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Published Date: 2015-04-29Number of Pages: 158

Power Generation Market by Technology (Coal-fired, Natural Gas-fired, Oil-fired, Geothermal, Hydro, and Combined Cycle Power Generation) - Indonesia Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2022

Rapidly developing economies in Asia Pacific such as China, India, and Indonesia are some of the major consumers of electricity in this region. On the regional level, Asia Pacific is expected to retain its position as the leading power generator in the world during the forecast period. This is due to the aggressive plant installation plans and rural electrification initiatives to fulfill growing demand from the rural sector in the region. Coal is the primary source of power generation in Asia Pacific, accounting for nearly 58.9% of the total capacity installations in 2013 in the region. A country’s economic growth is highly reliant on the development of its electricity sector. Indonesia is currently experiencing a phase of high economic growth, which needs to be supported by an equivalent growth in the volume of electricity supply.

 

The Indonesian government has set targets to increase electrification rates and to reduce greenhouse gas emissions by 2020. In order to support this target, the government has also implemented various laws and legislations for enforcing development of this sector. Investment-friendly policies such as competitive bidding for awarding exploration projects, and exemption from custom and other duties on imported equipment are boosting investments in the sector. Indonesia’s two-phase accelerated development program is anticipated to encourage renewable energy utilization. The program is also expected to rapidly increase power generation capacity, while gradually phasing out oil-fired power plants from the country. 

 

The Indonesian government has implemented several new laws and regulations to stimulate renewable energy production in the country. The government has introduced several policy and financial support mechanisms for the promotion of renewable power generation in the country. This includes feed-in-tariffs (FITs) for renewable energy production that help provide moderate return on investments for foreign investors and independent power producers (IPPs) willing to invest in the country’s renewable energy sector.

 

For this market study, power generation technologies have been bifurcated into coal-fired, natural gas-fired, oil-fired, geothermal, hydro, and combined cycle power generation. Coal-fired power generation plants play a significant role in fulfilling the growing demand for power in the country. Indonesia has abundant coal reserves and the domestic mining companies are playing an instrumental role in the growth of the coal-fired power generation sector in the country. Investments are also anticipated to increase in the power infrastructure sector in Indonesia. The government has implemented several policies to attract foreign investments in the power generation sector in Indonesia. Combined cycle gas-fired power plants also account for a significant share of Indonesia’s power generation mix. The government has taken several steps to promote the installation of combined cycle gas-fired power plants to boost Indonesia’s power generation capacity. Combined cycle power plants accounted for 20.0% of the country’s power generation capacity in 2013.

 

Geothermal power generation accounted for a mere share in the overall power generation capacity in Indonesia in 2013. Although Indonesia has the largest reserves of geothermal energy in the world, it has not yet fully-utilized these reserves. Indonesia’s energy subsidies represent a significant financial burden on the national government. Payments of energy subsidies have reduced the country’s annual GDP by nearly 3% since fiscal year 2010. This has led to intermittent macroeconomic instability in the country causing other core development expenditure to take a back seat. Moreover, the current pricing system for electricity encourages wasteful consumption and further contributes to the deterioration of Indonesia’s trade balance. The Indonesian government plans to further increase electricity tariff during 2014 for reducing subsidies. However, as the government successfully reduces its energy subsidy bills, the annual growth in electricity tariff is expected to reduce in the mid- to long-term future. This has been considered while estimating the market size for the second half of the forecast period (2019–2022).

 

Key players in the power generation market in Indonesia include PT PLN Persero, PT Indonesia Power, PT Pembangkitan Jawa Bali, PT Pertamina Geothermal Energy, and PT Jawa Power. The other players profiled in this report are Alstom, PT Arutmin Indonesia, Asia Resource Minerals plc, Chevron Indonesia, Hyundai Engineering Co. Ltd., Medco Power Indonesia, Mitsubishi Heavy Industries Ltd., PT Adaro Energy Tbk., PT Bumi Resources Tbk., PT Cirebon Electric Power, PT Geo Dipa Energi, PT Harum Energy Tbk., PT Wartsila Indonesia, Siemens AG, and United Coal Indonesia.

