Indonesia Renewable Energy Market Size (2024 - 2029)

The market size of renewable energy in Indonesia is anticipated to experience significant growth over the forecast period, driven by the government's increasing focus on renewable power generation and supportive policies. Despite challenges such as the country's reliance on fossil fuels and competing investments in the oil and gas sector, opportunities are expected to arise from the integration of smart grids and battery energy storage systems. These developments aim to enhance power quality and support variable wind and solar projects, contributing to the expansion of the renewable energy sector in Indonesia.

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Market Size of Indonesia Renewable Energy Industry

Indonesia Renewable Energy Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 21.44 %
Market Concentration High

Major Players

Indonesia Renewable Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Renewable Energy Market Analysis

The Indonesia Renewable Energy Market size in terms of installed base is expected to grow from 16.04 gigawatt in 2024 to 42.37 gigawatt by 2029, at a CAGR of 21.44% during the forecast period (2024-2029).

  • Over the medium term, the increasing interest of the Indonesian government toward renewable energy power generation and favorable government policies are expected to drive the market.
  • On the other hand, factors, such as the country's dependence on fossil fuels for energy supply and an increasing number of projects and investments in the oil and gas sector, are expected to restrain the country's renewable energy market.
  • Nevertheless, the integration of smart grids and battery energy storage systems (BESS) to improve the quality of power and facilitate the variable wind power and solar PV projects is expected to create several opportunities for the renewable energy market in Indonesia.

Indonesia Renewable Energy Industry Segmentation

Renewable energy is the energy obtained from natural sources that is recharged at a higher rate than it is consumed, creating far lower carbon emissions than burning fossil fuels. India has immense growth potential in renewable energy, which ambitious targets and increasing investments can unlock.

Indonesia's renewable energy market is segmented by source. By source, the market is segmented into wind, solar, hydro, bioenergy, and other sources. For each segment, the market sizing and forecasts have been done based on installed capacity.

Source
Solar
Wind
Hydro
Bioenergy
Other Sources
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Indonesia Renewable Energy Market Size Summary

The renewable energy sector in Indonesia is poised for significant growth, driven by government initiatives and favorable policies aimed at increasing the share of renewable sources in the energy mix. The Indonesian government has set ambitious targets to boost renewable energy's contribution to electricity generation, focusing on solar, wind, hydro, geothermal, and biomass resources. Despite the country's historical reliance on fossil fuels, recent developments indicate a shift towards more sustainable energy solutions. The integration of smart grids and battery energy storage systems is expected to enhance the quality of power supply and support the expansion of variable renewable energy projects, particularly in solar and wind energy.

Indonesia's renewable energy market is characterized by its vast potential, especially in solar and geothermal energy. The country has made strides in solar power capacity, with significant growth in on-grid solar photovoltaic installations. Government initiatives, such as the net metering legislation for rooftop PV systems, are expected to further stimulate demand for solar energy. The market is also witnessing investments in large-scale solar and biomass projects, reflecting a broader commitment to reducing greenhouse gas emissions and transitioning to a more sustainable energy landscape. Key players in the market include Canadian Solar Inc., Trina Solar Co. Ltd, and others, who are actively contributing to the development of renewable energy infrastructure in the country.

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Indonesia Renewable Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Renewable Energy Mix, 2022

    3. 1.3 Renewable Energy Installed Capacity and Forecast in GW, till 2028

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

        1. 1.6.1.1 Immense Potential in Renewable sector due to Natural Landscape of the country

        2. 1.6.1.2 Supportive Government Policies and Initiatives

      2. 1.6.2 Restraints

      3. 1.6.3 Lack of Investment for Infrastructure Development

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Source

      1. 2.1.1 Solar

      2. 2.1.2 Wind

      3. 2.1.3 Hydro

      4. 2.1.4 Bioenergy

      5. 2.1.5 Other Sources

Indonesia Renewable Energy Market Size FAQs

The Indonesia Renewable Energy Market size is expected to reach 16.04 gigawatt in 2024 and grow at a CAGR of 21.44% to reach 42.37 gigawatt by 2029.

In 2024, the Indonesia Renewable Energy Market size is expected to reach 16.04 gigawatt.

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