Geothermal Energy Market Analysis

Geothermal Energy Market Analysis

Geothermal energy market in Indonesia is anticipated to reach over 19 billion by 2032. Indonesia is one of the top countries with strong geothermal potential and as Southeast Asian nations promote geothermal energy in a bid to achieve carbon neutrality, geothermal projects are gaining traction and attracting massive foreign investments. To that effect, leading businesses are trying to strengthen and highlight renewable energy initiatives. For instance, in January 2023, INPEX CORPORATION, a Japanese oil company, expanded its geothermal business in Indonesia by partnering with Rajabasa Geothermal Project through INPEX GEOTHERMAL, LTD., a subsidiary created to conduct geothermal business.
 

In terms of technology, the geothermal energy market from binary segment generated more than USD 15 billion in revenue in 2022 on account of its high efficiency, minimal emissions, and ease of integration with several other energy sources such as hydropower, solar, and others. In February 2022, Pertamina Geothermal Energy completed the building of a binary cycle geothermal power plant at Lahendong, Tomohon, North Sulawesi. This small-scale power plant with a capacity of 0.5 MW offers development prospects for other small-scale PLTPs. Such initiatives are likely to contribute to segment growth through 2032.