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 |
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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.
