INDONESIA POISED TO BECOME WORLD'S LARGEST GEOTHERMAL POWER PRODUCER

by Andi Abdussalam

Jakarta, Oct 25 (Antara) - The Ministry of Energy and Mineral Resources (ESDM) has estimated that Indonesia will become the world's largest geothermal power producer by 2021.          In the next four years, the capacity of Indonesia's geothermal power plants (PLTPs) will surpass that of the world's largest geothermal power producer, the US.          Geothermal Director of the Directorate General of Renewable Energy and Energy Conservation of the ESDM Ministry Yunus Saefulhak said in 2021, the installed capacity of Indonesia's PLTPs is forecast to reach over 3,550 megawatts (MW).          "In 2021, we are optimistic of becoming number one," he noted in Jakarta, Tuesday (Oct 17).          Indonesia is currently ranked third, in terms of utilization of geothermal energy, behind the Philippines. Currently, the US' PLTP capacity is estimated to remain stagnant at 3,450 MW. Meanwhile, the Philippines' PLTP capacity is forecast to decrease from the current installed capacity of some 1,870 MW.          For 2017, Indonesia's installed capacity target is set at 1,858.5 MW, and the geothermal road map has also been prepared. Saefulhak is optimistic that the target would be met.

MINISTRY TO BOOST GEOTHERMAL DEVELOPMENT

by Andi Abdussalam

Jakarta, Aug 4 (Antara) - The Indonesian government will continue to explore sources of energy to achieve its targets for the new and renewable energy program, reduction of gas emissions and energy mix use.          One of the potential energy sources that can be developed to achieve the gas emissions and energy mix targets is geothermal, whose utilization continues to be encouraged by the Energy and Mineral Resources Ministry (ESDM).          The development of geothermal is part of the government's efforts to build new and renewable energy from geothermal power plants. This reflects the commitment made by the government during the COP 21 in Paris, December 2015.          "We will make efforts to reach the energy mix target of 23 percent in 2025 from new and renewable energy sources. This is not easy because until now, we have only achieved about 8-9 percent. Probably in 2019, we can achieve 12-13 percent. However, to achieve this target, we need to make extraordinary struggles," Energy and Mineral Resources Minister Ignasius Jonan stated in Jakarta, Wednesday.          Geothermal can be expected to contribute greatly toward Indonesia's electricity development. "Currently, geothermal electricity generating plants (PLTP) which have been in the commercial operation date (COD) or on stream, account for approximately 1,700 megawatts (MW). This is still small compared to the fact that Indonesia has large energy potentials, which reach 29,000MW. We will do our best to speed it up," Jonan said.

