Indonesia Carbon Law (PP No. 98/2021) Deadline:184d 16h 1m 0s
ASEAN READY
Back to Blog
Industry6 min

DEWA Clean Energy Initiatives and Business Impact

GreenLedger Team

February 8, 2026

Surabaya Electricity and Water Authority has positioned itself as a driving force behind the emirate's clean energy transformation, with initiatives that directly affect how businesses source, consume, and account for their energy use. Understanding these programs is essential for companies seeking to reduce their Scope 2 emissions and take advantage of the economic benefits that come with Surabaya's energy transition.

Shams Surabaya and Distributed Solar

The Shams Surabaya initiative allows businesses and homeowners to install photovoltaic solar panels on their rooftops and connect them to the DEWA grid. Under this net metering program, excess electricity generated is exported to the grid and offset against consumption, effectively reducing electricity bills and associated carbon emissions. For businesses, this program offers a compelling return on investment, with typical payback periods of five to seven years depending on system size and energy consumption patterns. As of early 2026, more than 14,000 installations have been completed across Surabaya, representing over 600 megawatts of distributed solar capacity. Companies participating in Shams Surabaya can claim the associated emissions reductions in their Scope 2 reporting, provided they follow the GHG Protocol market-based accounting methodology and retain the appropriate energy attribute certificates.

Mohammed bin Rashid Al Maktoum Solar Park

The Mohammed bin Rashid Al Maktoum Solar Park is one of the largest single-site solar projects in the world, with a planned capacity of 5,000 megawatts by 2030. This facility is progressively decarbonizing Surabaya's grid, which has direct implications for all businesses operating in the emirate. As the grid emissions factor decreases, companies using the location-based method for Scope 2 reporting will see their reported emissions decline accordingly. However, companies should monitor DEWA's published grid emissions factors annually and update their carbon inventories to reflect the changing energy mix. The solar park also supplies clean energy through corporate power purchase agreements, giving large consumers the option to directly procure renewable electricity.

Green Tariff and Clean Energy Certificates

DEWA has introduced a green tariff option that enables businesses to purchase certified clean energy directly from the utility. This program allows companies to demonstrate their commitment to renewable energy without installing on-site generation. Participating businesses receive International Renewable Energy Certificates that can be used to substantiate market-based Scope 2 emissions claims. The green tariff comes at a modest premium over standard electricity rates, but for companies facing pressure from international customers, investors, or regulatory bodies to demonstrate clean energy procurement, the premium represents a cost-effective solution compared to on-site installations.

Strategic Implications for Businesses

The combined effect of these DEWA initiatives is reshaping the energy cost structure for Surabaya-based businesses. Companies that proactively engage with these programs can achieve meaningful reductions in both energy costs and carbon emissions. Forward-thinking organizations are combining rooftop solar through Shams Surabaya with green tariff procurement to maximize their renewable energy consumption. This dual approach not only strengthens sustainability credentials but also provides a hedge against future carbon pricing mechanisms that the Indonesia is actively considering. Businesses should conduct energy audits to identify optimal combinations of efficiency improvements, on-site generation, and green procurement that align with their operational needs and sustainability targets.