The Current Situation of the New Energy Industry and the Future Prospects of the Indonesian Market

 

The new energy industry in a broad sense refers to: engaging in other than water energy
The ministry of renewable energy development, direct utilization, transformation and a series of processes of the industry. The connotation of the industry is very rich, from the perspective of energy forms, mainly including solar energy, wind energy, biomass energy, hydrogen energy, geothermal energy, tidal energy and nuclear fusion; From the form of use, it can be divided into heating and cooling, power generation, energy storage, etc. From the technical point of view, it mainly includes photovoltaic power generation, solar thermal power generation, wind power generation, solar heating, geothermal power generation and so on.

 

 

Photovoltaic, wind power dominate. Due to the potential resource amount and basis of various types of renewable energy utilization

Technical preparation and utilization difficulties are different, the development of various types of new energy industry has a great difference, the current global new energy industry development is mainly photovoltaic, wind power as the core, solar thermal, biomass can assist. According to IRENA, the cumulative installed capacity of global renewable energy in 2023 will reach 38,645,22MW, of which hydropower will reach 126,4742MW and other non-water renewable energy (new energy) will reach 25,997,80MW, accounting for 67.3% of the global installed capacity, and GAGR from 2012 to 2023 will reach 17.04%. The incremental contribution rate reached 90.89%.

From the perspective of new energy installed structure, wind power and photovoltaic are in the dominant position, and due to the faster decline in economic and technological costs and the rapid release of scale benefits, photovoltaic installed capacity has grown more rapidly. In 2023, the cumulative installed capacity of global PV reached 1411139MW, which is the largest installed capacity of new energy in the world. The second is wind power, with a cumulative installed capacity of 1017390MW; Photovoltaic and wind power accounted for 54.28% and 39.13% respectively.
The current situation of Indonesia's new energy industry
1. Policy support: The Indonesian government has actively promoted energy transformation and formulated a series of policies and plans

2. Renewable energy development:
2.1 Solar energy: Solar energy is currently the main area of green power development in Indonesia. The country has abundant solar energy resources and great potential.
2.2 Geothermal energy: Indonesia is located at the junction of plates and has rich geothermal resources, about 23.7 GW, but the degree of development is relatively low, and it is the key development area to achieve energy transformation in the future.
2.3 Water energy: Water energy resources are also relatively rich, about 75 GW, but the current development and utilization is also not high.
2.4 Biomass energy: Indonesia is a large agricultural country with abundant biomass energy resources and has certain development potential in renewable energy.
With the government's emphasis on energy transformation and the continuous promotion of policies, the new energy industry will receive more financial support and policy preferences, which will attract more domestic and foreign enterprises to participate in the construction of new energy projects in Indonesia, and the development of these related industries will further promote the upgrading and optimization of Indonesia's new energy industry and improve the overall competitiveness of the industry.