The country’s rapid economic growth has resulted in power demand in the country increasing by 7% each year . Even higher demand is anticipated in the future with an annual growth rate of 9.2 % expected to continue until 2019.
Indonesia alone holds 40% of the world’s total geothermal reserves, however currently only less than 4% is being developed, leaving the sector wide open for growth.
Renewable Energy Indonesia 2013Rising coal and oil prices and the commitment to green technology are driving the government’s national energy policy to increase the use of natural gas and renewable energy recourses. With 55% of new production being slated towards renewable power generation, total private sector investments by IPPs are expected to reach US$ 11.11billion by 2014.
The government of Indonesia is committed to reducing greenhouse gas emissions by 26% by 2020. In addition the Clean Technology Fund (CTF) Investment Plan for Indonesia proposes co-?nancing of US$400 M to support Indonesia’s goals of providing 17% of total energy use from renewable energy by 2025.
The Indonesian government is projecting electricity demand to increase by 9.5% annually for the next five years. A substantial portion of the growing demand will come from continued electrification as traditional wood, charcoal and kerosene energy sources are replaced by electricity. National electrification rates are projected to hit 93% by 2025.
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