View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Comment
May 25, 2021

Thermal power to dominate Indonesia’s energy mix in next decade

Indonesia has potential for renewable power generation, but thermal power will remain dominant over the next decade.

By GlobalData Energy

Major global economies are moving away from coal to curb their carbon emission. This has landed Indonesia in a tight spot as thermal power capacity is expected to maintain its dominance in the country during 2021-2030.

Free Report
img

Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

In 2020, thermal power capacity in Indonesia was 59.38GW making its share 85.6% in total power capacity. Indonesia produced 83.2% of its power generation from thermal sources. Thermal power capacity is expected to reach 92.53GW by 2030 maintaining its dominance in the country. During 2021-2030, thermal power generation will be dominated by coal-based electricity generation.

In last two years, Indonesia Government have signalled that they plan to transition away from coal power. The energy ministry even announced that they are considering shutting down ageing coal power plants to replace with renewable power plants. However, with no nuclear power capacity and minimal hydropower capacity, a rapid transitioning from dominant thermal power to renewable power threaten the energy security of the country.

The growth of renewable power in Indonesia is still in its early phase. In 2000, renewable power capacity in Indonesia stood at 1.3GW which increased to 4.3GW in 2020. Renewable power capacity is expected to grow at a CAGR of 12.5% to reach 14.9GW by 2030. By 2030, the country is expected to produce 62.2TWh of its electricity from renewable sources which will only be around 13% of total power generation in the country.

Indonesia has a significant potential for renewable power development. But, compared to other APAC countries Indonesia lags in renewable energy development. One of the prominent factors causing this slow growth is the absence of decisive renewable energy policy and over-regulation with respect to foreign investment.

Moreover, coal is one of the major drivers for Indonesian economy. Indonesia is one of the major producers of coal in the world. So, coal-based power generation offers energy independence for the country. Moving away from coal not only threaten energy security of the country, but it also impacts the economic stability.

Related Companies

Free Report
img

Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology