Indonesia Energy as a Service
Market is expected to witness significant growth in the forecast period 2024-2028.
Indonesia is the largest economy in Southeast Asia and has a rapidly growing
demand for energy. The country's energy mix is currently dominated by fossil
fuels, but the government has set a target of generating 23% of its electricity
from renewable sources by 2025. To achieve this target, there is a need for
innovative solutions, and one of these solutions is Energy as a Service (EaaS).
EaaS is a business concept that enables businesses and
families to gain access to energy-efficient solutions without investing in
costly infrastructure. The service provider installs, runs, and maintains
energy-efficient technologies and charges a fee based on energy consumption.
This strategy makes it simple and economical for businesses and households to
acquire energy-efficient solutions. Furthermore, increased demand for
energy-efficient Energy as a Service and stringent government regulations aimed
at lowering harmful emissions are likely to boost the Indonesian energy storage
solutions market during the forecast period.
Microgrids are becoming increasingly popular in
Indonesia to provide reliable and affordable energy to remote communities. EaaS
solutions can provide the necessary infrastructure for microgrid systems,
allowing businesses and households to access energy-efficient solutions in
remote areas. The Energy as a Service (EaaS) Market in Indonesia is
still in its early stages, but it is expected to grow rapidly in the coming
years. Currently, Jakarta is the fastest-growing region in the EaaS market in
Indonesia. This is due to several factors, including the region's high
population density, industrial development, and increasing demand for
energy-efficient solutions.
Increasing Demand for Renewable Energy
Renewable
energy sources such as wind, solar, and hydropower are being explored more and
more as viable solutions to Indonesia's energy dilemma. As the need for
cleaner, more sustainable energy sources grows, wind, solar, and hydropower are
becoming attractive alternatives to traditional sources of energy, including
coal and nuclear power plants. With a robust energy-as-a-service industry,
Indonesia is in a prime position to capitalize on the renewable energy boom. Increased
competition in the energy-as-a-service sector can provide more availability and
variety of energy services, giving consumers more choice and driving down
prices. This boosts renewable energy uptake, leading to more efficient
production, resulting in cleaner energy sources and a healthier environment for
everyone. Increased demand creates greater opportunities for companies to
expand or enter the Indonesian energy-as-a-service market, providing more job
opportunities and economic growth.
The growth of the Indonesia EaaS market is being driven by the need for
energy efficiency and cost savings. With energy prices in Indonesia among the
highest in Southeast Asia, many businesses are looking for ways to reduce their
energy costs. EaaS providers can help companies achieve this by offering
energy-efficient solutions, such as LED lighting, smart building systems, and
energy management software. By optimizing energy use and reducing waste, EaaS
providers can help companies save money while reducing their carbon footprint. Finally,
the Indonesia EaaS MARKET is being driven by the increasing focus on
sustainability and corporate social responsibility (CSR). With consumers
becoming more environmentally conscious, many companies are looking to demonstrate
their commitment to sustainability by adopting renewable energy and reducing
their carbon footprint. EaaS providers can help companies achieve these goals
by providing renewable energy solutions and helping them track and report on
their sustainability initiatives.
In conclusion, a range of factors is driving the Indonesia EaaS Market,
including urbanization, the adoption of renewable energy, the need for energy
efficiency and cost savings, and the focus on sustainability and CSR. As the
demand for electricity continues to grow, EaaS providers will play an
increasingly important role in helping companies access reliable and affordable
energy solutions. By leveraging their expertise in renewable energy and energy
management, EaaS providers can help businesses navigate the complex energy
landscape in Indonesia, while contributing to the country's sustainable
development goals
Need for Energy-efficient Solutions.
The need for energy-efficient solutions is a
crucial driver for the growth of the Indonesia energy as a service (EaaS)
market. The need for energy-efficient solutions is set to have a profound
impact on the Indonesia energy as a service market. With the government’s
commitment to reduce energy consumption and increase renewable energy sources,
energy efficiency solutions are gaining momentum. This is driving companies
into exploring innovative solutions to improve their energy efficiency and
reduce their impact on the environment. The Indonesian government has
implemented several policies designed to support and incentivize the adoption
of sustainable energy solutions. In addition, the government has introduced
regulations to promote energy efficiency, reduce emissions, and invest in
renewable energy sources.
The increased focus on energy efficiency is
expected to drive demand for energy as a service solution, such as Demand
Response (DR) services. DR solutions allow companies and households to manage
their power consumption in a more efficient manner by responding to pricing
signals in real-time. As a result, customers can better control their energy
consumption and reduce power consumption costs. Overall, the demand for
energy-efficient solutions will contribute to increased revenue potential in
the Indonesia Energy as a Service Market.
In addition to cost savings, energy-efficient solutions help reduce
carbon emissions, which is crucial for Indonesia's sustainability goals.
Indonesia has committed to reducing its greenhouse gas emissions by 29% by
2030, and adopting energy-efficient solutions is an essential step towards
achieving this target. EaaS providers can help companies reduce their carbon
footprint by providing renewable energy solutions and helping them track and
report on their sustainability initiatives. Another benefit of energy-efficient
solutions is improved energy security. With the growing demand for energy in
Indonesia, it is essential to have a reliable and stable energy supply.
Energy-efficient solutions can help achieve this by reducing energy waste and
optimizing energy use. By adopting energy-efficient solutions, companies can
ensure a stable energy supply and reduce their dependence on the grid.
