The present study identifies Ocean Thermal Energy Conversion (OTEC) as an important power resource for Indonesia. OTEC is a renewable, environmentally friendly, technology which produces electricity from the temperature difference found between the surface and deep layers of most tropical oceans. It also offers great opportunities and challenges for ocean engineers and naval architects. Although capital-intensive floating OTEC plants are not likely to play a role in the near future, environmental pressures and changing socioeconomic conditions could change this situation in a matter of decades. Before a penetration of the main Indonesian electricity market becomes possible, it is essential for this technology to mature from its present experimental status. The completion of power plants of a few megawatts will be required. A strategy is proposed to identify niche markets in Indonesia, such as small remote island communities or new touristic resorts, where these necessary but costly developmental OTEC systems could be cost-effective.