Indonesia Renewable Energy Market Size (2024 - 2029)

Indonesia Renewable Energy Market Size Summary

The Indonesia Renewable Energy Market is projected to experience significant growth in its installed base over the next few years. This growth is largely driven by the Indonesian government's increasing interest in renewable energy power generation, supported by favorable government policies. However, the country's reliance on fossil fuels for energy supply and the increasing number of projects and investments in the oil and gas sector may pose challenges to the renewable energy market. Despite these potential obstacles, the integration of smart grids and battery energy storage systems (BESS) to improve power quality and facilitate variable wind power and solar PV projects is expected to create numerous opportunities for the renewable energy market in Indonesia. Solar energy is anticipated to witness substantial growth in the Indonesian renewable energy market, with the government setting ambitious renewable energy targets for the coming years. The country's rich solar power potential is being prioritized for development, with the installed on-grid solar photovoltaic (PV) capacity experiencing a notable increase. The Indonesian solar power capacity is expanding on several fronts, including utility scale, residential and commercial rooftops, and off-grid settings, replacing costly diesel-fueled generation. Government initiatives, such as the enactment of net metering legislation for rooftop PV, are expected to further increase the demand for solar energy in Indonesia. The market is dominated by key players such as 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.