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.
"At present, the installed geothermal capacity until October 2017 had reached 1,808.5 MW, and by the end of the year, the target would be achieved," he remarked.
The government continues to maximize the utilization of geothermal energy. Since Indonesia is geographically located on the Ring of Fire, it has abundant geothermal potential and can be utilized as a source of energy for generating electricity.
Currently, 331 potential sites are scattered across 30 provinces, ranging from Sumatra Island, Java, Nusa Tenggara, and Maluku to Sulawesi, with reserves of 17,506 MW and resources of 11,073 MW. However, the utilization of geothermal energy for generating electricity is currently only some 10 percent of the existing reserves, so opportunities for geothermal energy development are still wide open.
Hence, the development of PLTPs has become the key focus of the government. To this end, the government has provided a special fund to finance infrastructure development for the geothermal sector, or geothermal fund worth around Rp3.7 trillion.
Geothermal Director Yunus Saefulhak revealed that the government has allocated geothermal funds amounting to Rp3 trillion from the State Budget this year.
"The government has appointed state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI) to manage it," he noted in Jakarta on Thursday (Oct 19).
Saefulhak said apart from the geothermal funds, the projects will receive additional funding worth US$55.25 million, or approximately Rp700 billion, derived from the World Bank grants. Hence, the total will reach some Rp3.7 trillion.
Saefulhak said the exploration will be conducted in a work area that is currently not managed by a contractor, as it is viewed as being unattractive.
"Hence, many now are interested, as the risks are getting minimal," he remarked.
Based on Finance Minister's Regulation No. 62/PMK.08/2017, funding to develop infrastructure for the geothermal sector can be utilized for lending activities, equity participation, and/or providing geothermal data and information. For lending and equity participation activities, PT SMI will implement it under a corporate business scheme.
Meanwhile, for the provision of geothermal data and information, PT SMI will carry it out based on a special assignment by the finance minister.
The assignment of geothermal data and information to PT SMI is implemented as a form of the government's role to minimize the exploration risk related to the high costs during the exploration phase.
Characteristics of geothermal development carry high risks due to which the general banking industry has shown reluctance to finance the activity. The government's role in the exploration phase is expected to reduce the risks for contractors, so as to attract higher participation from developers and banks in financing and geothermal development for PLTPs.
Saefulhak is optimistic that this support would encourage the development of the geothermal sector, as one of the government's priority programs, in order to supply environment-friendly electricity and achieve the new renewable energy mix target of 23 percent by 2025.
On a separate occasion, Chairman of the Indonesian Renewable Energy Society Suryadharma expressed strong support to the utilization of geothermal energy, as a primary energy source in Indonesia, due to the fact that geothermal is a clean energy source having low emissions, so it will not harm the environment.
Hence, Suryadharma has urged the government to continue to promote geothermal benefits to a wider community.
Suryadharma said a sound understanding among members of society will prevent the rejection of geothermal development.
"If the people understand it, they will lend their support, but if it is left unheeded, it will be counterproductive," he cautioned.
"It must be understood that the geothermal effect on the environment is very small. It is an environmentally friendly technology," he noted.
To this end, Suryadharma has requested the people to not be apprehensive of environmental issues due to the development of PLTPs. The development of geothermal energy is not harmful to the environment.
The efforts to increase the people's understanding of geothermal energy should be made at various levels of society through imparting education in schools, he emphasized. ***3***
(A014/INE)EDITED BY INE/B003(T.A014/A/BESSR/Bustanuddin) 25-10-2017 19:50: |
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