Between 2013 and 2019, the length of Power Purchase Agreements (PPAs) for Marine Energy in Indonesia remained stable at 18 years. From 2020 onwards, there was a noticeable increase, with a significant year-on-year variation of 5.56% in 2020, reaching a PPA length of 21 years by 2023. The compound annual growth rate (CAGR) over the last five years up to 2023 was 3.13%.
Forecasted data suggests a continued increase in the length of PPAs, with a 2028 projection of 24 years based on a forecasted 5-year CAGR of 2.71%, indicating an overall growth rate of 14.29% from 2023 to 2028.
Future trends to watch for include potential regulatory changes that could either support or restrict the lengthening of PPAs, advancements in marine energy technology that could impact investment security, and shifts in international marine energy market dynamics that may influence local PPA structures.
