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Indonesia Geothermal Energy Market - Growth, Trends, and Forecasts (2020 - 2025)

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  • 90 Pages
  • June 2020
  • Region: Indonesia
  • Mordor Intelligence
  • ID: 5120387
The Indonesia geothermal energy market is expected to grow at a CAGR of around 5.5% during the forecast period. The primary driver for the market includes the government efforts to reduce the dependency on fossil fuels, and thereby reduce CO2 emission of the country. However, the higher price associated with geothermal energy as compared to fossil fuel-based power generation along with increasing competition for alternative renewable energy sources such as solar and wind is expected to hinder the market growth during the forecast period.
  • Increasing demand for electricity is likely to drive the market during the forecast period.
  • During 2018 it has been estimated that Indonesia has the potential of generating around 29 GWe. With an estimated growing population to 296 million and an increased urbanization rate of 71% by 2030, it is expected to have growth in electricity demand. Indonesian government effort to reduce CO2 emission by 29% by 2030, it is most likely to have growth in renewable energy to meet the increasing electricity demand, which is likely to create an opportunity for the geothermal market to grow in the near future.
  • Upcoming coal fired power plants are likely to restrict the market growth during the forecast period.

Key Market Trends

Increasing Demand for Electricity is Likely to Drive the Market
  • Electricity demand in Indonesia is growing over the years with the increasing population and the growth in urbanization. During 2018, the consumption of electricity in Indonesia grew from 1012 kilowatt per hour (KWh) per capita in 2017 to 1064 KWh in 2018.
  • During 2018, the total electricity consumption in Indonesia was nearly 266 GWh. Households consumed the highest percentage of electricity, with almost 40% of the total electricity consumed.
  • It is estimated that the household electricity demand in Indonesia is likely to increase to 350 TWh, while demand in the industrial and commercial sector is likely to increase to nearly 80 TWh and 70 TWh, respectively.
  • Uses of electronic appliances in the household sector are expected to be the significant driver for the increase in electricity consumption, while industries like metal, chemical, food, and textile industries are expected to the major driver for industrial electricity consumption.
  • With an increase in population, the Indonesia household is likely to increase to nearly 80 million by 2050, which is expected to have further increase in electricity consumption during the upcoming years. With government initiatives to increase the share of renewable energy in the country’s total electricity generation, geothermal energy as a possible electricity source is likely to grow during the forecast period.

Upcoming Coal Fired Power Plant is Likely to Restrict the Market Growth
  • During 2018, Indonesia's power plant capacity increased to nearly 64.5 GW, an increase of around 3% compared to the capacity in 2017. The power plant installed capacity in 2018 was mostly dominated by fossil fuel power plants, especially coal (50%), followed by gas (29%), fuel (7%) and renewable energy (14%).
  • In 2018, power plant production reached 283.8 TWh, which got generated from 56.4% coal, 20.2% gas, 6.3% petroleum fuel, and 17.1% renewables (including geothermal of 5%).
  • With existing coal power plants on the operation, the country is planning to build new coal power plants. During January 2020, the country has nearly 32.3 GW capacity coal power plants, and around 19.3 GW of coal power plants are on various stages of implementation.
  • Increasing the capacity of coal-fired power plants is expected to have a significant share in the electricity generation mix. It thus is expected to meet the maximum percentage of rising electricity demand during the forecast period, which is likely to slow down the growth of geothermal energy along with other renewable sources in the country.

Competitive Landscape

The Indonesia geothermal energy market is moderately consolidated. Some of the key players in the market include Enal SpA, Toshiba Energy Systems & Solutions Corporation, BCPG Public Company Limited, PT Supreme Energy, and Sarulla Operations Ltd.

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Geothermal Energy Installed Capacity and Forecast in MW, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
5.2 Strategies Adopted by Leading Players
5.3 Company Profiles
5.3.1 Enal SpA
5.3.2 Toshiba Energy Systems & Solutions Corporation
5.3.3 BCPG Public Company Limited
5.3.4 PT Supreme Energy
5.3.5 Sarulla Operations Ltd.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Enal SpA
  • Toshiba Energy Systems & Solutions Corporation
  • BCPG Public Company Limited
  • PT Supreme Energy
  • Sarulla Operations Ltd.