Wind Power Becomes a Global Trend, Policies Encourage Industry Growth in Indonesia

Oct 24, 2023


Wind power generation is one of the most mature, scalable, and commercially promising methods of electricity production within the renewable energy sector. Wind energy resources are widely distributed and abundant worldwide. With the continuous maturation of wind power-related technologies and ongoing equipment upgrades, the global wind power industry is experiencing rapid growth. Currently, over 90 countries worldwide have initiated wind power projects, primarily concentrated in Asia, Europe, and the Americas. Indonesia, one of the rapidly growing economies in Southeast Asia, has also been gradually accelerating its presence in the wind power industry in recent years.

Looking at the actual situation in Indonesia, as the largest energy producer and consumer in Southeast Asia, the country's energy demand is expected to continue to grow strongly. However, as of 2019, renewable energy accounted for only 11.4% of the national energy structure, falling far short of the government's goal of 23% by 2025. In this context, Indonesian authorities are committed to optimizing the power structure and increasing investment in wind and photovoltaic projects. Indonesia, being one of the world's largest archipelagic nations, is naturally endowed with abundant geothermal, wind, solar, and hydro resources, and has ample land for power station construction.

According to a report by the New Horizon Industry Research Center titled "2021 Indonesia Wind Power Industry Market Status and Feasibility Study for Overseas Companies," in recent years, Indonesia's domestic economy has steadily grown, urbanization has accelerated, and the number of cars and motorcycles has continued to increase. Coupled with rapid population growth, this has been expanding the market's demand for energy. As the largest energy-consuming country among ASEAN nations, Indonesia's domestic energy consumption accounts for 38% of the total, with electricity demand expected to double in the next decade. In this context, the Indonesian government has gradually increased its investment in wind and photovoltaic power industries, aligning with the aspirations and demands of the Indonesian people for environmental protection.

However, at present, most wind power construction projects in Indonesia rely on foreign capital and technology. Domestic companies have relatively weaker competitiveness due to technological and equipment limitations, as well as capital constraints. It wasn't until 2019 that Indonesia completed its first domestic wind power plant, located in South Sulawesi, with a total capacity of 75 megawatts, comprising 30 wind turbines. As Indonesia's first wind turbine project, the plant provides electricity to 70,000 customers in the South Sulawesi region, with a uniform power output of 900VA. The establishment of this plant reflects the government's efforts to improve the utilization of renewable energy, greatly contributing to the development of the wind power industry in Indonesia.

New Horizon Indonesia market analysts believe that wind power is one of the most mature, scalable, and commercially promising methods of electricity production in the renewable energy sector. In recent years, the world is facing issues such as energy depletion and environmental pollution, driving the urgent need for clean energy sources worldwide, including Indonesia. It is projected that by 2023, 23% of domestic energy sources in Indonesia will come from wind energy. In summary, Indonesia's wind power industry still holds significant growth potential for the future.



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