Indonesia to miss 2025 geothermal energy target, association warns - Asia News Network

Indonesia to miss 2025 geothermal energy target, association warns - Asia News Network

Published December 15, 2025

Indonesia to Fall Short of 2025 Geothermal Energy Goals, Industry Association Warns

Indonesia is projected to miss its geothermal energy target for 2025, according to a warning issued by the Indonesian Geothermal Association (API). The country has set ambitious goals for developing its geothermal resources, yet the current pace of progress suggests that these targets may not be met.

The Indonesian government has aimed to increase the geothermal energy capacity to 7,200 megawatts (MW) by 2025. This target is part of the broader strategy to enhance the role of renewable energy in the national energy mix. However, as of now, the installed geothermal capacity stands at approximately 2,200 MW. This indicates a significant gap that needs to be addressed in order to meet the set goals.

API has expressed concerns over several factors contributing to the slow development of geothermal projects. One of the primary issues is the lengthy permitting process, which can delay projects significantly. Additionally, the association noted that financing remains a challenge, as many investors are hesitant to commit to geothermal projects due to the high upfront costs and perceived risks involved.

The association's chairman, Felix Siauw, highlighted that the government must take more decisive actions to streamline regulations and improve the investment climate for geothermal energy. He emphasized that without substantial changes, the country will struggle to attract the necessary investments to meet its geothermal targets.

Moreover, the API pointed to the need for enhanced collaboration between the government and private sector stakeholders. Such partnerships are essential for sharing knowledge, resources, and risks associated with geothermal development. The association believes that fostering a conducive environment for collaboration could accelerate project timelines and ultimately lead to a more robust geothermal sector.

In addition to regulatory and financial hurdles, the API also raised concerns about the lack of skilled workforce in the geothermal sector. Training and capacity-building initiatives are crucial to equip local professionals with the necessary skills to support the growth of this industry.

The Indonesian government has recognized the importance of geothermal energy as a clean and sustainable source of power. Geothermal energy is seen as a key component in achieving the country’s renewable energy targets, which include a commitment to derive 23% of its total energy supply from renewable sources by 2025.

Geothermal energy offers numerous advantages, including a stable and reliable power supply, low greenhouse gas emissions, and the potential for job creation in local communities. However, harnessing these benefits requires overcoming the current challenges faced by the sector.

As part of its efforts to boost geothermal energy development, the Indonesian government has introduced various incentives, including tax breaks and subsidies for geothermal projects. These measures aim to attract both domestic and international investors to the sector.

Despite these initiatives, the API warns that the current progress is insufficient to meet the ambitious 2025 target. The association is calling for urgent action from the government to address the existing barriers and enhance the overall investment climate for geothermal energy.

In conclusion, while Indonesia has significant potential for geothermal energy development, the path to achieving the 2025 target remains fraught with challenges. The collaboration between government, industry stakeholders, and the workforce will be vital in overcoming these obstacles and unlocking the full potential of Indonesia's geothermal resources.

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Hydro-powering regional development in India and Nepal - East Asia Forum

Hydro-powering regional development in India and Nepal - East Asia Forum

Published December 15, 2025

Hydropower's Role in Regional Development in India and Nepal

Hydropower has emerged as a vital component in the energy landscape of South Asia, particularly in India and Nepal. Both countries possess significant hydropower potential, which can be harnessed to drive economic growth, improve energy access, and foster regional cooperation. As these nations strive to meet their energy needs and promote sustainable development, hydropower stands out as a key resource that can facilitate progress across various sectors.

Hydropower Potential in India and Nepal

India is endowed with a substantial hydropower potential estimated at 148,700 megawatts (MW), of which approximately 45% has been harnessed. The Himalayan region, particularly states like Himachal Pradesh, Uttarakhand, and Jammu & Kashmir, is rich in hydropower resources. In contrast, Nepal has an even higher hydropower potential relative to its size, estimated at around 83,000 MW, with only about 1,100 MW currently developed. This underutilization presents a significant opportunity for growth in both countries.

Economic Benefits of Hydropower Development

The development of hydropower projects can yield substantial economic benefits. In India, the hydropower sector contributes to job creation, infrastructure development, and increased energy security. For instance, the construction and operation of hydropower plants lead to direct employment opportunities and stimulate local economies through the demand for goods and services. Moreover, the availability of reliable electricity can enhance productivity in various industries, from manufacturing to agriculture.

In Nepal, the economic implications of hydropower development are equally promising. The country’s reliance on hydropower can reduce its dependence on imported fossil fuels, thereby improving its trade balance. Additionally, the revenue generated from hydropower exports to neighboring countries, particularly India, can provide a significant boost to Nepal’s economy. The potential for exporting electricity is particularly relevant given India's growing energy demands.

Energy Security and Access

Hydropower plays a crucial role in enhancing energy security for both India and Nepal. In India, the increasing demand for electricity necessitates a diversified energy mix, and hydropower can complement other renewable sources such as solar and wind. By investing in hydropower infrastructure, India can ensure a more stable and reliable energy supply, reducing the risk of power shortages.

For Nepal, improving energy access is a pressing challenge. A significant portion of the population still lacks reliable electricity, particularly in rural areas. Developing hydropower projects can help address this issue by providing affordable and sustainable electricity to underserved communities. Furthermore, decentralized hydropower systems can empower local populations, enabling them to generate their own electricity and improve their quality of life.

