Existing Renewable Energy Market
Today, renewable energy accounts for a small but growing portion of Indonesia’s electricity portfolio. Most renewable energy comes from the hydropower and geothermal industries, but growth in other sectors is likely. Presidential Decree No. 5 mandates an increase in renewable energy production from 7 percent to 15 percent of generating capacity by 2025. To accomplish that goal, 6.7 GW of new renewable energy capacity must be installed in the next 15 years based on current growth projections.7 Geothermal and biomass have been slated for the most growth, but opportunities exist in every renewable energy technology.
Geothermal Power Market
Indonesia is home to 40 percent of the world’s known geothermal resource (an estimated 27,510 MW), which is more than any other country. How¬ever, only 1,052 MW (a little more than 3 percent) has been developed to date. The government has mandated that geothermal energy provide at least 9,500 MW (5 percent) of the nation’s electricity by 2025.
As an island nation, Indonesia is well suited for hydropower from conventional hydro and emerging ocean energy technologies. PLN estimates that Indonesia has 75,670 MW of large hydropower potential.
Solar Power Market
Indonesia offers significant solar power resources (4.8 kilowatt-hours per square meter per day [kWh/m2/day]), but the country has yet to develop a strong market. To date, Indonesia has installed 12.1 MW of solar power, which is mostly from roofmounted solar photovoltaic (PV) cells in urban areas.
Drivers of Renewable Energy Development
The government has begun promoting renewable energy to meet the country’s robust economic growth targets. By reducing the country’s dependence on imports and by increasing production of renewable energy, the government believes it can catalyze economic growth. Such a policy would deflect money back into the economy and make future growth more sustainable. Several other factors have also led to the country’s new interest in renewable energy.
Source : http://trade.gov