Pertamina aims to reach 2,300 MW in geothermal power generation capacity by 2030
At its annual meeting, Pertamina in Indonesia has announced ambitious plans on its renewable energy efforts, and has set itself a goal of 2,300 MW in geothermal power generation capacity to be reached by 2030.
In its big annual meeting, Indonesian state-owned energy firm Pertamina has announced big plans on pushing a stronger renewable energy strategy. This includes investments into green technology companies and is to help the company to decrease its dependency on oil and gas.
The company has announced wanting to reach up to 2,300 MW in geothermal power generation capacity, 600 MW from solar and a distribution of up to 17,000 barrels of biofuel per day by 2030. In the same time period, the company will also target 300 MW in wind power and 200 MW in biomass plants.
Pertamina, through its subsidiary Pertamina Geothermal Energy (PGE) currently has an installed geothermal power generation capacity of 587 MW, with intermediate goals to push the capacity to 2,137 by 2025.
The company faces a number of challenges in its development plans for geothermal, among them a Capex “of $4-5 million/ MW, lack of economical regional production cost (BPP) in the Minister of Energy and Mineral Resources Regulation No. 50/2017, high exploration risk and limited data of geoscience in the auction process of geothermal working areas, and the absence of regulations governing the direct sales of geothermal energy.”, according to President Director of PT Pertamina Geothermal Energy Irfan Zainuddin.
“Not to mention the risks of rejection from the local community, as well as conflicts during the land acquisition process. But there are also opportunities such as more multinational companies like IKEA, Google, Nestle, Nike, Unilever and Apple are committed to clean energy development,” he said in a press release today to the Jakarta Post.
To encourage the acceleration of the development of geothermal power plant, he continued, the government needs to develop a power wheeling scheme. The power wheeling is a scheme of joint utilization of transmission network or power distribution network.