Benefits of geothermal to Indonesia beyond green electricity
Ulubelu geothermal area, Lampung, Indonesia (source: Pertamina Geothermal Energy)
Alexander Richter
11 Aug 2021
Geothermal contributes greatly to Indonesia and this beyond electricity generation, saving carbon emissions, foreign exchange savings, local economic impact and so much more.
Geothermal also has many other hidden benefits in Indonesia and naturally beyond, as described in this article from Indonesia. In addition to generating electricity, geothermal can also reduce emissions and optimize domestic natural energy resources. “Geothermal also contributes to regional development,” said Pertamina Geothermal Energy’s Government & Public Relations Manager, Sentot Yulianugroho.
Sentot explained that the existence of a geothermal power plant (PLTP) has a role in reducing exhaust emissions of carbon dioxide (CO2). Based on the calculation of the Carbon Neutral Calculator, the reduction of greenhouse gases has even reached 14.91 million tons of CO2 per year. The amount was obtained based on the capacity of geothermal power plants in Indonesia of 2,130.6 Megawatts. “PGE, which has been operating geothermal power plants for almost five decades, has helped reduce millions of tons of CO2 gas,” said Sentot.
Currently, with a capacity of 672 MW, PGE as part of Sub Holding Pertamina PNRE has participated in reducing 3.6 million tons of CO2 per year. According to Sentot, participation in CO2 reduction is like saving the global environment.
The world is indeed committed to reducing greenhouse gases, especially CO2, which is very influential on changes in the composition of the atmosphere and global climate change. President Joko Widodo in the “Working Lunch on Development and Climate Change” event at the G20 Summit, Antalya, Turkey, last June 15 2018, stated that Indonesia is ready to take concrete actions in reducing greenhouse gas emissions. The emission reduction is a consequence of the signing of the Kyoto Protocol by 188 countries on December 11, 1997, of which Indonesia is a member.
To date, PGE manages at least seven projects within the Clean Development Mechanism (CDM) framework, six of which are registered with the United Nations Framework Convention on Climate Change (UNFCC).
Regarding the optimization of domestic resources, said Sentot, the existence of PGE from a macroeconomic perspective has contributed to saving foreign exchange. Since 1997, Indonesia has had to import oil because domestic production is unable to meet the ever-increasing consumption. “The operation of PLTP indirectly contributes to saving oil and gas foreign exchange reserves,” he said.
Sentot explained, with the national capacity of Indonesia’s PLTP of 2,130.6 MW [number recently increased to 2,146 MW with the addition of the Sorik Marapi Unit 2 geothermal plant] , it is equivalent to 100,778 Barrel Oil Equivalent Per Day (BOEPD), which if fulfilled in one year becomes 36.78 million Barrel Oil Equivalent. If it is assumed that the price of one barrel of oil is USD 50, the foreign exchange that can be saved for a year from the existence of PLTP is USD 1.84 billion.
“With the same calculation, PGE with 672 MW contributes to foreign exchange savings of USD 580 million per year,” said Sentot.
According to Sentot, the existence of geothermal also contributes to taxes and PNBP (non-tax state income). PGE contributes 34 percent of its net operating income annually to the state. The income includes employee income tax, import duties and other levies on excise and imports, as well as regional taxes and regional levies.
For PNBP, it is obtained from all inclusive which is pegged at 34 percent, and specifically for producing regions, PGE and geothermal developers who are already in production also distribute a production bonus of one percent from steam sales or 0.5 percent of electricity sales, which are deposited directly into the regional treasury. .
The presence of PLTP, Sentot explained, also encourages local economic growth through its participation in regional development. The main contribution is infrastructure development. With locations that are always in remote areas, companies must build road infrastructure to facilitate logistics transportation. The road that used to be just dirt, even just a footpath, was widened and paved. Meanwhile, if the soil is unstable, concrete is carried out.
Sentot gave an example, the people of Ngarip Village in the Ulubelu geothermal field area, Tanggamus Regency, Lampung Province, really feel the road infrastructure built by PGE. In the past, if it rained heavily, people could take a day and a night by car to get to Pringsewu City, which is 55 km away. “It’s now less than two hours in any weather,” Sentot said.
As a result, the economy of Ngarip Village and the villages that are crossed by the asphalt road also develops. “Social life and people’s welfare have increased significantly,” said Sentot.
In the Lumut Balai PGE area, Muara Enim Regency, South Sumatra, two villages in the Semende Darat Laut sub-district, namely Penindaan Village and Babatan Village, are also connected to asphalt roads. Previously, the two villages were deep in the forest and agricultural products were difficult to compete due to the high cost of transportation. Now, agricultural products from the two villages are more salable in the market. At PLTP Kamojang, various places there become tourist attractions that become a magnet for local tourists. Likewise in the Karaha, Lahendong, and Sibayak geothermal fields.
Sentot admitted that Indonesia is still relatively young in geothermal development compared to other countries such as America, Italy, New Zealand, Japan, Iceland. However, the development of environmentally friendly energy sources is still very wide open. PGE is also committed to increasing business innovations that are beneficial not only for the company’s performance, but also for environmental sustainability for the future. “This effort is PGE’s mission to make geothermal energy beyond energy,” said Sentot.
Source: Kerjha
