The indicator “Total Estimated Potential of Renewable Power” refers to the combined theoretical capacity of all renewable energy sources that can be exploited within a specific region, measured in megawatts (MW). This figure includes the estimated maximum energy that can be generated from resources such as solar, wind, hydroelectric (both large and small), biomass, and cogeneration using bagasse (a by-product of sugarcane processing). It is not limited to currently installed or operational projects, but rather represents the upper-bound potential based on geographic, climatic, and resource availability assessments.

This indicator plays a crucial role in guiding energy policy, strategic planning, and investment decisions. Governments use it to draft renewable energy roadmaps, set capacity targets, and frame incentive schemes that encourage the development of clean energy infrastructure. Investors and energy developers rely on this data to identify high-potential areas for project deployment and to assess long-term viability and scalability. Additionally, it aids researchers and environmental planners in evaluating regional sustainability prospects and modelling future energy transitions. The indicator also supports international climate commitments by identifying how much renewable capacity could be added to replace fossil fuel dependence. Overall, it serves as a foundational metric for transitioning toward a more sustainable and resilient energy system.