EaaS providers can help companies take advantage of these incentives and
adopt renewable energy solutions to meet their energy needs. Also,
energy-efficient solutions can improve the comfort and productivity of
buildings. By adopting smart building systems, companies can optimize the use
of energy and improve the indoor environment for employees.
In conclusion, the need for energy-efficient solutions is a crucial
driver for the growth of the Indonesia EaaS Market. Energy-efficient solutions
provide cost savings, reduce carbon emissions, improve energy security, align
with the government's energy policy, and improve the comfort and productivity
of buildings.
Government Initiatives
The Indonesian government recognizes the importance of sustainable
energy and has taken steps to promote the development of EaaS to achieve its
renewable energy goals. To achieve these targets, the government has
implemented a range of policies and incentives, such as feed-in tariffs, tax
exemptions, and investment incentives, to encourage investment in renewable
energy projects. This creates a favorable environment for EaaS providers to
enter the market and offer renewable energy solutions to meet the growing
energy demands.
The government has launched several programs to promote the adoption of
energy-efficient solutions. For instance, the government has launched the
National Energy Efficiency Action Plan (NEEAP) to promote energy-efficient
practices and reduce energy consumption. This initiative provides a favorable
environment for EaaS providers to offer energy-efficient solutions to
businesses and individuals and achieve their energy-saving targets.
The government has implemented regulations and policies to promote the
development of the EaaS market. One such regulation is the Energy Law, which
provides a legal framework for the development of renewable energy and EaaS in
Indonesia. This law encourages private investment in renewable energy projects,
which creates an opportunity for EaaS providers to participate in the
development of renewable energy solutions and services.
Also, the government has launched various initiatives to increase access
to electricity, particularly in rural areas. For instance, the government has
launched the 35,000 MW Electricity Program, which aims to provide access to
electricity to all Indonesian citizens by 2020. This program creates a demand
for energy solutions, particularly in rural areas where traditional power
infrastructure is lacking, which provides an opportunity for EaaS providers to
offer off-grid and renewable energy solutions.
Additionally, the government has recognized the potential of digital
technology to transform the energy sector. The government has launched the
Indonesia Smart City program, which promotes the use of digital technology to
improve energy efficiency, reduce energy consumption and promote renewable
energy solutions. This initiative creates opportunities for EaaS providers to
offer digital solutions, such as smart grid management systems and energy
management software, to optimize energy use and improve the efficiency of the
energy system.
In conclusion,
the Indonesian government initiatives are a significant driving force in the
country's EaaS market. The government's renewable energy targets, energy
efficiency programs, regulations and policies, rural electrification
initiatives, and digital transformation programs create an enabling environment
for EaaS providers to offer renewable energy solutions, energy-efficient
practices, and digital solutions to meet the growing energy demands in
Indonesia.
Recent Development
In January 2020, MTS Systems Corp., a producer of high-performance test and simulation systems and sensors, has announced the acquisition of R&D's operating entities, which include R&D Test Systems, R&D Engineering, R&D Steel, R&D Prague, RGDK Engineering Pvt. Ltd., and R&D Tools and Structures. MTS claims that the acquisition will broaden the company's Test & Simulation technology base and global market position in wind energy, enabling complete project engineering and manufacturing capacity.
In December 2022, NYK has signed a strategic alliance agreement and an investment agreement with PT Pertamina International Shipping (PIS), a shipping subsidiary of PT Pertamina (Persero), an Indonesian state-owned oil and gas firm. The parties had struck an agreement in principle on the investment in October.
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Market Segments
The Indonesia
Energy as a Service Market is segmented into service type, end-user industry,
and region. Based on service type, the market is segmented into power
generation services, energy efficiency & optimization services, operational
& maintenance services and microturbine. Based on end-user industry, the
market is segmented into Industrial and Commercial.
The market analysis studies regional market segmentation, divided among Java, Sumatra,
Kalimantan, Sulawesi and Rest of Indonesia
Market Players
Major
market players of Indonesia Energy as
a Service Market are Schneider Electric Indonesia PT, ENGIE
Indonesia, MTS Systems Corporation, PT Pertamina(Persero), ABM Investama, Honeywell
Indonesia PT, SGS Indonesia, PT. Siemens Indonesia., Indika Energy, Huawei
Technologies. To achieve good market growth, businesses that are active in the market
employ organic tactics such as product launches, mergers, and partnerships.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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By Service Type
By End-User Industry
By Region
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Regional scope
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Java,
Sumatra, Kalimantan, Sulawesi, Rest of Indonesia
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Key companies profiled
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Schneider Electric
Indonesia PT, ENGIE Indonesia, PT Perusahaan Listrik Negara, PT Pertamina(Persero),
ABM Investama, Honeywell Indonesia PT, SGS Indonesia, PT. Siemens Indonesia.,
Indika Energy, Huawei Technologies.
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Customization scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet your exact research
needs. Explore purchase options
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Delivery Format
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PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
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Report Scope:
In this report, Indonesia Energy as a Service Market has been
segmented into following categories, in addition to the industry trends which
have also been detailed below:
·
Energy as a Service Market, By Service Type
o
Power Generation Services
o
Energy Efficiency & Optimization Services
o Operational
& Maintenance Services
·
Energy as a Service Market, By End-User Industry
o Industrial
o Commercial
·
Energy as a Service Market, By Region:
o
Java
o
Sumatra
o
Kalimantan
o
Sulawesi
o
Rest of Indonesia
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in Indonesia Energy as
a Service Market
Available Customizations:
Indonesia Energy as a Service Market with the
given market data, Tech Sci Research offers customizations according to a
company’s specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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