Market Size of Indonesia Geothermal Energy Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Geothermal Energy Market Analysis
During the forecast's time frame, Indonesia's geothermal energy market is expected to register a compound annual growth rate (CAGR) of about 5.5%.
COVID-19 had a detrimental effect on the market. Presently, the market has reached pre-pandemic levels.
- Over the long term, the primary driver for the market will be the government's efforts to reduce the country's dependency on fossil fuels and thereby reduce CO2 emissions. Increasing electricity demand is likely to drive the market during the forecast period.
- On the other hand, geothermal energy is more expensive than power from fossil fuels, and there is more competition from other renewable energy sources, like solar and wind, which is expected to slow market growth during the forecast period.
Nevertheless, with an estimated population of 296 million and an increased urbanization rate of 71% by 2030, electricity demand is expected to grow. The Indonesian government wants to cut CO2 emissions by 29% by 2030. This is most likely to be done by increasing the use of renewable energy to meet the growing electricity demand. This is likely to give the geothermal market a chance to grow in the near future.
Indonesia Geothermal Energy Industry Segmentation
Renewable energy derived from the Earth's core is known as geothermal energy. It originates from heat produced during the planet's initial creation and the radioactive decay of elements. In the Earth's core, rocks and liquids contain this thermal energy. Geothermal energy is a safe, sustainable resource that may be used to generate both heat and electricity.
The market sizing and forecasts have been done based on installed capacity (megawatts).
Indonesia Geothermal Energy Market Size Summary
The Indonesian geothermal energy market is poised for growth, driven primarily by government initiatives aimed at reducing reliance on fossil fuels and decreasing carbon emissions. As the country experiences a surge in electricity demand due to population growth and urbanization, geothermal energy presents a viable solution to meet these needs. However, the market faces challenges, including the higher cost of geothermal energy compared to fossil fuels and competition from other renewable sources like solar and wind. Despite these hurdles, the government's commitment to increasing renewable energy usage is expected to provide opportunities for the geothermal sector to expand in the coming years.
The market landscape is moderately consolidated, with key players such as Enel SpA, Toshiba Energy Systems & Solutions Corporation, and PT Supreme Energy actively participating in the industry. Recent developments include significant investments in geothermal infrastructure, such as Mitsubishi Power's project at the Lumut Balai Unit 2 and the commercial operations of the Rantau Dedap Geothermal Power Generation project. These initiatives highlight the ongoing efforts to enhance geothermal capacity, even as the country continues to rely heavily on coal-based power plants to meet its growing electricity demand. The strategic focus on renewable energy, coupled with increasing household and industrial electricity consumption, underscores the potential for geothermal energy to play a more prominent role in Indonesia's energy mix.
Indonesia Geothermal Energy Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Installed Capacity and Forecast in MW, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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Indonesia Geothermal Energy Market Size FAQs
What is the current Indonesia Geothermal Energy Market size?
The Indonesia Geothermal Energy Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Indonesia Geothermal Energy Market?
Enel SpA, Toshiba Energy Systems & Solutions Corporation, BCPG Public Company Limited, PT Supreme Energy and Sarulla Operations Ltd. are the major companies operating in the Indonesia Geothermal Energy Market.
