New geothermal legislation to spur international interest in Indonesia
Japanese players such as trading giants Sumitomo, Itochu and Marubeni are pursuing large geothermal projects (between 200 and 300 MW) and partnerships in Indonesia.
More news are developing subsequent to the new legislation concerning geothermal in Indonesia, as reported by ThinkGeoEnergy at the beginning of September.
Indonesia has a massive potential for geothermal, actually being estimated to be the second largest geothermal potential in the world. By taking geothermal out of the “mining” activities now allows firms to search for resources in forest areas, that are also coincidentally where most of the potential is located. The law also simplifies concessions and sets a floor price by the government when buying electricity, which is expected to rise.
There is great potential for large scale projects in Indonesia and according to Asia Nikkei, ” Japanese players such as trading giants Sumitomo, Itochu and Marubeni are separately pursuing projects to build and operate relatively large-scale geothermal power plants with capacities of 200 megawatts to 300 megawatts. Mitsubishi has taken a different path from its rivals and invested in Star Energy, a local geothermal power generator.”
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Source: Asia Nikkei Website