The length of Power Purchase Agreements (PPAs) for Solar PV energy in Indonesia remained constant at 20 years from 2013 through 2019. However, from 2020 to 2023, there has been a steady increase, reaching 23 years in 2023. This reflects a shift in policy and market confidence, with the PPA length increasing by 4.55% from 2022 to 2023 and averaging an annual growth rate (CAGR) of 2.83% over the last five years. The forecast indicates a continued increase, reaching 26 years by 2028, with a forecasted CAGR of 1.61% over the next five years.
Future trends to watch for include regulatory changes that could further influence the length of PPAs, advancements in solar PV technology which might affect investment risk profiles, and international agreements impacting renewable energy policies. These factors can play a critical role in either accelerating or decelerating the lengthening trend of PPAs in the country.