GOVT RAISES GEOTHERMAL POWER PRICES

By Andi Abdussalam

Jakarta, July 19 (ANTARA) - The government has raised the sales price of electricity produced by geothermal power plants from the previous maximum 9.7 cent dollar per kWh to a range of 10 cent dollar - 17  cent dollar per kWh, in a move congruent with power energy distributors' demands.          Director General for New, Renewable and Conservation Energies Affairs of the Ministry of Energy and Mineral Resources (ESDM) Kardaya Warnika said that the government hoped the increase in the price of geothermal power would increase the use of electricity produced by geothermal power plants and would boost investment in this sector, here on Tuesday.         The director general said that the new price increases were regulated through a ministerial decree which revised the ESDM ministerial decree No. 2 / 2011 on the assignment of state-owned power utility firm PLN to purchase electricity produced by geothermal power plants and on the reference prices of geothermal power the PLN has to pay.          Based on the revised ministerial decree, PLN has the obligation to purchase geothermal power at a maximum price of 9.7 US dollar cents per kWh.          Last month, Pertamina  Geothermal Energy (PGE), a subsidiary of state-owned oil and gas company Pertamina, hoped that the government would soon set a reasonable price on the price of geothermal power.          He said the sales price of geothermal power was still low at Kamojang IV geothermal power plant (PLTP) with its price still at three US dollar cents per kWh. The government could help develop geothermal power production by setting a reasonable price," told President Director of PT PGE Slamet Riadhy.          He said the geothermal power plant industry is a highly risky business and needs a large investment.  PGE hoped that the sales price of electricity from geothermal energy produced at Ulubelu 3 and 4 would be higher than Ulubelu 1 and  2 which will soon start operating as per government guidelines.          Slamet said PT PGE is managing 292 megawatts of geothermal power energy, of which 20 MW is produced by PLTP Lahendong. However, he added PGE has set a target of producing 110 megawatts from the geothermal area in PLTP Ulubelu 1 dan 2 this year.          Director General Kardaya said the newly set prices of geothermal power were set at a variable rate ranging from 10 US dollar cents to 17 US dollar cents per kWh, depending on the locations of the plants and on other specific considerations.          He cited Java as an example where the price of per kWh of geothermal power was set at 11-11.5 cent dollar per kWh in Sumatra at 10 cent dollar, in East Nusa Tenggara at 15 cent dollar and Papua at 17 cent dollar.          The prices were also set based on the availability of geothermal energy sources and their environment supporting capacity in places such as at tourist resorts and places where pollution of the regions was high.          He said that the new prices were not effective for old contracts, but were effective for new contracts or for contracts which were to be extended.  "Yet, old contracts can also implement the price increases based on a business-to-business (B-to-B) deal," he asserted.          The director general said that the price of geothermal energy was also raised as part of the government's efforts to boost investment in the geothermal energy sector.          "The government has set itself a target to increase geothermal production to 4.000-5.000 MW in 2014-2015," revealed Kardaya Warnika.          The Indonesian government is developing a 20,000 MW power project in two phases. Out of the country's second phase of the 10,000 MW development project, 4,000 MW would come from geothermal sources.       For this purpose, besides encouraging local investors, the government is also making efforts to offer the opportunity to foreign investors. Indonesia and New Zealand have agreed on cooperation in geothermal energy research. Indonesia has the largest geothermal reserves in the world, but the country has not been able to make use of its natural wealth yet.          According to Education Minister Muhammad Nuh, New Zealand has high technology and research expertise in geothermal energy. Nuh said that the education ministry has established a rapport with a number of major universities in the country like Bandung Institute of Technology, and Surabaya Institute of Technology to develop geothermal research.          In the meantime, Japan is also looking to increase its cooperation with Indonesia in the field of geothermal energy development as part of its efforts to find energy sources to meet its needs.         "Japan has expressed its commitment to cooperate in the field of geothermal energy development," told Vice-Presidential spokesman Yopie Hidayat while speaking to newsmen recently.          He released a statement after Vice-President Boediono received Hiroshi Okuda, the governor of Japan Bank for International Cooperation (JBIC) and Japanese ambassador Yoshinori Katori.          While noting the similarities in natural conditions of the two countries, it was cited that they could cooperate to develop geothermal and hydro-energy sources.  "Japan has used geothermal and hydro-energy sources to generate electricity. Japan wishes to be involved in the development of the energy resources in Indonesia," he said.          He said Vice-President Boediono welcomed the JBIC's request, saying the Indonesian government is prioritizing the development of environmental-friendly power plant.          Out of the country's second phase of the 10,000 MW development project, 4,000 MW would come from geothermal sources. "It would be very good if JBIC would participate and support it," he said, quoting the Vice-President.***2*** (T.A014/INE/A/E002) 19-07-2012 14:2

