Indonesia Renewable Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 16.04 gigawatt |
| Market Volume (2029) | 42.37 gigawatt |
| CAGR (2024 - 2029) | 21.44 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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 Market Trends
Solar Energy Is Expected to Witness Significant Growth
- The Indonesian government set a renewable energy target of 23% and 31% of the total electricity generation by 2025 and 2050, respectively. Around 13% of power generation nationwide comes from renewable energy resources, mainly hydroelectric and geothermal power production.
- Indonesia is rich in solar power, with a potential of around 207 GW, according to the Ministry of Energy and Mineral Resources (MEMR). The Indonesian government is prioritizing the development of renewable energy sources, including solar.
- According to the Ministry of Energy and Mineral Resources, in 2022, the total installed on-grid solar photovoltaic (PV) capacity was approximately 190.06 MW, representing an increase of 22.39% compared to 155.29 MW in 2021. The International Renewable Energy Agency (IRENA) states that Indonesia is installing solar power capacity to grow significantly in scale by 2030, mainly driven by initiatives by the government and PLN (a state-owned electricity company).
- The IRENA identified the potential for Indonesia to deploy 47 GW of solar power capacity by 2030 as part of its 2017 Roadmap for a Renewable Energy Future (REmap) program report.
- The Indonesian solar power capacity is growing at the utility scale, on residential and commercial rooftops, and in off-grid settings to replace costly diesel-fueled generation, which is expected to drive solar power generation in the country.
- In September 2021, the Ministry of Energy and Mineral Resources (MEMR) enacted the net metering legislation for rooftop PV, increasing the net metering factor from approximately 0.65 to 100. Thus, solar PV system owners will likely be given surplus credits for the power they inject into the grid, the same tariff rate for buying electricity from the network. Such government initiatives will likely increase the demand for solar energy in Indonesia during the forecast period.
- Therefore, due to such factors, the solar energy segment is expected to grow significantly during the forecast period.
Progressing Renewable Energy Policies Are Expected to Drive the Market
- After decades, the Indonesian New and Renewable Energy (NRE) has gained momentum in recent years. Indonesia lags in developing its new and renewable energy resources compared to other countries. The country's rich oil and gas resources in the past have made NRE development a choice instead of a priority.
- The government of Indonesia started paying attention to the NRE sector when Indonesian oil and gas reserves started depleting. The country became a net oil importer for the first time in 2005.
- Consequently, the Energy Law of 2007 set Indonesia's plan to shift its reliance on fossil fuels, mainly coal, and oil, toward more eco-friendly and sustainable means like solar, wind, hydro, geothermal, and biomass.
- The Ministry of Energy and Mineral Resources data show that the country has enormous potential for geothermal energy at 23.9 GW and more than 94 GW of hydropower. The country also has a biomass potential of more than 32.6 GW and a biogas potential of 200,000 barrels per day.
- Renewable energy projects are estimated at 60.6 GW for wind energy, 208 GW for solar energy, and 17.9 GW for ocean and tidal energy. The potential could be substantially more immense with rapidly advancing renewable energy technology.
- According to the Internation Renewable Energy Agency, in 2022, the total installed renewable energy capacity was approximately 12.48 GW, representing an increase of 8.18% compared to 11.53 GW in 2021.
- Therefore, due to such factors, increasing policies set by the government are expected to drive the country's renewable energy market during the forecast period.
Indonesia Renewable Energy Industry Overview
The Indonesian renewable energy market is consolidated. Some of the key players in the market include (in no particular order) Canadian Solar Inc., Sindicatum Renewable Energy Company Pte Ltd, Trina Solar Co. Ltd, PT Sumber Energi Sukses Makmur, and BCPG Public Company Limited (BCPG)., among others.
Indonesia Renewable Energy Market Leaders
Canadian Solar Inc.
