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Additional 5,880 MW of geothermal capacity planned for Indonesia

Ida Nuryatin Finahari, Director of Geothermal at EBTKE/ ESDM on visit to Sorik Marapi (source: EBTKE)
Alexander Richter 19 Jun 2020

With an estimated 177 geothermal projects planned in Indonesia, the government sees investment needs of around $30 billion to add the planned 5,800 MW in power generation capacity by 2030.

The Indonesian government projects geothermal investment needs of up to US $ 29.39 billion to boost the installed capacity of geothermal power plants (PLTP) to reach 8,008 MW by 2030, so Investor Daily in an article this week. In fact, geothermal installed capacity currently only 2,130.7 MW.

Director of Geothermal at the Ministry of Energy and Mineral Resources (ESDM) Ida Nurhayatin Finahari said that her office had prepared a roadmap for geothermal development. Referring to this roadmap, the capacity of the new national geothermal power plant will reach 8,007.7 MW in 2030, retreating from the RUEN target of 7,241.5 MW in 2025. This means that there are 177 projects planned by 2030 with a total capacity of 5,877 MW. “Assuming an investment requirement of US $ 5 million per 1 MW, a total investment of US $ 29.39 billion is needed,” she told Investor Daily.

If divided based on the progress of geothermal project development, she continued, currently there are 57 projects in 28 geothermal work areas (WKP) with a total capacity of 2,232 MW underway or have an electricity purchase agreement (PPA) with PT PLN (Persero).

Furthermore, as many as 44 projects in 34 geothermal blocks with a total capacity of 1,630 MW are still in planning or have entered the General Plan for Electric Power Supply (RUPTL), but do not yet have a PPA. “Then there are 76 potential projects in 54 regions with a total capacity of 2,015 MW that have not been included in the RUPTL,” said Ida.

Furthermore, if divided according to commercial operation targets (commercial on date / COD), as many as 29 projects with a capacity of 740 MW are targeted to operate in 2020-2024.

In 2025-2028, 71 projects with a total capacity of 2,872 MW are targeted to start operating. While 77 projects with a capacity of 2,265 MW are planned to begin operations in 2029-2030.

“Based on location, as many as 116 projects or 5,085 MW exist in western Indonesia and 61 projects with a capacity of 792 MW in eastern Indonesia,” said Ida.

In order to accelerate the development of geothermal energy, Ida said, the government is currently drafting a Presidential Regulation on renewable new energy.

The new regulation is expected to provide certainty attractive geothermal electricity prices for investors and minimize renegotiations with PLN.

“In addition, we also seek incentives such as proposed exploration incentives by the government, tax allowance, import duty facilities, UN exemptions, and tax holidays. In addition, there are proposals for low-cost geothermal financing schemes, ” she explained. Indonesia has geothermal resources reaching 28,508 MWe with reserves of 17,435 MWe. This year, the installed capacity of PLTP is targeted to increase to 2,270.7 MW.

Source: Investor Daily