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Indonesian government targets geothermal expansion of 1,751 MW by 2019

Drilling rig at Sarulla project, Indonesia (source: Sarulla Operations)
Alexander Richter 13 Jan 2016

The Ministry of Energy and Mineral Resources of the Republic of Indonesia has set a target of an additional 1,751 MW in geothermal power generation capacity to be added until 2019.

The Government of Indonesia through its Ministry of Energy and Mineral Resources announces the target of adding 1.751 MW within the next five years (2015 – 2019), as reported on its website.

“Geothermal development within the next five years will be focused on the development of geothermal potency having a high enthalpy, while geothermal potency having a medium – low enthalpy will be developed within the next 10 years and also the small scale geothermal development.

The additional installed capacity accepted in 2015 were from Kamojang-Darajat for 35 MW. In 2016, the additional capacity for 274 MW will be accepted from Lumut Balai, Karaha, Sarulla, Lahendong and Ulubelu, each for 55 MW and 30 MW, 114 MW, 20 MW and 55 MW. By 2017, additional capacity will be accepted from Ulubelu for 55 MW, Sarulla 118, 5 MW, Lahendong 20 MW, and Liki Pinawangan Muaralaboh 70 MW. The total additional capacity by 2017 reach for 263, 5 MW.

By 2018, there will be additional capacity for 633,5 MW, each from Sarulla 118,5 MW, Lumut Balai 55 MW, Hululais 55 MW, Tulehu 20 MW, Rantau Dedap 220 MW, Gn. Rajabasa 110 MW and Dieng 55 MW. Meanwhile, by 2019 the additional capacity will be for 545 MW from Gn. Rajabasa and Dieng each for 110 MW and 55 MW Karaha 60 MW, Cisolok-Cisukarame 45 MW and Pangalengan for 110 MW.

Geothermal potential in Indonesia was predicted for 29.452 MW, but the utilization up to 2015 only reached 1.438,5 MW. The Government face several challenges to maximize the existing potencies such as the price, the overlapping of conservation areas, land acquisition, and also transmission system procurement. Five strategic steps will be conducted by the Ministry of EMR to optimize the existing potencies such as regulating and formulating governmental regulation regulating about production bonus, direct and in-direct utilization.

Besides, the Ministry of EMR will also auction 30 Geothermal Working Areas through opened bid mechanism and assignment to BUMN (State-Owned Enterprise) or BLU (Public Service Agency) based on the mandate of Law 21/2014 article 28. The Government will develop Geothermal Opened Areas through Geothermal Preliminary Survey Assignments (PSP) or Preliminary Survey Assignments plus Exploration (PSPE) and the Policy on Geothermal electricity sale prices by using Feed In Tariff (FIT) mechanism and also State Capital Participation (PMN) in geothermal projects.”

Source: ESDM, Ministry of Energy and Mineral Resources of Republic of Indonesia