Several efforts have looked at accelerating smart grid development in Indonesia to provide energy security, increase renewable penetration, and reduce energy costs. These include a project by METI in Japan and by the US Department of Energy National Renewable Energy Laboratory.

Independent power supply by diesel power generation is common in islands and remote areas. While power supply in these areas is subject to unstable and rising fuel costs, permanent transportation costs, emergency response at the time of failure, etc. However, by using alternative transmission lines and submarine cables, large-scale systems Power supply from investment is often not collected due to insufficient collection of electricity charges for investment.

This proposal aims to stabilize output fluctuation of renewable energy to improve power reliability and at the same time to reduce the amount of diesel power generation in islands and remote areas.

By increasing the installation capacity of sunlight, it becomes possible to shift the peak of the load, which makes it possible to reduce the number of existing diesel generators and capacity.