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[News] Indonesia's Geothermal Industry Should Grow Better
Posted at: 23 November 2018

Based on data on renewable energy development from the Institute for Essential Services Reform (IESR), Indonesia only showed 4.5 percent of growth in its renewable energy capacity, while Thailand achieved 9.8%, Malayisa 10.7%, China 15.4%, and Myanmar 15.5%.

Indonesia is planning to become the largest producer of geothermal energy, according to Rida Mulyana, renewable energy director general at the Energy and Mineral Resources Ministry, ahead of the Philippines and the United States based on installed geothermal power generation capacity.  Indonesia's geothermal industry should grow better.

As we reported, investment into geothermal energy development in Indonesia, contributed around 60-65% of Indonesia’s renewable energy investment, yet reached only $800 million as of September 2018, around 70% of the target for 2018 of $1.2 billion.

With an additional 95 MW to come online this year, Indonesia could nearly reach the full year target of 2,058 MW. The current installed capacity is 1,948 MW.

The industry is asking for efforts to help boost investment into geothermal energy development. Furthermore the value of a project should be ensured in accordance with the risk taken by the developers. PLN should also provide certainty when purchasing electricity from geothermal plants.

According to official data, only 30 of a total of 70 PPAs in renewable energy projects signed by the government last year actually reached financial close, while the remaining projects face difficulties obtaining necessary funding.

Indonesia's geothermal industry should grow better. The ministry continues to promote an upcoming auction for five geothermal working areas (WKP) with a total potential capacity of 784 MW. The five WKPs are WKP Lainea in Southeast Sulawesi, WKP Sembalun in West Nusa Tenggara, WKP Telaga Ranu in North Maluku, WKP Kotamobagu in North Sulawesi and WKP Bora Pulu in Southeast Sulawesi.

(source: Think Geo Energy/The Jakarta Post)