 

 

 

Chapter 1 Preface

1.1 Report Description

1.2 Research Scope

1.3 Market Segmentation

1.4 Research Methodology

 

Chapter 2 Executive Summary

2.1 Indonesia Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

2.2 Indonesia Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

 

Chapter 3 Indonesia Power Generation Market – Industry Analysis

3.1 Introduction

3.2 Value Chain Analysis

      3.2.1 Coal-fired Power Generation Market

      3.2.2 Natural Gas-fired Power Generation Market

      3.2.3 Oil-fired Power Generation Market

      3.2.4 Geothermal Power Generation Market

      3.2.5 Hydro Power Generation Market

      3.2.6 Combined Cycle Power Generation Market

3.3 Market Dynamics

      3.3.1 Market Drivers

              3.3.1.1 Mining Companies in Indonesia Playing Active Role in Developing Coal-Fired Power Plants

              3.3.1.2 Burgeoning Mining and Quarrying Sector Expected to Support Growth in Power Generation Industry

              3.3.1.3 Abundance of Natural Gas Reserves Boosting Development of Gas-Fired Power Generation Industry

      3.3.2 Market Restraints

              3.3.2.1 Lack of Proper Infrastructure is Severely Hampering Power Generation Capacity Additions

      3.3.3 Market Opportunity

              3.3.3.1 Growth in Foreign Direct Investments Can be Highly Beneficial for Power Generation Sector

              3.3.3.2 Conducive Government Policies and Incentives Targeted Towards Renewable Energy Resources Development

3.4 Porter’s Five Forces Analysis

      3.4.1 Bargaining Power of Suppliers

      3.4.2 Bargaining Power of Buyers

      3.4.3 Threat from Substitutes

      3.4.4 Threat from New Entrants

      3.4.5 Degree of Competition

3.5 Technology Trend Analysis

      3.5.1 Coal-fired Power Generation

      3.5.2 Natural Gas-fired Power Generation

      3.5.3 Oil-fired Power Generation

      3.5.4 Geothermal-fired Power Generation

      3.5.5 Hydro Power Generation

      3.5.6 Combined Cycle Power Generation

3.6 Market Attractiveness Analysis

      3.6.1 Market Attractiveness Analysis of Indonesia Power Generation Market, by Technology, 2013

3.7 Company Market Share Analysis

      3.7.1 Indonesia Power Generation Market: Company Market Share Analysis, 2013 (%)

 

Chapter 4 Indonesia Power Generation Market – Technology Analysis

4.1 Indonesia Power Generation Market: Technology Overview

      4.1.1 Indonesia Power Generation Capacity Estimates and Forecast, by Technology, 2013 & 2022 (GW)

4.2 Coal-fired Power Generation

      4.2.1 Indonesia Coal-fired Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

      4.2.2 Indonesia Coal-fired Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

4.3 Natural Gas-fired Power Generation

      4.3.1 Indonesia Natural Gas-fired Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

      4.3.2 Indonesia Natural Gas-fired Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

4.4 Oil-fired Power Generation

      4.4.1 Indonesia Oil-fired Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

      4.4.2 Indonesia Oil-fired Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

4.5 Geothermal Power Generation

      4.5.1 Indonesia Geothermal Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

      4.5.2 Indonesia Geothermal Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

4.6 Hydro Power Generation

      4.6.1 Indonesia Hydro Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

      4.6.2 Indonesia Hydro Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

4.7 Combined Cycle Power Generation

      4.7.1 Indonesia Combined Cycle Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

      4.7.2 Indonesia Combined Cycle Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

 

