The solar energy market in Indonesia is poised for significant growth, with a projected compound annual growth rate (CAGR) of 12.5% from 2024 to 2030. According to a recent report by Global Market Insights Inc., the market size is expected to surpass USD 1.7 billion by the end of the forecast period. This growth trajectory highlights Indonesia’s commitment to diversifying its energy sources and reducing its carbon footprint.
Indonesia Solar Energy Growth and Market Expansion
The growing demand for energy, coupled with the availability of abundant and affordable solar resources in Indonesia, is driving this expansion. Government initiatives supporting solar energy adoption and advancements in solar technology are further propelling the market forward. Notably, the transition to renewable energy sources is a global trend, and Indonesia’s efforts align with international sustainability goals.
The report highlights several key developments in the solar energy market. For instance, in July 2024, PT Sewatama Jasa Mandiri partnered with Daewoo Engineering to expand solar capacity at the Pertamina refinery in Balongan, West Java. This collaboration is expected to increase the solar capacity at the site from 3.5 MWp to 6.5 MWp, contributing to the growing renewable energy infrastructure in the region.
In another significant development, Sungrow announced in July 2024 that its inverter solutions had been selected for the 15 MW Tanjung Batu floating solar project in Gorontalo, Indonesia. This project, which is expected to be operational by the end of 2024, will be the largest floating solar installation in Indonesia and the first phase of a larger planned 100 MWp project.
Government Initiatives Driving Indonesia Solar Energy Growth
The Indonesian government has set ambitious targets for solar energy development, aiming to achieve a solar power generation capacity of 18 GW by 2035. This goal is part of the broader effort to transition towards renewable energy sources and reduce reliance on fossil fuels. The declining costs of solar energy systems, along with increased access to affordable solar technologies, are also contributing to the market’s growth. The report notes that the commercial segment is expected to see substantial growth, with a projected CAGR of 11.5% from 2024 to 2030. This growth is driven by the reduced costs of solar systems and the availability of innovative financing options.
Floating Solar Projects and Indonesia Solar Energy Growth
The report also highlights the potential of floating solar projects in Indonesia. The Tanjung Batu floating solar project, which is set to be the largest in the country, is expected to generate 20 GWh of electricity annually and reduce carbon dioxide emissions by 14,300 tons per year. The project’s construction will create approximately 600 new jobs and contribute to the local economy. Floating solar installations are gaining traction in Indonesia due to the country’s abundant water resources and the availability of suitable sites for such projects. The technological advancements in floating solar systems, combined with the government’s commitment to renewable energy, are expected to drive further growth in this segment.
The solar energy market in Indonesia is on a strong growth trajectory, supported by favorable government policies, declining costs of solar technologies, and the country’s abundant solar resources. The ongoing and planned projects, such as the expansion of the Pertamina refinery solar capacity and the Tanjung Batu floating solar project, underscore the growing momentum in the renewable energy sector.
As Indonesia continues to invest in solar energy, the market is expected to play a pivotal role in the country’s transition to a sustainable energy future. With the projected growth rate of 12.5% CAGR from 2024 to 2030, the solar energy market is set to make significant contributions to Indonesia’s energy mix and its broader economic development. For more insights, read about Indonesia’s solar energy growth projections here.