The Role of Onshore Wind Power to Advancing Environment Sustainability in Tropical Country: Study of Indonesia

Sammanfattning

This thesis analyses the role of onshore wind energy in supporting environmental sustainability in Indonesia by evaluating its electricity generation potential, CO₂ emission reductions, development barriers, and policy implications. Thailand is used as a comparative case to identify policy lessons relevant to wind energy development in tropical countries. The study adopts a mixed method approach consisting of a literature review, quantitative analysis, comparative policy assessment, and an analysis of wind energy development under two scenarios: a high-wind scenario and a low-wind scenario. The results indicate that Indonesia possesses considerable onshore wind energy potential that could contribute to electricity generation and CO₂ emission reduction. The analysis of high-wind and low-wind scenarios shows that wind power can support Indonesia's energy transition, although its contribution to the national electricity mix is expected to remain relatively modest. The study identifies grid infrastructure limitations, limited domestic industrial capacity, investment and financing challenges, regulatory and permitting barriers, and social acceptance issues as the main factors hindering wind energy development in Indonesia. The comparison with Thailand demonstrates that policy consistency, investment and financial incentives, effective licensing procedures, and transparent and competitive procurement mechanisms play an important role in accelerating wind energy development. This study concludes that onshore wind energy has the potential to support environmental sustainability and emission reduction in Indonesia. However, its contribution to the national electricity system is relatively small.