September 1, 2020 Read More →

Indonesia poised to overtake U.S. as biggest geothermal market

Asian Power:

Despite milder growth in the global geothermal sector, Asia is expected to be one of the regions with the largest amounts of geothermal capacity installed over the coming decade alongside Central and Eastern Europe. Fitch expects both regions combined to account for approximately 74% of the global total geothermal capacity additions between 2020 and 2029.

However, geothermal growth will be driven by only a few key markets—particularly in Indonesia—as these resources are restricted to tectonically active areas, and remain fairly dispersed across regions.

Indonesia is expected to overtake the US to become the largest geothermal market globally by 2022, with its geothermal capacity expected to increase from an estimated 2.1GW in end-2019 to 3.6GW by 2029. 

“Many government policies and resolutions are helping to explore reserves of geothermal energy. Approximately 80% of the country’s geothermal reserves are in conserved forests, and the development of projects in these areas requires a presidential decree,” said Ankit Mathur, Practice Head of Power at GlobalData.

According to IEEFA analysts, this includes changing regulations i.e. geothermal energy is not categorized as part of the mining sector, hence giving it a better playing field when applying for forestry use permits.

[Staff Reporter]

More: Investment opportunities, government support drives Asia Pacific’s geothermal growth

Posted in: IEEFA In the News

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