes the potential for successful project implementation. 

3. Can you discuss the competitive landscape of the solar energy sector in Southeast Asia? How do you navigate challenges such as regulatory frameworks, market saturation, and emerging competition?

As the industrial manufacturing sector gravitates towards Southeast Asia with a focus on emissions reduction, renewable solutions, particularly solar PV, become increasingly vital. Solar PV’s accessibility and rapid commissioning make it a standout option for anyone with available space. However, the saturated solar industry sees developers prioritizing business opportunities over value addition. At BECIS, we aid customers in achieving carbon neutrality through innovative off-grid, on-grid, solar, bioenergy, and waste heat recovery projects. Our expertise in Energy as a Service (EaaS) fosters a consultative approach, moving beyond mere sales. The demand for EaaS solutions with diverse technologies is projected to rise, presenting BECIS with a significant opportunity. We remain adaptable to market shifts, ensuring our position at the forefront of sustainable solutions.

4. What do you identify as the primary drivers and barriers for the growth of renewable energy, particularly solar PV, in Southeast Asia, especially in the Indonesian market? How do you anticipate market dynamics evolving, and what implications might these changes have for industry stakeholders, including developers, investors, and policymakers?

High fossil energy consumption is the primary driver of a country’s need for energy transition, this followed by solar panel production and electric vehicle manufacturing shall remain the driving factor for solar PV  growth in Indonesia.

Organizations with high sustainability goals provide an additional impetus for renewable energy deployment, particularly in the Commercial and Industrial (C&I) segment. Escalating energy demand further boosts the adoption of alternative or renewable energy sources.

Government policies and incentives, such as feed-in tariffs and tax incentives, play a crucial role in driving the adoption and expansion of solar PV installations in Indonesia. However, inconsistency and uncertainty in policymaking in recent years have hindered widespread adoption, leading to uncertainty among project developers and investors. Collaborative efforts from stakeholders are essential to address this challenge, and despite current obstacles, we at BECIS remain optimistic about the future of the renewable energy market in Indonesia.

5. BECIS aims to assist clients in reducing CO2 emissions, minimizing energy costs, and enhancing energy supply security. How would you tailor your approach to meet these objectives in the Indonesian market?

At BECIS, we distinguish ourselves as the leading renewable developer offering a diverse range of solutions to our customers. In addition to Solar PV, we empower businesses to accelerate their decarbonization journey through innovative offerings such as Bioenergy, Cooling & Heating services, and Waste Heat Recovery projects. Our holistic onsite solutions enable our clients to establish a clear path towards achieving their long-term carbon neutrality objectives.

Through our Energy as a Service (EaaS) business model, we mitigate the challenge on our customers by taking charge of developing their non-core assets while they concentrate on their core competencies. Our team of sustainability experts collaborates closely with clients to identify opportunities for carbon reduction and deliver tangible commercial savings.

At BECIS, we are committed to driving sustainable transformation and empowering businesses to thrive in a low-carbon future.

6. What are the biggest opportunities and challenges in the Indonesian solar market? How would you capitalize on the opportunities and address the challenges?

The abundance of solar resources in Indonesia presents a vast opportunity for solar PV installations nationwide, a prospect that BECIS eagerly embraces. Additionally, there is a noticeable increase in environmental consciousness among the Indonesian community, prompting more customers to shift towards renewable energy sources to mitigate carbon emissions and contribute to global sustainability goals.

BECIS firmly believes that as customer awareness grows and the competitive business environment evolves, the renewable energy market in Indonesia will continue to thrive. With solutions extending beyond solar, we are poised to capitalize on this momentum. Leveraging our expertise, BECIS is positioned to play a crucial role in steering the country towards a more sustainable and environmentally friendly energy landscape.