By Cepi Setiadi
State-owned electricity provider PT PLN (Persero) is aiming to develop 5.1 gigawatts (GW) of geothermal power capacity under its upcoming 2025–2034 Electricity Supply Business Plan (RUPTL).
PLN President Director Darmawan Prasodjo stated that according to the plan, 89% of this capacity—approximately 4.5 GW—will be developed by private sector investors, while PLN will undertake the remaining 11%.
Darmawan explained that the geothermal development strategy will follow three key phases: resources, reserves, and production. “In the initial stage, geothermal energy exists as unproven resources, which have yet to be explored. At this point, the risk is extremely high, and accurate measurements are not yet possible,” Darmawan explained during a hearing with Commission XII of the House of Representatives on Wednesday (May 14).
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Once exploration is successfully completed, the status of the resource advances to reserves, meaning that the geothermal steam’s temperature and pressure, along with the potential electricity output, can be accurately assessed. “This reserve phase is already bankable and can attract project financing,” he noted.
However, Darmawan emphasized the high-risk nature of geothermal exploration, pointing out that drilling success rates typically range from only 30–40%. “This means that around 60% of exploration efforts could fail. It’s a significant challenge in geothermal development,” he added.
Once a project moves into the production phase, power plant construction can proceed, provided that steam flow has been confirmed and infrastructure is in place. While upfront investment is substantial, geothermal power offers considerable long-term cost advantages.
“Once operational, geothermal energy comes with very low operating costs. It’s almost like getting energy for free,” Darmawan remarked.
Editing by Reiner Simanjuntak
