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Indonesia Small Wind Power Market Analysis Trends, Opportunities, and Challenges

Indonesia Small Wind Power Market

Indonesia’s small wind power market holds significant potential, particularly given the country’s need to electrify remote islands and off-grid communities. Although wind energy development in Indonesia has been historically focused on larger installations, small wind turbines are increasingly viewed as a viable solution for isolated areas where grid expansion is costly and challenging. With support from international organizations and government initiatives, small wind systems are gradually being introduced as part of Indonesia’s broader renewable energy strategy.

The main challenge in this market lies in the economic feasibility of installations, as high import costs for technology and equipment can deter widespread adoption. Local government partnerships and incentives could catalyze market growth by reducing import barriers and promoting domestic production. Furthermore, small wind power could complement other renewable sources like solar and hydro, offering hybrid solutions tailored to the unique geographic and weather conditions across Indonesia’s islands. With continued government support and technological adaptation, small wind power can contribute to Indonesia’s ambitious renewable energy goals.

Small wind turbines are defined as turbines with a capacity of less than 100 kW. They are typically used to power homes, businesses, and farms in remote areas or areas with limited grid access.

Small wind turbines are also becoming increasingly popular for use in urban and suburban areas as a way to reduce energy costs and carbon emissions.

The global small wind power market is expected to grow from USD 5,630 Million in 2022 to USD 21,688.06 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 14.33% during the forecast period (2024 - 2032).

Small wind power consists of a respective group of devices developed within the wind energy sector. Wind power plants in this division are usually designed for small and individual customers like as households, farms, weather stations, road signalization, and advertising systems. They tender a promising alternative for numerous remote electrical uses both as stand-alone applications and in combination with different energy conversion technologies similar to photovoltaic, small hydro, or diesel engines.

Small wind energy is an adaptive and adaptable option for generating sustainable electricity. They're favorites in farmhouses, remote and rural areas, telecommunication towers, houses, and tall buildings, operating as standalone or grid-connected units. SWTs are easier to install and operate than their larger counterparts and are located nearby areas where there's a need for energy. They can correspondingly be installed at locations with a reasonable wind resource that's geographically unsuitable for large wind projects due to environment, logistics, or infrastructure-related constraints.

Various nations have embraced comprehensive policy frameworks to support renewable energy, leading to a blistering scale-up of these technologies. One hundred and nine nations have enacted some form of policy regarding renewable power, and 118 nations have set targets for renewable energy. The small wind power market worldwide is passing unprecedented heights and herding the global economy toward supreme growth.

Key Players

  • Northern Power Systems Corp. (U.S.)
  • Kingspan Group Plc. (Ireland)
  • Bergey Wind Power Co. Inc. (U.S.)
  • L. (Spain)
  • Ennera Energy and Mobility
  • Eocycle Technologies Inc. (Canada)
  • Guangzhou HY Energy Technology Co. Ltd (China)
  • Shanghai Ghrepower Green Energy Co. Ltd (China)
  • Endurance Wind Power Inc. (Canada)
  • XZERES Wind Corporation (U.S.)
  • City Windmills Holdings PLC (U.K.)
  • Aeolos Wind Energy Ltd (U.K.), among others

Regional Analysis

The global Residential wind turbines Market is divided into five regions; North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

Asia Pacific is considered for a 19.5% revenue share in the overall market for small wind in 2021 and is expected to register significant gains over the forecast period. The region is fronting a large-scale energy crisis which is anticipated to enhance in the foreseeable future owing to fast-depleting resources. The Asia Pacific is awaited to be the second-largest market during the forecast period.

Europe came up as the global leader with a revenue share of a 43.2% in 2021. Germany and the U.K. gripped the maximum share in Europe, nearly dominating the market primarily owing to large-scale funding received by both nations cumulatively. The U.K. is a significant market in Europe occupying a 25% of the market. The changes in the Feed-In scheme introduced in the UK possessed a huge impact on market growth during the last years.

The North American market of small wind was running as the second-largest region in terms of both volume and revenue in 2021.

Market Segmentation

The global Small Wind Power Market is segmented into the following types;                    

By Grid Connectivity

  • On-Grid
  • Off-Grid

By Axis

  • Horizontal
  • Vertical

By Capacity

  • Up to 2kW
  • 2kW to 5kW
  • 5kW to 10kW

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