The energy transition in Indonesia is moving toward a more sustainable path. One innovation attracting attention is the use of second-life electric vehicle (EV) batteries for energy storage systems. This technology offers a smart solution for energy companies and project developers across the country.

EV batteries are typically considered to be no longer optimal when their capacity drops to 70–80%. However, in stationary applications, these batteries still possess a valuable remaining service life. Repurposing these batteries is a strategic step in supporting a circular economy in the energy sector [1].

A technician inspecting lithium-ion battery modules to be repurposed for a large-scale energy storage system. — Image created by AI

Why used batteries are valuable assets

Many energy companies are now looking at used batteries as a cost-effective solution. The use of second-life batteries can reduce capital expenditure (CAPEX) by 30% to 50% compared to purchasing new units [1]. This cost efficiency is crucial for the development of renewable energy projects in remote areas.

Beyond the financial aspect, reusing batteries helps reduce hazardous waste. This strategy aligns with the principles of a circular economy for electric vehicle batteries: recycling and reuse strategies. By extending their service life, we delay energy-intensive chemical recycling processes.

The role in supporting grid stability

Indonesia faces unique challenges with its thousands of islands and microgrid systems. Used batteries can be integrated with solar power plants (PLTS) to provide stable electricity throughout the day [3]. This system helps address the intermittency of solar energy, which is dependent on weather conditions.

At the large grid level, energy storage systems or grid-scale storage become critical. Used batteries are capable of performing “peak shaving” to balance peak electrical loads. Additionally, these batteries help with frequency regulation to keep the grid stable [2].

Integration with charging infrastructure

The growth of electric vehicles in Indonesia requires adequate infrastructure support. Public Electric Vehicle Charging Stations (SPKLU) often strain local grids when used simultaneously. The use of second-life batteries as power buffers at SPKLU locations is an effective solution [1].

With local energy storage, SPKLU units do not need to draw large amounts of power directly from the main grid continuously. This reduces pressure on local distribution transformers. This innovation supports the acceleration of the adoption of electric vehicles and government incentive policies in Indonesia.

Technical and regulatory challenges in Indonesia

Despite the great potential, the implementation of used batteries requires strict standardization. State of Health (SoH) testing must be conducted to ensure operational safety [1]. Without accurate classification, the performance of the energy storage system will not be maximized.

The Battery Management System (BMS) must also be adaptive. The BMS needs to manage various types of battery chemistries, such as LFP or NMC, within a single system. Research from the Institute for Essential Services Reform highlights the importance of strengthening the policy ecosystem to support this transition [3].

Logistics and the used battery supply chain

Inter-island logistics pose a distinct challenge for project developers in Indonesia. Lithium-ion batteries are categorized as dangerous goods [1]. Safe and certified transport procedures are required to move batteries from city centers to remote areas.

The government needs to establish regulations governing legal liability regarding used batteries. Safety certification is key to ensuring investors feel secure in developing BESS projects. Without a clear legal framework, the adoption of this technology will proceed more slowly [1].

The future of renewable energy in Indonesia

The utilization of used batteries is an integral part of the clean energy transition roadmap. By maximizing existing assets, Indonesia can achieve its carbon neutrality targets more efficiently [2]. This innovation is not just a trend, but an urgent necessity.

For energy companies, this is an opportunity to create new business models. Project developers capable of integrating used batteries will have a competitive advantage. This also supports national efforts in the optimization of the electric vehicle life cycle from design to waste management.

Conclusion

Used electric vehicle batteries offer significant potential for energy storage systems in Indonesia. Although technical and regulatory challenges remain, the economic and environmental benefits offered are substantial. Energy companies that begin adopting this technology will lead the transition toward a more sustainable energy future.

More Information

  1. Second-life EV battery: An electric vehicle battery that has experienced capacity degradation but still has a remaining service life suitable for stationary energy storage applications, making it an efficient circular economy solution [1].
  2. BESS (Battery Energy Storage System): A battery-based energy storage system that functions to store electrical power from renewable sources for use during peak loads or to maintain grid stability [2].
  3. Renewable energy intermittency: The characteristic of renewable energy, such as solar and wind, where production is not constant, requiring energy storage systems to maintain supply reliability [3].
  4. Peak shaving: An electrical load management strategy of storing energy during times of low demand and releasing it during times of high demand to reduce pressure on the main grid [2].
  5. State of Health (SoH): A battery health indicator that measures the current capacity and performance of a battery compared to its condition when new, which is crucial for determining the viability of used batteries [1].