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Indonesia Renewable Energy CAPEX Market Size (2024 - 2029)

The Indonesia renewable energy CAPEX market is poised for significant growth, driven by increased investments in response to energy security concerns and rising fossil fuel prices. Despite challenges such as higher initial costs and cheaper alternatives in crude oil and coal, the government's commitment to renewable energy, particularly solar, is expected to propel the market. The solar segment, with its substantial potential, is anticipated to lead the market. Government policies and incentives are attracting foreign direct investment, further boosting the market's expansion prospects.

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Market Size of Indonesia Renewable Energy CAPEX Industry

Indonesia Renewable Energy CAPEX Market
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 21.00 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Indonesia Renewable Energy Capex Market Analysis

The Indonesia renewable energy CAPEX market is expected to grow at a CAGR of more than 21% in the forecast period of 2022-2027. The COVID-19 outbreak had a significant impact on the renewable energy market in Indonesia. In 2020, the market witnessed significantly lower investments in renewable energy projects by governments as well as private companies due to the economic slowdown. However, the rise in concern about energy security and the increased price of crude oil and coal has forced governments and private companies to invest more in renewable energy projects. Thus the government is introducing policies and focusing on increasing the adoption of renewable energy, which is expected to drive the renewable energy market in the forecast period. Higher initial investment and the power generation by crude oil and coal are still cheaper than power generation by renewable energy sources such as solar and wind which is anticipated to hinder the renewable energy CAPEX market in near future.

  • The solar segment is expected to dominate the market during the forecast period. Solar energy has a higher potential than any other renewable energy project in the country. Solar energy projects have more than 200 GW potential. Thus the investment in the solar-based energy project is expected to grow in the forecast period.
  • To achieve carbon neutrality by 2060, The Indonesian government is aiming to shift its focus on renewable energy sources. Thus to achieve carbon neutrality the government would need more than USD 1,000 billion. The new investment is anticipated to produce 707.7 GW capacity of power from the renewable energy project. This provides a great investment opportunity in Indonieas, particularly in renewable energy projects.
  • Furthermore, the government is also introducing renewable energy favorable policies that are also attracting FDI into the renewable which is also anticipated to boost the renewable energy CA{PEX market in the forecast period.

Indonesia Renewable Energy Capex Industry Segmentation

The Scope of Indonesia renewable energy CAPEX market includes:-

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Indonesia Renewable Energy CAPEX Market Size Summary

The Indonesia renewable energy CAPEX market is poised for significant growth, driven by increasing investments in renewable energy projects. The market experienced a downturn during the COVID-19 pandemic due to reduced investments from both government and private sectors. However, rising concerns over energy security and the escalating costs of crude oil and coal have prompted a shift towards renewable energy. The Indonesian government is actively promoting policies to enhance the adoption of renewable energy, which is expected to propel market growth. Despite the higher initial costs and the current economic viability of fossil fuels, the government's commitment to renewable energy is anticipated to overcome these challenges, fostering a robust market environment.

Solar energy is expected to be the dominant segment within the renewable energy market in Indonesia, given its substantial potential compared to other renewable sources. The country's solar energy projects are projected to attract significant investments, supported by government initiatives aimed at achieving carbon neutrality by 2060. The Indonesian government has outlined ambitious targets and favorable policies to encourage foreign direct investment in renewable energy, further bolstering the market. With a diverse range of renewable resources available, including geothermal, hydropower, and biomass, Indonesia is well-positioned to expand its renewable energy capacity, making it a promising landscape for future investments in the sector.

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Indonesia Renewable Energy CAPEX Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. Market Segmentation By Type

    1. 2.1 Solar

    2. 2.2 Wind

    3. 2.3 Hydro

    4. 2.4 Bioenergy

    5. 2.5 Other Sources

Indonesia Renewable Energy CAPEX Market Size FAQs

The Indonesia Renewable Energy CAPEX Market is projected to register a CAGR of greater than 21% during the forecast period (2024-2029)

Sindicatum Sustainable Resources, BCPG Public Company Limited, UPC Renewables, ANDRITZ and Sumitomo Corporation are the major companies operating in the Indonesia Renewable Energy CAPEX Market.

Renewable Energy Capex Market in Indonesia Report Snapshots

Indonesia Renewable Energy Capex Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)