Geothermal Energy Development Continues to be Encouraged

The Indonesian Geothermal Association assesses that the government's target in developing geothermal projects is ambitious. It requires commitment and cooperation from various parties to fulfill it.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Pengembangan Energi Panas Bumi Terus Didorong

KOMPAS/HENDRA A SETYAWAN

Geothermal Power Plant

JAKARTA, KOMPAS — The government and business actors admit that there are still many challenges in developing energy geothermal or geothermal. Development is progressing slowly, even though the potential and ambition for Indonesia's geothermal utilization is large.

According to Vice President Ma'ruf Amin, the development of new renewable energy (EBT) in Indonesia has increased steadily over the past five years. This potential needs to be optimized by accelerating the energy transition. It is hoped that the capacity of EBT power plants will reach 700 gigawatts (GW) from various sources, including solar, hydro, wind, ocean currents, and geothermal.

"Regarding geothermal energy, the government is committed to promoting its development through a more promising business scheme and the development of affordable technological innovations. With this support, it is hoped that by 2060, Indonesia's geothermal power plant capacity will reach 22 GW," said the Vice President during the opening of the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2023 at the Jakarta Convention Center on Wednesday (20/9/2023)."

Also Read: Accelerating the “Net Zero Emission” Target with Geothermal Energy

In this event, several government representatives were also present. Some of them were Director General of New and Renewable Energy and Energy Conservation (EBTKE) Yudo Dwinanda Priaadi, Head of Fiscal Policy Agency at the Ministry of Finance Febrio Nathan Kacaribu, as well as Chairman of the Indonesian Geothermal Association (API) Prijandaru Effendi.

Although the development of geothermal power plants continues to be promoted, business actors still complain of several issues encountered. As a result, the development of this energy project is still progressing slowly.

BPMI SEKRETARIAT WAPRES

Vice President Maruf Amin inaugurated The 9th Indonesia International Geothermal Convention and Exhibition (IIGCE) 2023 in Jakarta on Wednesday (20/9/2023). The Vice President hopes that Indonesia's geothermal potential can be optimized.

Prijandaru stated that there is a price gap with economic value. Frequent changes in regulations result in uncertainty for geothermal growth.

So far, the average installed growth per year is only about 60 MW. This growth is far from the resources available, which reaches 24,000 MW, with reserves of 18,000 MW.

Through the 2021-2030 Electricity Supply Business Plan (RUPTL), PT PLN (Persero) together with the government are targeting geothermal achievement of 5,500 MW by 2030. This amount is equivalent to 51.6 percent of the contribution from green energy. An additional 3,300 MW is needed over the next seven years, or about 450 MW per year.

"This target is quite ambitious and requires commitment from all relevant parties. Hard work, relationships, and the presence and intervention of the government are needed so that current obstacles and challenges can be resolved quickly," said Prijandaru, who is also the Executive Vice President of Relations & Support Services at PT Supreme Energy.

Also Read: Pertamina Geothermal Energy Expands to Africa

Yudo shared a similar sentiment. So far, the challenge in developing geothermal energy lies in the fact that some of the areas are located in conservation areas. Additionally, difficult terrain poses exploration risks, followed by funding issues prior to the feasibility study phase.

Social issues also occur around geothermal power plant projects. Furthermore, low demand for electricity adds to the obstacles of developing this energy source.

KOMPAS/IWAN SETIYAWAN

Technicians inspect the hot steam channel from the separator in the 500 KW Binary Organic Rankine Cycle (ORC) Power Plant, managed by PT Pertamina Geothermal Energy (PGE) in Lahendong, Tomohon, North Sulawesi, on Monday (25/4/2022).

Encourages geothermal acceleration

Several improvements and solutions are being pursued to accelerate the utilization of geothermal energy. The hope is that exporting electricity from this energy is possible, but still prioritizes domestic demand.

Vice President Amin has ordered the improvement of data quality and incentives for geothermal exploration activities. This is to maintain a more competitive selling price for geothermal electricity. In addition, the government needs to provide funding incentives for geothermal exploration through infrastructure financing and risk mitigation programs.

In addition, geothermal power plants are expected to contribute to spurring local economic growth in infrastructure development and increasing local community income.

"The regional government and developers are working together to maximize the potential of direct geothermal equalization, both in the management of the agricultural sector, educational recreational facilities, and tourism in the managed areas," said the Vice President.

Also Read: Harvesting Good Energy from Geothermal Energy

Some of the geothermal sources are located in forest areas. Therefore, their management must also consider the ecosystem's carrying capacity to avoid damaging the forest and endangering wildlife.

KOMPAS/IWAN SETIYAWAN

Technicians inspect the hot steam channel from the separator in the 500 KW Binary Organic Rankine Cycle (ORC) Power Plant, managed by PT Pertamina Geothermal Energy (PGE) in Lahendong, Tomohon, North Sulawesi, on Monday (25/4/2022).

Meanwhile, Yudo is still considering the export of electricity from geothermal energy. He emphasized that the decision must be seen in light of the fulfillment of domestic demand which should be prioritized.

"It is very specific that we must look at all kinds of networks. The important thing is to fulfill national interests before exporting," he said.