Chapter 5 Company Profiles

5.1 Alstom

      5.1.1 Company Overview

      5.1.2 Financial Overview

      5.1.3 Business Strategy

      5.1.4 Technical Performance Analysis

      5.1.5 Operational Standards

      5.1.6 Awards and Achievements

5.2 Asia Resource Minerals plc

      5.2.1 Company Overview

      5.2.2 Financial Overview

      5.2.3 Business Strategy

      5.2.4 Technical Performance Analysis

      5.2.5 Operational Standards

      5.2.6 Awards and Achievements

5.3 Chevron Indonesia

      5.3.1 Company Overview

      5.3.2 Financial Overview

      5.3.3 Business Strategy

      5.3.4 Technical Performance Analysis

      5.3.5 Awards and Achievements

5.4 Hyundai Engineering Co. Ltd.

      5.4.1 Company Overview

      5.4.2 Financial Overview

      5.4.3 Business Strategy

      5.4.4 Technical Performance Analysis

      5.4.5 Operational Standards

      5.4.6 Awards and Achievements

5.5 Mitsubishi Heavy Industries, Ltd.

      5.5.1 Company Overview

      5.5.2 Financial Overview

      5.5.3 Business Strategy

      5.5.4 Technical Performance Analysis

      5.5.5 Operational Standards

      5.5.6 Awards and Achievements

5.6 PT Adaro Energy Tbk.

      5.6.1 Company Overview

      5.6.2 Financial Overview

      5.6.3 Business Strategy

      5.6.4 Technical Performance Analysis

      5.6.5 Operational Standards

      5.6.6 Awards and Achievements

5.7 PT Arutmin Indonesia

      5.7.1 Company Overview

      5.7.2 Financial Overview

      5.7.3 Business Strategy

      5.7.4 Technical Performance Analysis

      5.7.5 Operational Standards

      5.7.6 Awards and Achievements

5.8 PT Bumi Resources Tbk.

      5.8.1 Company Overview

      5.8.2 Financial Overview

      5.8.3 Business Strategy

      5.8.4 Technical Performance Analysis

      5.8.5 Operational Standards

      5.8.6 Awards and Achievements

5.9 PT Geo Dipa Energi

      5.9.1 Company Overview

      5.9.2 Financial Overview

      5.9.3 Business Strategy

      5.9.4 Technical Performance

      5.9.5 Operational Standards

      5.9.6 Awards and Achievements

5.10 PT Indonesia Power

      5.10.1 Company Overview

      5.10.2 Financial Overview

      5.10.3 Business Strategy

      5.10.4 Technical Performance

      5.10.5 Operational Standards

      5.10.6 Awards and Achievements

5.11 PT Jawa Power

      5.11.1 Company Overview

      5.11.2 Financial Overview

      5.11.3 Business Strategy

      5.11.4 Technical Specifications

      5.11.5 Operational Standards

      5.11.6 Awards and Achievements

5.12 Pt Medco Power Indonesia

      5.12.1 Company Overview

      5.12.2 Financial Overview

      5.12.3 Business Strategy

      5.12.4 Technical Performance Analysis

      5.12.5 Operational Standards

      5.12.6 Awards and Achievements

5.13 PT Pembangkitan Jawa-Bali

      5.13.1 Company Overview

      5.13.2 Financial Overview

      5.13.3 Business Strategy

      5.13.4 Technical Specification

      5.13.5 Operational Standards

      5.13.6 Awards and Achievements

5.14 PT Pertamina Geothermal Energy

      5.14.1 Company Overview

      5.14.2 Financial Overview

      5.14.3 Business Strategy

      5.14.4 Technical Performance Analysis

      5.14.5 Operational Standards

      5.14.6 Awards and Achievements

5.15 PT PLN (Persero)

      5.15.1 Company Overview

      5.15.2 Financial Overview

      5.15.3 Business Strategy

      5.15.4 Technical Performance Analysis

      5.15.5 Operational Standards

      5.15.6 Awards and Achievements

5.16 PT United Coal Indonesia

      5.16.1 Company Overview

      5.16.2 Financial Overview

      5.16.3 Business Strategy

      5.16.4 Technical Performance Analysis

      5.16.5 Operational Standards

      5.16.6 Awards and Achievements

5.17 PT Wartsila Indonesia

      5.17.1 Company Overview

      5.17.2 Financial Overview

      5.17.3 Business Strategy

      5.17.4 Technical Performance Analysis

      5.17.5 Operational Standards

      5.17.6 Awards and Achievements

5.18 PT. Cirebon Electric Power

      5.18.1 Company Overview

      5.18.2 Financial Overview

      5.18.3 Business Strategy

      5.18.4 Technical Performance Analysis

      5.18.5 Operational Standards

      5.18.6 Awards and Achievements

5.19 PT. Harum Energy Tbk.

      5.19.1 Company Overview

      5.19.2 Financial Overview

      5.19.3 Business Strategy

      5.19.4 Technical Performance Analysis

      5.19.5 Operational Standards

      5.19.6 Awards and Achievements

5.20 Siemens AG

      5.20.1 Company Overview

      5.20.2 Financial Overview

      5.20.3 Business Strategy

      5.20.4 Technical Performance Analysis

      5.20.5 Operational Standards

      5.20.6 Awards and Achievements

List of Figures 

 

FIG. 1 Indonesia Power Generation Market: Market Segmentation

FIG. 2 Indonesia Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 3 Indonesia Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

