The Power Purchase Agreement (PPA) length for small hydro energy in Indonesia remained stable at 20 years from 2013 to 2019. Starting in 2020, there has been a gradual increase each year, reaching 23 years in 2023. This represents a year-on-year increase of 4.55% between 2022 and 2023. The Compound Annual Growth Rate (CAGR) over the last five years is 2.83%. Future forecasts suggest a continued upward trend, with the PPA length expected to reach 26 years by 2028, reflecting a forecasted five-year CAGR of 1.61% and an overall growth rate of 8.33%.
Future trends to watch for:
- Potential policy changes that could either expedite or hinder the extension trend of PPAs.
- Technological advancements in hydro energy efficiency and their impact on contractual terms.
- Economic and environmental factors influencing the renewable energy market in Indonesia.
