Market Size of Indonesia Renewable Energy CAPEX Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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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.