FIG. 4 Coal-fired Power Generation Market: Value Chain Analysis

FIG. 5 Natural Gas-fired Power Generation Market: Value Chain Analysis

FIG. 6 Oil-fired Power Generation Market: Value Chain Analysis

FIG. 7 Geothermal Power Generation Market: Value Chain Analysis

FIG. 8 Hydro Power Generation Market: Value Chain Analysis

FIG. 9 Combined Cycle Power Generation Market: Value Chain Analysis

FIG. 10 Indonesia: Coal Production and Consumption, 2006 – 2013 (Million Tons of Oil Equivalent, MTOE)

FIG. 11 Indonesia: Foreign Direct Investments, 2011 – 2013

FIG. 12 Indonesia: Foreign Direct Investments, 2006 – 2013

FIG. 13 Indonesia Power Generation Market: Porter’s Five Forces Analysis

FIG. 14 Market Attractiveness Analysis of Indonesia Power Generation Market, by Technology, 2013

FIG. 15 Company Market Share of Indonesia Power Generation Market, 2013 (%)

FIG. 16 PT PLN Corporate Structure and its Subsidiaries

FIG. 17 Indonesia Power Generation Capacity Estimates and Forecast, by Technology, 2013 & 2022 (GW)

FIG. 18 Indonesia Coal-fired Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 19 Indonesia: Coal Production and Exports, 2007 – 2013 (Million Tons)

FIG. 20 Indonesia Coal-fired Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

FIG. 21 Indonesia Natural Gas-fired Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 22 Indonesia Natural Gas-fired Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

FIG. 23 Indonesia Oil-fired Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 24 Indonesia Oil-fired Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

FIG. 25 Indonesia Geothermal Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 26 Indonesia Geothermal Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

FIG. 27 Indonesia Hydro Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 28 Indonesia Hydro Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

FIG. 29 Indonesia Combined Cycle Power Generation Capacity Estimates and Forecast, 2013 – 2022 (GW)

FIG. 30 Indonesia Combined Cycle Power Generation and Revenue Estimates and Forecast, 2013 – 2022 (TWh) (USD Billion)

List of Tables

 

TABLE 1 Indonesia Power Generation Market: Snapshot

TABLE 2 Market Drivers of Indonesia Power Generation Market: Impact Analysis

TABLE 3 Market Restraints of Indonesia Power Generation Market: Impact Analysis

TABLE 4 Market Opportunity of Indonesia Power Generation Market: Impact Analysis

TABLE 5 Alstom: Technical Performance Analysis for Major Plants

TABLE 6 Alstom: Awards and Achievements

TABLE 7 Hyundai Engineering Co., Ltd.: Technical Performance Analysis for Major Plants

TABLE 8 Mitsubishi Heavy Industries, Ltd.: Technical Performance Analysis for Major Projects

TABLE 9 Mitsubishi Heavy Industries, Ltd.: Awards and Achievements

TABLE 10 PT Adaro Energy Tbk.: Technical Performance Analysis for Major Plants

TABLE 11 PT Adaro Energy Tbk.: Awards and Achievements

TABLE 12 PT Arutmin Indonesia: Technical Performance Analysis, by Terminals

TABLE 13 PT Arutmin Indonesia: Technical Performance Analysis, by Coal Mines

TABLE 14 PT Arutmin Indonesia: Awards and Achievements

TABLE 15 PT Bumi Resources Tbk.: Technical Performance Analysis for Major Projects

TABLE 16 PT Bumi Resources Tbk.: Awards and Achievements

TABLE 17 PT Indonesia Power : Operational Standards

TABLE 18 PT Indonesia Power : Awards and Achievements

TABLE 19 PT Jawa Power: Awards and Achievemnets

TABLE 20 PT Medco Power Indonesia: Technical Performance Analysis for Major Plants

TABLE 21 PT Medco Power Indonesia: Awards and Achievements

TABLE 22 PT Pembangkitan Jawa-Bali: Operational Standards, by C ertificate Type

TABLE 23 PT Pertamina Geothermal Energy: Operational Standards, by Certificate Type

TABLE 24 PT Pertamina Geothermal Energy: Awards and Achievements

TABLE 25 PT PLN (Persero): Technical Performance Analysis

TABLE 26 PT PLN (Persero): Awards and Achievements

TABLE 27 PT United Coal Indonesia: Technical Performance Analysis

TABLE 28 PT Wartsila Indonesia : Operational Standards

TABLE 29 PT Adaro Energy Tbk.: Awards and Achievements

TABLE 30 PT. Harum Energy Tbk.: Technical Performance Analysis for Coal Mining Operations