Regional Cooperation and Cross-Border Initiatives

The collaboration between India and Nepal in the hydropower sector has the potential to foster regional cooperation and integration. Several joint projects have been initiated, aiming to develop hydropower resources that benefit both nations. One notable example is the Upper Karnali Hydropower Project, which, upon completion, is expected to generate 900 MW of electricity. This project not only promises to enhance Nepal's energy capacity but also aims to facilitate electricity exports to India.

Additionally, the Mahakali River Treaty, signed in 1996, exemplifies the commitment to cooperation in hydropower development. This agreement allows for the construction of the Pancheshwar Multipurpose Project, which is projected to generate around 6,480 MW of electricity. Such collaborative efforts can pave the way for more comprehensive agreements, enhancing energy trade and ensuring mutual benefits.

Environmental Considerations

While hydropower presents numerous advantages, it is essential to consider the environmental impacts associated with its development. Large-scale hydropower projects can disrupt local ecosystems, displace communities, and alter river dynamics. Therefore, it is crucial for both India and Nepal to adopt sustainable practices in hydropower development.

Implementing environmental impact assessments (EIAs) and engaging with local communities can help mitigate adverse effects. Moreover, investing in small-scale and run-of-the-river hydropower projects can minimize environmental disruptions while still harnessing the benefits of hydropower. These approaches can ensure that hydropower development aligns with broader sustainability goals.

Technological Advancements and Innovations

Technological advancements are playing a significant role in enhancing the efficiency and sustainability of hydropower projects. Innovations in turbine design, dam construction, and energy storage solutions can lead to improved performance and reduced environmental impact. For instance, the development of more efficient turbines can increase energy generation while minimizing water use.

Additionally, integrating smart grid technology can enhance the management of electricity generated from hydropower. By enabling better forecasting, load balancing, and demand response, smart grids can optimize the use of hydropower resources and improve overall grid stability. Both India and Nepal can benefit from adopting these technological innovations to maximize their hydropower potential.

Conclusion

Hydropower represents a significant opportunity for India and Nepal to drive regional development, enhance energy security, and promote sustainable practices. By harnessing their vast hydropower potential, both countries can create economic opportunities, improve energy access, and foster cooperation. However, it is crucial to address environmental concerns and invest in technological innovations to ensure that hydropower development aligns with sustainability goals. As India and Nepal continue to explore their hydropower resources, the benefits of this renewable energy source can play a transformative role in shaping the future of the region.

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As Trump’s tariffs loom, Southeast Asia’s solar industry faces devastation - Al Jazeera

As Trump’s tariffs loom, Southeast Asia’s solar industry faces devastation - Al Jazeera

Published December 15, 2025

Impending Tariffs Threaten Southeast Asia's Solar Industry

As the United States prepares to implement tariffs on solar imports, the solar industry in Southeast Asia is bracing for significant challenges. The tariffs, which are part of a broader trade policy by the Trump administration, could have devastating effects on solar manufacturing and deployment across the region. With many countries relying heavily on solar energy to meet their renewable energy goals, the potential impact of these tariffs warrants close examination.

The Context of Tariffs

The tariffs are expected to target solar panels and related equipment, which are essential for the growth of solar energy in Southeast Asia. This region has emerged as a critical player in the global solar supply chain, with countries like Vietnam, Thailand, and Malaysia becoming significant manufacturers of solar panels and components. The imposition of tariffs could disrupt this supply chain and lead to increased costs for solar projects, ultimately hindering the transition to renewable energy.

Impact on Manufacturing

Manufacturers in Southeast Asia are particularly concerned about the tariffs as they could lead to a reduction in orders from U.S. companies. Many manufacturers have invested heavily in production capacity to meet the growing demand for solar panels, and a sudden drop in orders could result in significant financial losses. According to industry analysts, the tariffs could lead to a decline in production levels, job losses, and a slowdown in technological advancements.

Market Reactions

The impending tariffs have already begun to affect market sentiment. Solar companies in Southeast Asia are reporting a decrease in orders from U.S. clients, as uncertainty surrounding the tariffs prompts buyers to delay purchases. Some companies are exploring alternative markets outside the U.S. to mitigate the impact, while others are considering scaling back production in response to the anticipated drop in demand.

Challenges for Solar Deployment

In addition to manufacturing concerns, the tariffs pose challenges for solar deployment in Southeast Asia. Many countries in the region have set ambitious renewable energy targets, and solar power is a key component of these plans. However, increased costs due to tariffs could make solar projects less economically viable, leading to delays or cancellations of planned installations. This could ultimately hinder progress toward achieving renewable energy goals.

Government Responses

Governments in Southeast Asia are closely monitoring the situation and considering potential responses to mitigate the impact of the tariffs. Some countries may explore trade negotiations with the U.S. to seek exemptions or reductions in tariff rates. Others may look to strengthen domestic manufacturing capabilities to reduce reliance on imported solar equipment. Additionally, there may be increased support for local solar projects to stimulate growth in the sector despite the challenges posed by tariffs.

Long-Term Implications

The long-term implications of the tariffs on Southeast Asia's solar industry remain uncertain. While some analysts predict a temporary setback, others warn that prolonged tariffs could lead to a structural shift in the solar supply chain. If manufacturers are unable to adapt to the new trade environment, there is a risk that Southeast Asia could lose its competitive edge in the global solar market.

Conclusion

As the U.S. prepares to implement tariffs on solar imports, the solar industry in Southeast Asia faces a precarious future. The potential for increased costs and reduced demand could have far-reaching consequences for manufacturing, deployment, and the region's renewable energy goals. As stakeholders navigate this challenging landscape, the focus will be on finding solutions to sustain growth in the solar sector and ensure that Southeast Asia remains a key player in the global transition to renewable energy.

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