Source: U.S. Energy Information Administration
Indonesia
ranked third in the world in both geothermal electricity production and
geothermal generating capacity in 2014, behind only the United States
and the Philippines. The country is located at the convergence of
several tectonic plates in Southeast Asia, giving it significant
geothermal potential, although most of its potential reserves remain
unexplored.
Indonesia's Ministry of Energy and Mineral Resources
estimates that the country holds a potential 29 gigawatts (GW) of
geothermal capacity reserves, only 5% of which is currently being used.
Indonesia's current geothermal capacity of 1.3 GW consists of plants
clustered around Java, Bali, North Sumatra, and North Sulawesi.
Geothermal currently makes up less than 3% of Indonesia's total
electricity generation capacity, but Indonesia plans to increase
geothermal capacity by 2025 as part of a plan to increase
electrification in the country.
Despite a doubling of its total
electricity generating capacity in the past decade, Indonesia still has a
low electrification rate compared to countries with similar income
levels. In 2014, about 84% of Indonesia's population had access to
electricity compared to less than 68% in 2010, according to state
electric utility Perusahaan Listrik Negara. Indonesia's latest energy
policy aims to achieve nearly complete electrification of the country by
2020. In recent years, electricity capacity additions have not kept
pace with electricity demand growth, leading to power shortages in
grid-connected areas. Inadequate infrastructure as a result of
insufficient investment and regulatory hurdles contributes to lower
electrification rates, primarily in eastern Indonesia.
Fossil
fuels power most of the electricity generation in Indonesia (88%), while
renewables, primarily in the form of hydropower and geothermal
resources, account for the remainder. Indonesia intends to use domestic
fuel sources and diversify its fuel portfolio to include more renewable
power. Plans to increase renewable energy use to at least 23% of the
energy portfolio by 2025 depend heavily on further developing the
country's geothermal and hydropower resources.
Indonesia has
included several geothermal power plants in its fast-track program,
which is meant to accelerate the development of more than 27 GW of total
power capacity in the next several years. Indonesia has focused on
geothermal in particular, signing an agreement with New Zealand in 2012
for joint development of geothermal energy projects.
About 5 GW of
new geothermal capacity is slated to come online in Indonesia by 2022,
including the 330-megawatt Sarulla power plant, potentially the world's
largest geothermal power plant. Successful completion of these
geothermal projects could result in Indonesia becoming the world leader
in both geothermal electric capacity and generation.
One
impediment to unlocking the country's vast geothermal resources has been
the definition of geothermal development as a mining activity, which
restricted new projects in conservation areas. Indonesia passed a law in
2014 that eliminated this limitation on geothermal development while
streamlining the permitting process and alleviating land acquisition
issues. The law also attempted to raise private sector investment in
geothermal projects by making the price more closely match development
costs.
http://www.theenergycollective.com/todayinenergy/2283955/indonesia-has-significant-potential-increase-geothermal-electricity-production
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