TABLE 31 PT. Harum Energy Tbk.: Awards and Achievements

TABLE 32 Siemens AG: Technical Performance Analysis

 

The power industry is one of the largest and essential industries globally. There is a direct correlation between the development of a nation and its power industry. No country can achieve economic and social prosperity without adequate investments in electrification across the nation. Several power projects are planned in developing economies in Asia Pacific as these economies continue to expand their power generation capacities to meet the rising electricity demand. In the last few years, several developed economies have permitted the entry of private companies in the power industry. This step has introduced competition in the power industry, especially in the generation and retail supply of electricity. This market liberalization has further improved production efficiency of the overall industry. 

 

In Indonesia, the power generation market is still dominated by the government-owned PT PLN. Approximately 85% of power generation facilities and the entire transmission & distribution network is solely controlled by PT PLN. The coal mining industry is developed in Indonesia with several private players investing in this market. Coal still continues to account for a major share in the global power generation industry. Although the share of coal is anticipated to decline in the future years, it would continue to be the major fuel in the short-term outlook.

 

This research study is designed to analyze the power generation market in Indonesia. The market is calculated in terms of power generation capacity (GW), power generation (TWh), and revenue (USD Billion). The market for power generation has been segmented on the basis of six major power generation technologies in Indonesia. These include coal-fired, natural gas-fired, oil-fired, geothermal, hydro, and combined cycle (gas-steam). The report provides growth forecast for the period 2014–2022. Projections have been provided for power generation installed capacities, power generation, and revenue. The study on the power generation market also provides historical data, detailed analysis, and statistically refined forecast for key technology segments.

 

The size of the power generation market has been estimated based on indicators in technology segments. The report includes the key market dynamics affecting the demand for power generation technologies. As a part of our market dynamics analysis, we have analyzed market drivers, market restraints, and market opportunities in Indonesia. A comprehensive landscape, which includes company market share analysis and market attractiveness analysis, has also been provided in this report. Company market share analysis has been provided for major players involved in power generation in Indonesia. Market attractiveness analysis has been provided for six power generation technologies in Indonesia. 

 

The report also provides a detailed industry analysis of the power generation market in Indonesia with the help of Porter’s Five Forces Model. The Porter’s Five Forces analysis aids in understanding the five major forces that affect the industry structure and profitability of the global power generation technology market. The forces analyzed are the bargaining power of buyers, bargaining power of suppliers, threat from new entrants, threat from substitutes, and degree of competition. The Porter’s Five Forces analysis has been provided across the geographies studied in the report.

 

The report features an in-depth analysis of trends observed in each of the power generation technology segments provided in the report. Various new technologies, which are influencing the market dynamics of each power generation technology, have been identified and highlighted. Emerging trends for each power generation technology have been addressed for Indonesia. 

 

The study also includes the value chain of the power generation market in Indonesia, which provides a glimpse of fuel procurement, contract awarding, power generation, as well as the interaction of suppliers and buyers with the end-users of the product. The market attractiveness has been primarily done considering the market size and market growth. Besides market size and growth, government support, regulatory policies, environment benefits, and availability of resources have also been considered to rank/benchmark major technologies for each region.

 

Key participants in the power generation market in Indonesia include Alstom S.A., PT Arutmin Indonesia, Asia Resource Minerals plc, Chevron Indonesia, Hyundai Engineering Co. Ltd., Medco Power Indonesia, Mitsubishi Heavy Industries Ltd., PT Adaro Energy Tbk., PT Bumi Resources Tbk., PT Cirebon Electric Power, PT Geo Dipa Energi, PT Harum Energy Tbk., PT Indonesia Power, PT Jawa Power, PT Pertamina Geothermal Energy, PT PLN, PT Wartsila Indonesia, PT. Pembangkitan Jawa-Bali, Siemens AG, United Coal Indonesia. This report provides an overview of these companies, followed by their financial revenues, business strategies, technical performance analysis, operational standards, and awards and achievements.

  • Indonesia Power Generation Market: Technology Analysis

    • Coal-fired Power Generation
    • Natural Gas-fired Power Generation
    • Oil-fired Power Generation
    • Geothermal Power Generation
    • Hydro Power Generation
    • Combined Cycle Power Generation


 
 
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