GeoPower Indonesia & Philippines, interview with J. Bartak of IP-GDF Suez
Lake Maninjau crater lake, West Sumatra, Indonesia (source: flickr/ Indrani Soemardjan, creative commons)
Alexander Richter
14 May 2012
International Power - GDF Suez is a geothermal developer in Indonesia and a recent interview with the upcoming GeoPower Indonesia & Philippines event provides some insight. The event takes place June 6-7, 2012 in Jakarta, Indonesia.
A recent interview by the organizers of the upcoming GeoPower Indonesia & Philippines event in Jakarta, Indonesia, June 6-7, 2012, caught my attention.
In the interview Jan Bartak, Senior Head of Business Development of International Power – GDF Suez provides an insight into his company’s role and objectives in the geothermal sector. International Power – GDF Suez signed a PPA for two geothermal projects on Sumatra Island in Indonesia earlier this year (see article).
“International Power – GDF Suez is a leading global independent electricity generating company with 75,579 MW in operation and a significant programme of 12,820MW projects under construction. In Indonesia geothermal generation can make a sizeable contribution to the energy mix and limit excessive reliance on polluting fossil fuels. International Power has the ambition, experience and skills to contribute to this development, work with reliable partners to become a leading geothermal operator in Indonesia.
Which policy changes do you think could accelerate the growth of the industry?
The applicable electricity tariffs are still too low to cover the high costs and risks of geothermal development. The regulatory framework, despite considerable improvement over the last few years, remains complex and the development process is slow. Many regulations are inherited from the oil&gas and/or mining industries without fully considering the specific nature of geothermal development in terms of exploration risks, environmental impacts, power generation business model based on long-term PPAs etc.
What do you predict the region’s geothermal industry will look like in 5-10 years time?
The industry will probably develop at a slower pace than indicated by most current predictions. Geothermal development is complex, bears considerable risks and requires significant upfront capital investments. With continuous improvement of the regulatory framework, the pace of development of new projects should accelerate in the next 5 years compared to the last 5 years.
Where else does your company operate and how have your experiences compared?
International Power operates globally and has extensive experience in many emerging markets in Asia, Latin America, Middle East and Africa. While the problems facing IPP development are similar in many of these markets, there are numerous examples showing that clear and transparent government policies and regulations can be determining in accelerating IPP development and guarantee sustainable growth of generating capacities, indispensable for social and economic development.”
Event details: website
Source: Green Power Conferences