Sindicatum Renewable Energy Company Pte Ltd
Trina Solar Co. Ltd
PT Sumber Energi Sukses Makmur
BCPG Public Company Limited (BCPG)
*Disclaimer: Major Players sorted in no particular order
Indonesia Renewable Energy Market News
- June 2023: SEG Solar (SEG) and PT Kawasan Industri Terpadu Batang (KITB) have announced they have entered into a binding agreement for the lease of approximately 41 hectares of land located in the Batang Regency, Central Java, Indonesia. Through PT SEG ATW Solar Manufaktur Indonesia, a joint-venture project company, SEG intends to invest USD 500 million in developing the land to construct a 5GW solar cell manufacturing facility and a 3GW solar module manufacturing facility. To assist with developing local facilities in Indonesia, SEG has partnered with PT ATW Investasi Selaras (ATW Group).
- December 2022: PT Bukit Asam Tbk(PTBA), a leading coal mining services provider in the country, collaborated with the Ministry for Maritime Affairs and Investment and Forest and Environmental Management of the ministry to develop a pilot biomass project in South Sumatra. The government expected this project to align with the greenhouse emission reduction targets and mangrove rehabilitation projects.
Indonesia Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Renewable Energy Mix, 2022
4.3 Renewable Energy Installed Capacity and Forecast in GW, till 2028
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Immense Potential in Renewable sector due to Natural Landscape of the country
4.6.1.2 Supportive Government Policies and Initiatives
4.6.2 Restraints
4.6.3 Lack of Investment for Infrastructure Development
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Source
5.1.1 Solar
5.1.2 Wind
5.1.3 Hydro
5.1.4 Bioenergy
5.1.5 Other Sources
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaborations, and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Canadian Solar Inc.
6.3.2 Sindicatum Renewable Energy Company Pte Ltd.
6.3.3 Trina Solar Ltd
6.3.4 PT Sumber Energi Sukses Makmur
6.3.5 BCPG Public Company Limited (BCPG)
6.3.6 SEG Solar
6.3.7 PT. ATW Solar Indonesia
6.3.8 Fourth Partner Energy Private Limited
6.3.9 Xurya Daya Indonesia
6.3.10 TotalEnergies ENEOS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. The Integration Of Smart Grids And Battery Energy Storage Systems (BESS) with Renewable Energy Projects
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 |
Indonesia Renewable Energy Market Research FAQs
How big is the Indonesia Renewable Energy Market?
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.
What is the current Indonesia Renewable Energy Market size?
In 2024, the Indonesia Renewable Energy Market size is expected to reach 16.04 gigawatt.
Who are the key players in Indonesia Renewable Energy Market?
Canadian Solar Inc., Sindicatum Renewable Energy Company Pte Ltd, Trina Solar Co. Ltd, PT Sumber Energi Sukses Makmur and BCPG Public Company Limited (BCPG) are the major companies operating in the Indonesia Renewable Energy Market.
What are the major trends driving the growth of the Renewable Energy Market in Indonesia?
The major trends driving the growth of the Renewable Energy Market in Indonesia are a) Growing installation of rooftop solar panels in residential and commercial sectors b) Integration of energy storage solutions for better grid management c) Rising investments in onshore wind projects
Renewable Energy in Indonesia Industry Report
The Indonesia Renewable Energy Market is experiencing significant growth, driven by heightened awareness of climate change and strong governmental initiatives aimed at reducing greenhouse gas emissions. The market, segmented by sources such as solar, wind, hydro, and bioenergy, is witnessing robust growth particularly in solar energy due to favorable policies and increasing installations across residential, commercial, and industrial sectors. Investments in wind projects and the integration of advanced energy storage solutions are enhancing grid management and reliability. The adoption of digital technologies and the Internet of Things (IoT) is further improving energy management and efficiency. Spanning across Java, Sumatra, Kalimantan, Sulawesi, and other regions, the market's expansion is supported by various policy frameworks and incentives, positioning Indonesia as a promising region for renewable energy development and investment. For detailed statistics, market share, size, revenue growth rate, and a forecast outlook, access a free report PDF download from Mordor Intelligence™ Industry Reports.
