Indonesia is making significant strides in developing Distributed Energy Resources (DER) and Smart Grids as part of its renewable energy strategy. The country's electricity generation from renewable energy market is expected to reach 63.21 billion kilowatt hours (kWh) in 2025, with an estimated annual growth rate of 3.09% from 2025 to 2029.
This growth is driven by Indonesia's ambitious climate goals and efforts to cut reliance on fossil fuels. Solar energy is a key part of Indonesia's DER strategy. Electricity generation in the solar energy market is expected to reach 179.37 million kWh in 2025, growing at 1.83% annually from 2025 to 2029.
The country is also leveraging its vast geothermal resources to improve energy independence and reduce carbon emissions. Indonesia is also investing in biofuels, with targets set for both bioethanol and biodiesel blending in various sectors.