Indonesia’s renewable energy capability to achieve 38.1GW in 2035

GlobalData’s newest report, Indonesia Energy Market Traits and Evaluation by Capability, Era, Transmission, Distribution, Rules, Key Gamers and Forecast to 2035, gives in-depth insights into the nation’s evolving energy panorama. The research analyses put in capability (in gigawatts, GW), technology (in terawatt hours, TWh), expertise combine and regulatory frameworks throughout the historic interval 2020 to 2024 and the forecast interval 2025 to 2035. It additionally evaluates market tendencies, funding alternatives and key firm methods. The evaluation attracts upon GlobalData’s proprietary databases, main and secondary analysis, and professional modelling.

Indonesia is advancing its clear vitality transition whereas sustaining a robust reliance on thermal technology, supported by main investments in photo voltaic photovoltaic (PV), onshore wind and geothermal vitality. The nation’s cumulative renewable energy capability is forecast to achieve 38.1GW by 2035, up from 8.4GW in 2024, registering a compound annual development price (CAGR) of 14.7% between 2024 and 2035.

Photo voltaic PV capability is anticipated to surge from 0.9GW in 2024 to 23.2GW in 2035, pushed by the growth of floating and utility-scale tasks and rooftop photo voltaic programmes underneath up to date feed-in and net-metering mechanisms. Onshore wind capability will rise from 0.15GW to 2.6GW, supported by aggressive tenders and hybrid renewable developments in Sulawesi and East Nusa Tenggara. Geothermal capability will increase steadily from 2.6GW to five.5GW, leveraging Indonesia’s huge geothermal reserves and financial assist by means of the PT SMI Geothermal Fund. Supportive frameworks such because the Simply Power Transition Partnership (JETP), concentrating on 44% renewable electrical energy by 2030, and the RUPTL 2025–2034 plan are accelerating the clear vitality shift. Presidential Regulation 112/2022 has additional strengthened funding readability by limiting new coal improvement and mandating early retirement pathways for current vegetation. Moreover, cross-island transmission growth and the deployment of digital grid programs are enhancing integration and reliability.

Regardless of sturdy renewable development, Indonesia’s energy combine will stay dominated by thermal sources in 2035. This displays the nation’s huge home coal reserves, low technology prices and the important function of pure gasoline in balancing intermittent renewables and supporting baseload reliability. Coal-fired capability is projected to rise from 55.6GW in 2024 to 61.4GW in 2035, whereas gas-fired capability will increase from 29.1GW to 36GW. For a geographically dispersed archipelago, sustaining thermal stability ensures constant provide throughout remoted island grids whereas renewable infrastructure continues to scale up.

Indonesia’s energy system is coming into a dual-track part of growth, scaling renewables whereas retaining thermal stability. With photo voltaic PV and wind onshore main development, supported by geothermal improvement and grid modernisation, the nation is progressively constructing a extra diversified and safe vitality combine by means of to 2035 and past.

“Indonesia’s renewable energy capability to achieve 38.1GW in 2035” was initially created and printed by Energy Expertise, a GlobalData owned model.

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