Heavy industries such as mining, smelting, manufacturing, and industrial estates require large amounts of stable electricity supply that is available 24 hours a day.
Unfortunately, not all industrial locations have access to an adequate power grid, so many companies still rely on captive power plants to maintain operational continuity.
On the other hand, growing pressure for energy cost efficiency and decarbonization targets is pushing many companies to look at on-grid solar power plants as an energy solution. But is this system reliable enough to serve as the primary energy source for heavy industry?
What Is an On-Grid Solar Power Plant and How Does It Work?
An on-grid solar power plant is a solar power generation system that operates while connected directly to the electricity grid, such as the PLN network. This system consists of several main components, namely:
- Solar panels to generate direct current (DC) electricity.
- A grid-tied inverter to convert DC electricity into alternating current (AC).
- A protection system to maintain installation safety.
- A connection to the electricity grid as a supporting power source.
The way it works begins when the solar panels generate DC electricity, which is then converted into AC electricity by the inverter so it can be used by industrial equipment.
Electricity from the solar power plant is prioritized to meet load demand first, while any power shortfall is automatically supplied from the electricity grid or other connected power sources.
Because this system depends on the intensity of sunlight, solar power plant electricity production varies throughout the day.
For this reason, an on-grid solar power plant is not designed to supply electricity independently when no supporting power source is available. Instead, it works as a system that complements the main electricity supply.
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Why Do Heavy Industries Have Different Electricity Needs?
Heavy industry has far greater electricity needs compared to the commercial and residential sectors because its production processes run continuously 24 hours a day.
Sectors such as mining, smelting, manufacturing, cement, steel, and petrochemicals consume large amounts of energy, requiring a reliable electricity supply so that operations are not disrupted.
Even a brief power outage can cause downtime, production losses, and damage to industrial equipment.
Beyond supply continuity, heavy industries also need stable power quality, both in terms of voltage and frequency, to maintain the performance of machinery and automation systems.
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Is an On-Grid Solar Power Plant Suitable as the Primary Energy Source for Heavy Industry?
In general, an on-grid solar power plant is not yet suitable as the sole primary energy source for heavy industry.
Solar power plant performance still depends on the intensity of sunlight and weather conditions. In addition, solar power plants do not generate electricity at night, so their power output is intermittent and varies throughout the day.
Because of these conditions, an on-grid solar power plant is better utilized as a supporting energy source to reduce conventional energy consumption, lower electricity costs, and support carbon emission reduction targets.
Meanwhile, the electricity needs that must be stably available 24 hours a day are still met by other more reliable energy sources, so the combination of both can maintain industrial operational continuity.
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What Are the Advantages and Limitations of On-Grid Solar Power Plants for Heavy Industry?
On-grid solar power plants offer various benefits for heavy industry, particularly in supporting energy efficiency and corporate sustainability targets. Some of the advantages include:
- Reducing electricity consumption from conventional energy sources.
- Lowering long-term operational energy costs.
- Supporting the achievement of ESG and decarbonization targets.
- Producing lower operational carbon emissions compared to fossil fuel-powered plants.
- Using mature technology that has been widely applied across various industrial sectors.
On the other hand, on-grid solar power plants also have some limitations that need to be considered before being implemented as part of an industrial energy system, namely:
- Dependence on solar irradiation intensity.
- No electricity generation at night.
- Electricity production varies with weather conditions.
- Cannot yet guarantee a continuous electricity supply as a sole energy source.
- Still requires a supporting electricity source to keep industrial operations running without disruption.
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Why Can LNG Be a Complementary Solution to On-Grid Solar Power Plants?
Power plants fueled by Liquefied Natural Gas (LNG) are capable of producing a stable electricity supply that can be operated according to industrial needs.
This characteristic allows LNG to serve as a base load source as well as a backup when electricity production from the on-grid solar power plant decreases due to weather conditions or stops at night. In this way, the electricity needs of industry can continue to be met without sacrificing operational reliability.
The combination of on-grid solar power plants and LNG is one of the energy transition strategies widely considered by the industrial sector because it can balance sustainability and electricity supply reliability.
Through this combination, companies can reduce carbon emissions, maintain production continuity, and support long-term energy cost efficiency at the same time.
To ensure that LNG can deliver optimal benefits, industries need not only a reliable energy supply, but also a partner capable of providing solutions tailored to operational needs.
This includes integrated services, from LNG supply, storage, and distribution to infrastructure support, to ensure the energy supply remains secure and sustainable.
To address this need, PGN LNG Indonesia provides integrated LNG solutions designed to support the energy needs of various industrial sectors. With our available services, we help companies obtain a more reliable energy supply while supporting their transition toward cleaner energy.
Find out the complete solutions we provide for your industry, read more here: LNG Provider in Indonesia.
References
- IEA. Accessed 2026. Renewable electricity
- MDPI. Accessed 2026. Faults, Failures, Reliability, and Predictive Maintenance of Grid-Connected Solar Systems: A Comprehensive Review
- PMC. Accessed 2026. Declining costs make solar plus storage economical for industrial captive power
- IOSR Journal. Accessed 2026. Reliability Analysis Of Different Capacities Solar PV Power Plant