RI TO GENERATE 9,500 MW POWER WITH GEOTHERMAL ENERGY

By Andi Abdussalam

Jakarta, April 27 (ANTARA) - In order to reduce the use of oils for its power generators, Indonesia, host to 40 percent of the world's geothermal reserves, aims to use this clean energy to generate electricity up to 9,500 megawatts and to cut emissions by 16 percent in 2025.          With its geothermal reserves able to generate electricity up to 28,100 MW, Indonesia now still uses only about 4.2 percent of the reserves to fuel its 1,198 MW power plants. This encourages the government to increase further the use of the country's geothermal reserves to produce electricity up to 3,977 MW in 2014.          The country's ambition to maximize the use of its geothermal reserves as fuels for its power generators was expressed by President Susilo Bambang Yudhoyono when he opened the 4th World Geothermal Congress (WGC) at the  Nusa Dua resort of Indonesia's tourist resort province of Bali on Monday.          "Indonesia now only uses 4.2 percent of its geothermal reserves to generate 1,100 MW of electricity. Indonesia's geothermal reserves account for 40 percent of the global geothermal potentials," President Yudhoyono said.          Therefore, the president said, Indonesia aims to become the world's largest geothermal energy user. Indonesia now ranked third in terms of geothermal energy consumption after the United States and the Philippines which used geothermal energy to generate 4,000 MW and 2,000 MW of electricity respectively.           To accelerate the development of geothermal power plants the government could not work alone but would cooperate with international financial institutions and donor countries, he said. After all, Indonesia has enough potential.          According to the Ministry of Energy and Mineral Resources, Indonesia's geothermal potentials have increased and been able to generate 28,100 MW. These reserves are found in 265 different locations.          The ministry's geological agency reveals that the potentials are based on an operation period of 30 years, or equal to the consumption of 12 billion barrels of natural oil.          "Compare this to the present natural oil reserves of only 6.4 billion barrels,"  Suchyar of the agency, said. He said ten years ago, the geothermal potential reached only a capacity to generate 27.000 MW.          In 2009, eight new geothermal locations had been found, namely Kebar in Manokwari, West Papua with a potential of 25 MW, Tehoru 75 MW, Banda Baru 75 MW, Pohon Batu 50 MW, and Kelapa Dua 25 MW in Maluku, Lili 75 MW, Mapili 50 MW, and Alu 25 MW in Mandar, West Sulawesi.          At present, only about 4 percent of the country's geothermal reserves  --which are able to generate 28,000 MW--  are being used are now generating only 1,198 MW.          Under the National Energy Policy, in 2025 the use of geothermal energy may reach 9,500 MW.          Suchyar added that the government until 2014 planned to build geothermal power plants with a total capacity of 3,977 MW under the second 10,000 MW power crash program.          "If combined with the existing power plants to 5,000 MW, it would be equal to the use of 2.4 billion barrels of natural oil," he said.          In line with its roadmap for the development of the energy sector in the 2004-2025 period, the government has made a number of policies on the development of geothermal energy.          "We have set ourselves the target of fulfilling 5 percent of the national energy needs in 2025 from geothermal energy," President Yudhoyono said.          To achieve the target, the government had launched a number of projects including four projects between state electricity company PT Perusahaan Listrik Negara (PLN) and PT Pertamina Geothermal Energy for the development of geothermal power plants in Central Java, North Sumatra and West Lampung using World Bank loans.          The projects which would cost US$8.6 billion were expected to   generate 2,885 MW of electricity to overcome the current power shortages which reached 4,900 MW.          The projects were also expected to reduce carbon dioxide emissions of up to 17.3 million tons per year, he said.          Indonesia has faced energy crisis, especially electricity as the nation relied heavily on fuel. The state power plant PLN has to spent around Rp30 trillion annually to by fuel.          To address that problem, the energy and minister resource ministry would optimize the usage of mixed energy up to 2025, namely by conversion and diversification of energy sources.          "We will optimize energy which has not been used so far, such as geothermal and nuclear energy, as well as coal up to ten folds, so that we could cut the emission by 16 percent," Marwansyah Lobo Balia, expert staff of the energy and mineral resources ministry,  said.          According to President Yudhoyono, the development of geothermal energy in Indonesia would have a small impact on the environment because the country has adequate technology and human resources for the purpose.          The government has set itself a target of attracting  around US$12 billion in new investment for the geothermal sector and a geothermal energy production capacity of 3,977 megawatt (MW) as part of its second phase 10,000 MW power project.          "I hope that the efforts to make efficient use of geothermal energy potentials will be successful, not only for Indonesia but  for the rest of the world as well," he said.     (T.A014/a/H-NG/f001  )  27-04-2010 12: