Indonesia Power Generation Market to Reboot with New Power Program in View

Joko Widodo, the Indonesian president popularly known as “Jokowi”, recently announced the initiation of a nation-wide energy program. The project, which kicks off from Gorontalo in August, is set to revamp the entire Indonesia power generation market. 

Here’s a quick recap of the Indonesia power generation market:
  • It weighed in at 44.4 gigawatts in 2013
  • The 2013 power generation of 206.5 terawatt hour is expected to grow at a rate of 9.1% from 2014 to 2022, reaching an effective 442.5 terawatt hour in 2022
  • The expected CAGR of the market is 8.5% between 2014 and 2022

Leading market research agency Transparency Market Research states that the Indonesia power generation market was worth US$14.1 billion in 2013, a value that is expected to escalate to US$63.6 billion in 2022.

Browse Market Research Report of Power Generation Market:

Gas Attempts to Enter a Coal-dominated Market

The Indonesia power generation market, to date, has been consuming largely coal in order to meet the electricity requirements. While the coal-powered segment is expected to remain in the lead for the time being, the inception of natural gas power plants is picking up pace as well.

Jokowi had announced the inauguration of a gas-fueled power plant’s construction in Pohuwato district of Gorontalo. The new plant is set to generate 100 megawatts of electricity annually. The plant is a part of the plan created by the Indonesian government to develop a network of power plants that will supply 35,000 megawatts of electricity. The project has been distributed over several regions.

Growing Demand for Electricity

Indonesia is showing a 9% increase in demand for electricity per year. This is more than the annual growth of electricity generation shown by the nation in the recent past. The government is trying to match the demand with supply. What this spells out for other industries is a heavier chance of investments. The Indonesia power generation market lacks investments and the government is looking for avenues to fill that gap, even with foreign investors.

Browse Market Research Press Release of Power Generation Market:

Increasing Generation and Reducing Emissions

The Indonesian government has also planned to phase out the emission of greenhouse gases by implementing cleaner power generation methods. One such avenue being explored is geothermal energy. The country has a plethora of geothermal sources for power generation, which are estimated to amount up to 28.0 gigawatts. As of 2013, merely 1.6 gigawatts were actually being harnessed. Another 5.0 gigawatts are scheduled to be added to this generation figure by 2025.

Meanwhile, the Indonesian government has also decided to accelerate the development of multiple power generation projects in Gorontalo, which includes a 2 x 25 megawatts steam-fueled power plant in Anggrek. The plant will, however, miss its early deadline of December 2015. The region has also experienced a long duration of power crisis due to the current developments. But with the upgraded geothermal power generation and possible aid from bigger investors, the nation is on the verge of a brighter tomorrow.


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