The island geography of Indonesia makes it a difficult country to power. While Java enjoys a stable supply of electricity, many eastern islands don’t have access to electricity at all, and those that do tend to suffer from reliability and sustainability issues.

In fact, even places like Java and Bali, which have electricity around the clock, are quite vulnerable to the effects of major events. We saw this in 2019, when the entire Western Java area – a critical economic area – experienced a 6-12 hour blackout.

Then there are the sustainability issues. A 2020 McKinsey study found that Indonesia has around 400 gigawatts of renewable energy potential, but we currently tap less than 2%. Only 12% of our total power comes from renewable energy, which falls behind others in the region: the Philippines is already at 20%, while Vietnam is moving forward with a number of big solar projects.

In short, the challenges for Indonesian power are big… but so too are the opportunities. And at Siemens, we believe our smart grid technology is key to capitalizing on them.

The what, how and why of smart grid technology

Smart grid isn’t a single technology – it’s a broad term that encompasses a number of technologies under the one banner.

Put simply, a smart grid is an electricity grid with a high level of automation and digitalization. The endless potential of smart grids is exciting, from two-way electricity flow, through self-healing capabilities, to automated power regulation. It’s a power grid with its own brain, that not only takes care of itself, but is also far more efficient and effective in delivering power to those who need it.

At Siemens, we see smart grid tech solving many of the challenges faced by Indonesia’s energy sector. It would improve reliability, as smart grids are able to forecast problems, automatically managing grid operations when there is a problem or fault, and using ‘adaptive defense schemes’ or ‘fast power-based load shedding’ to restore balance and ensure supply.

This solution works just as effectively at a small scale as it does at a large scale. Microgrid technology could be employed on remote Indonesian islands, which could combine local energy sources with existing loads to feed a small grid, all of which is controlled by a central microgrid controller. This intelligent controller could manage energy generation from the local (and ideally renewable) integrations, ensuring seamless power supply with or without the connection to the utility grid. Such a system is also incredibly reliable and sustainable.

Ensuring energy supply improves lives

Smart grid technology could have an enormous impact on the lives of Indonesians. I think we can agree that these days electricity could almost be considered a human right – it affects every aspect of our lives, and we are ultimately reliant on it.

By providing reliable electricity, we will seriously improve quality of life for those who have limited or unreliable electricity. Insufficient energy resources in remote areas currently mean scheduled, rolling blackouts. A constant supply of electricity would make things far easier for locals, while seriously boosting an area’s economy through greater opportunity.

While the impact might not be felt as directly, sustainability is also hugely important. Java and other big cities are currently reliant on coal and oil power plants, but the environmental impact of these ‘conventional’ technologies, whether in terms of modern-day air quality or future sea level rise, is severe. Therefore, we can’t prioritize reliability over sustainability – both are critical.

Sustainability is one of the biggest benefits of integrating smart grid technology, as renewable play a key role in ensuring reliability. The result: a better quality of life, whether you measure it in terms of health, happiness, environment or economic impact.

Developing and implementing Siemens smart grids

At Siemens we are working closely with the Ministry of Energy and Mineral Resources (the policy-maker) and the state-owned utility company (the front-end executor) to bring smart grid technology to reality. We introduced the technology to them, and now we’re helping them execute the initiative.

We already have a small pilot project up and running on Sulawesi Island. Hopefully, this project gives stakeholders a better understanding of the potential of the technology, and the confidence to implement it first in remote areas, then eventually in big cities.

For our part, we conduct preliminary studies to determine whether a microgrid or a full renewable facility is the appropriate course of action in any given situation, and offer calculations to determine the size, cost, feasibility of grid connection, and how long it will take the project to pay off the initial investment. Once we develop a clear picture of the plans and KPIs, we then move to execution, followed by operation using SICAM Microgrid Controller.

Once it’s up and running, we use cloud applications to monitor and optimize the smart grid/microgrid. We call this app EnergyIP DEOP (Distributed Energy Optimizations), and it features a dashboard that allows for simple monitoring of assets, tracking of KPIs, and storage of data in the Siemens cloud server.

To sum it all up, we’re able to support every stage of the project cycle, from planning, through implementation, to the continuous improvement of the plant.

Preparing for Industry 4.0

At Siemens we see smart grids and microgrids as an indisputable part of the future of Indonesian energy – a future described as ‘Industry 4.0’.

When we talk about Industry 4.0, we refer to the improvement/adaptation of new technology in the industrial operations area, such as cloud computing. As one of the biggest technology companies in the world, Siemens is in a perfect position to help Indonesia capitalize on Industry 4.0, guiding entire sectors on technologies, best practices, and how to move forward.

In 2021, BCG released a list of the world’s most innovative companies. Siemens was number 11, above Facebook and Alibaba, and only below the likes of Apple, Alphabet, Amazon and Microsoft. What we are trying to do in the Industry 4.0 space is world-leading, and I’m lucky enough to have an opportunity to transform not just industries, but entire countries, with the work my team and I do.