The advantages of renewable energy go beyond reducing carbon emissions. They also include cost efficiency, energy security, job creation, and opportunities for industrial innovation.
As energy demand continues to rise across Asia, sources such as solar, wind, hydropower, geothermal, biomass, ocean energy, and hydrogen are becoming increasingly important in supporting the transition toward cleaner energy.
Climate change and industrial growth are encouraging countries to reduce their dependence on coal, oil, and gas.
For industries, renewable energy is not only an environmental solution but also an opportunity to manage costs, strengthen operational resilience, and build sustainable businesses.
Read Also: Distributed Energy Resources: The Future of Decentralized Energy Systems
Advantages of Renewable Energy for Industries
There are several advantages of renewable energy that make it increasingly relevant to the industrial sector.
1. Sustainable Energy Sources
Solar, wind, hydropower, and geothermal energy are naturally available and can be replenished. Unlike fossil fuels, which are finite resources, these energy sources can be utilized over the long term.
2. Reducing Carbon Emissions
Renewable energy generates very low emissions or produces no direct emissions during electricity generation.
Its adoption can help industries reduce their carbon footprint and support decarbonization targets.
3. Improving Energy Security
Developing domestic energy resources can reduce dependence on fossil fuels and imported energy supplies.
For industries, diversifying energy sources can also help manage price fluctuations and the risk of supply disruptions.
4. Potentially Reducing Costs
Technological advancements have made solar and wind power generation increasingly cost-competitive.
Industries can also utilize their own power generation facilities or enter into long-term power purchase agreements to achieve more predictable energy costs.
5. Driving Innovation and Job Creation
The growth of renewable energy creates demand for skilled professionals across engineering, manufacturing, construction, and maintenance.
Its integration with energy storage, smart grids, and the Internet of Things (IoT) also opens up new opportunities for innovation.
Types of Renewable Energy and Their Potential
Each renewable energy source has different characteristics and challenges. The selection of suitable technologies can be adjusted based on geographical conditions, energy requirements, and the scale of use.
1. Solar Energy
Solar energy is generated by harnessing solar radiation to produce electricity or heat.
Photovoltaic (PV) panels convert sunlight into electricity, while solar thermal systems utilize heat from the sun.
This technology can be deployed in industrial buildings as well as large-scale power generation facilities.
However, electricity generation depends on weather conditions and the time of day, making energy storage systems potentially necessary to maintain a continuous energy supply.
2. Wind Energy
Wind energy is generated using turbines that convert the kinetic energy of wind into electricity.
Wind power plants can be developed on land or at sea (offshore).
This technology produces no direct CO₂ emissions during operation. Offshore wind also offers significant potential because wind conditions at sea tend to be more consistent.
However, its development requires substantial investment and effective grid management.
3. Hydropower
Hydropower plants harness flowing water through reservoirs, run-of-river systems, and pumped storage facilities.
This energy source can generate relatively stable electricity, with facilities capable of operating over long periods.
Nevertheless, the construction of dams and hydropower facilities needs to consider potential impacts on ecosystems, biodiversity, and water availability.
4. Geothermal Energy
Geothermal energy utilizes heat from within the Earth to generate electricity and thermal energy.
Water heated by underground rocks produces steam that can be used to drive turbines.
One of the main advantages of geothermal energy is its ability to provide a stable electricity supply around the clock.
However, development opportunities are limited to suitable geographical locations, while drilling costs can be high.
5. Bioenergy
Bioenergy comes from organic materials such as agricultural waste, wood, food waste, and animal manure.
These resources can be used to generate heat and electricity or processed into bioethanol and biodiesel.
Indonesia has significant bioenergy potential due to the availability of raw materials from its agricultural, plantation, and forestry sectors.
Biomass utilization can also transform waste into a resource with economic value.
6. Ocean Energy
Ocean energy harnesses waves, tides, ocean currents, and temperature differences in seawater.
Although the technology is still developing, it offers potential for archipelagic countries such as Indonesia.
With its extensive maritime territory, Indonesia could utilize ocean energy as one of the sources to diversify its national energy mix in the future.
7. Hydrogen Energy
Hydrogen can be used as both a fuel and an energy storage medium.
Hydrogen produced through water electrolysis using electricity from renewable sources such as solar and wind has the potential to support low-carbon energy systems.
Its ability to be stored makes hydrogen an attractive option for industrial applications and large-scale energy storage.
Renewable Energy Development in Asia
Asia is experiencing increasing energy demand driven by industrialization and urbanization.
In Southeast Asia, ASEAN countries are promoting renewable energy adoption to provide cleaner and more affordable energy.
Through the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026–2030, ASEAN aims to achieve a 30% share of renewable energy in total primary energy supply and a 45% share in installed power generation capacity by 2030.
In Central Asia, initiatives such as the Accelerated Partnership for Renewable Energy in Central Asia (APRECA) are also promoting infrastructure modernization, investment, and cross-border renewable energy trade.
Renewable Energy Potential in Indonesia
Indonesia has significant renewable energy potential from solar, hydropower, wind, bioenergy, geothermal, and ocean energy.
With these resources, the Indonesian government has set a target of achieving net-zero emissions by 2060.
Indonesia's renewable energy potential presents an opportunity to meet growing electricity demand while reducing dependence on fossil fuels.
For industries, renewable energy development can become part of broader strategies to improve efficiency, strengthen energy security, and support business sustainability.
Read Also: Smart Grid in Indonesia: Definition, How It Works, and Its Benefits
Renewable Energy Solutions for Industries Through TBS
TBS is expanding its renewable energy portfolio through the development of environmentally friendly power generation projects.
In 2020, through PT Toba Bara Energi (TBAE), TBS acquired PT Adimitra Energi Hidro (AEH), the developer of a 2 × 3 MW mini-hydropower plant in Lampung.
In addition, TBS acquired PT Bayu Alam Sejahtera (BAS), which was exploring wind energy potential in East Nusa Tenggara (NTT).
The AEH project reached its Commercial Operation Date (COD) on January 22, 2025, contributing 6 MW of clean energy to the Southern Sumatra region.
The project also delivers benefits through infrastructure development, improved electricity access, and environmental conservation.
Furthermore, TBS is developing the 46 MWp Tembesi Floating Solar Power Plant in Batam.
The project reached financial close in 2024 and is targeted to begin full commercial operations and connect to the national electricity grid in 2026.
The project is currently under construction.
In addition to generating clean energy, the Tembesi Floating Solar Power Plant is expected to support emissions reduction, improved air quality, green job creation, technological development, and collaboration with local communities.
Through the 6 MW Sumberjaya Mini-Hydropower Plant, which has reached its Commercial Operation Date, and the 46 MWp Tembesi Floating Solar Power Plant, which is under construction, TBS continues to expand its contribution to renewable energy development in Indonesia.
These initiatives form part of TBS's efforts to provide cleaner energy solutions for industries while delivering sustainable benefits for communities and the environment.
