Indonesia Geothermal Energy Market

Indonesia Geothermal Energy Market is predicted to grow at faster CAGR during the forecast period due to the growing demand for sustainable energy and the severe repercussion of the greenhouse effect of conventional energy has increased the utilization of geothermal energy.

Introduction of the Indonesia Geothermal Energy Market Report

Geothermal energy is heat-derived energy within the sub-surface of the earth. It is carried to the earth’s surface in the form of water or steam. However, high or medium temperature resources are needed for electricity generation, which is usually located close to tectonically active region. Countries like Iceland, Indonesia, New Zealand, and many other countries depend on geothermal for electricity generation.

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Market Dynamic

Key Drivers and Emerging Trends

The growing demand for sustainable energy and the severe repercussion of the greenhouse effect of conventional energy has increased the utilization of geothermal energy. The factors driving the Indonesia Geothermal Energy Market include increasing concern about C02 gas emission. According to the report by the Indonesia Ministry of Development Planning in 2019, Indonesia is anticipated to reduce greenhouse gas emissions by 43% by 2030, exceeding the current climate commitment, which will likely to create a high demand for geothermal energy over the forecasted period.

Furthermore, growing investment in geothermal energy exploration and production to satisfy the country energy need. Indonesia is home to 260 million people (the fourth largest population in the world), and its economy is continuously growing at 5% per annum. The country seeks to improve its infrastructure to supply electricity to all its 17000 plus islands by recognizing its geothermal resources may provide seeking the challenge with significant investment in the resources. According to Institute for Essential Services Reform, in December 2019, total investment in renewable energy and energy conservation reached USD 1.17 billion. Most of the investment in renewable comes from geothermal power, contributing to 44% at USD 518 million, and are expected to grow due to commitment of reducing greenhouse gas emission. Moreover, World Bank approved a $ 150 million loan in 2019 for Indonesia to scale up investment in geothermal energy by reducing early-stage exploration risk, which signifies the future prospect growth of the geothermal energy market.

Restraint in the Indonesia Geothermal Energy Market

However, some geothermal locations are located in mountainous areas where the topography and soil surface conditions are challenging in making access roads and other support facilities and can cause a problem during exploration and production, which can hamper the overall growth of Indonesia Geothermal Energy Market.

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Well Type – Segment Analysis

Based on the well type, slim well is expected to grow at the fastest rate in the Indonesia Geothermal Energy Market during the forecast period owing to favorable government support encouraging new slim hole drilling. For instance, Head of the Geological Agency of the Ministry of Energy and Mineral Resources in 2021, slim well drilling campaign starting at Cisolok geothermal site, Cisolok will be carried out at two well locations, namely CKK-01 and CKK-02. Ministry added that the potential development of the CKK-02 well is accomplished by land acquisition considering the location is in a community area. In this area, the resource potential is predicted to reach 45 MW which signifies the future growth of the slim well over the forecasted period.

End-Use – Segment Analysis

Based on the end-use, power generation is expected to grow at a high CAGR over the forecast period in the Indonesia Geothermal Energy Market due to curtailing dependency on conventional energy and shifting toward geothermal energy. For instance, in 2019, Minister of Finance of the Republic of Indonesia said, Geothermal is environmentally sustainable and developing this sector is an integral part of Indonesia’s overall energy security, as well as making Indonesia less dependent on imported fuels. Furthermore, Indonesia National Energy Policy call for a reduction of petroleum use to 25% of its primary energy supply while raising the renewable to 23% by 2025.

Technology – Segment Analysis

Based on the technology, flash is expected to capture the largest market share in the Indonesia Geothermal Energy Market in upcoming years due to its extended plant capacity at high temperatures greater than 180C (vapour-dominated field). Flash plants differ in size depending on whether they are single (0.2-80 MW), double – (2-110 MW), or triple-flash (60- 150 MW) plants. A 55 MW geothermal power plant is commissioned at Pathua Unit 2 based on the demand, flash technology is expected to witness significant growth during the forecasted period.

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Key Developments:

• • In 2021, Ormat Technologies Inc and PT Archi Indonesia Tbk, one of the largest pure-play gold mining companies in Indonesia and Southeast Asia announced to develop exploration drilling program of geothermal facilities prospect in North Sulawesi, Indonesia
  • In 2021, Pertamina Geothermal Energy (PGE) has planned to expand its installed geothermal power plant capacity in order to provide greater contribution to the reduction of greenhouse gas emissions in Indonesia, and support achieving the sustainable development goals (SDGs) on climate action, through implementing Environmental, Social, & Governance (ESG) based programs. 

Segments covered in the Report:

The Indonesia Geothermal Energy Market has been segmented on the basis of well type, end-Use, depth, technology. Based on well type, the market is segmented into production, injection, and slim. Based on end-use, the market is segmented into Power Generation, and others. Based on depth, the market is segmented into Below 1000m, 1001-2000m, 2001-3000m and above 3001m. Based on technology the market is segmented into binary, direct steam, enhanced geothermal and others. 

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Key questions answered in this research report:

• • At what pace is Indonesia Geothermal Energy Market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Indonesia Geothermal Energy Market? What will be the impact of drivers and restraints in the future?
  • Which well type generated maximum revenues in 2020 and identify the most promising well type during the forecast period?
  • What are the various end-use areas of Indonesia Geothermal Energy Market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2020
Market Forecast Period	2021-2028
Market Revenues Currency	USD Million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Well Type, By End-Use, By Depth, By Technology
Companies Profiled	Profiles of Top 10 Major Companies Operating in “Indonesia Geothermal Energy Market”
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Indonesia Geothermal Energy Market by Well Type

• • Production
  • Injection
  • Others

Indonesia Geothermal Energy Market by End-Use

• • Power Generation
  • Others

Indonesia Geothermal Energy Market by Depth

• • Below 1000m
  • 1000-2000m
  • Above 2000-3000m
  • Above 3000m

Indonesia Geothermal Energy Market by Technology

• • Binary
  • Direct Steam
  • Enhanced Geothermal
  • Others