RI projected to become world?s largest geothermal power producer in 2021
Monday, September 11 2017 - 08:21 AM WIB
The Ministry of Energy and Mineral Resources projected Indonesia will become the world?s largest producer of geothermal power in 2021, overtaking the US as the current largest producer, with additional capacities from existing geothermal power plant (PLTP) projects.
This was said by Dadan Kusdiana, Head of Communications, Public Information and Cooperation Bureau at the ministry, in a statement on Monday.
Dadan said that next year, Indonesia will take over the position of the Philippines as the second world?s largest geothermal power producer as geothermal reserves in the latter country are increasingly limited.
This will be realized with 2,032.5 MW of additional capacities from PLTP Sarulla (2 x 110 MW), PLTP Karaha (30 MW), PLTP Sorik Marapi (2 x 20 MW), and PLTP Lumut Balai (55 MW).
According to the ministry?s roadmap, Indonesia will take over the position of the US as the world?s largest geothermal producer in 2021 through additional capacities of 3,559.5 MW. Dadan said that there has been no significant development in US geothermal power plant projects as there are no incentives given to investors.
In contrasts, he said, the Indonesian government is providing both fiscal and non-fiscal incentives for investors to capitalize on the country?s huge geothermal potential.
Dadan said that Indonesia?s geothermal power plant capacity currently stands at only 1,698.5 MW, or 10 percent of potential reserves.
He said that the government has identified 331 locations of geothermal potential in the country, providing investment opportunities for investors.
?We have geothermal reserves of 17,506 MW and resources of 11,073 MW, but has yet to be optimally utilized. This is an opportunity for investors as well as for meeting the national energy demand,? he said.
Dadan further explained that the regulatory framework has been set up to support investment in the geothermal sector including Law No 21/2014 on geothermal, Government Regulation No 7/2017 on utilization of geothermal, both of which allows geothermal development in conservation forest areas.
Recently, Minister of Energy and Mineral Resources Ignasius Jonan has issued Ministerial Regulation No 50/2017, which allows independent power producers to negotiate geothermal electricity tariff with state-owned electricity firm PT PLN if the projects are located in regions where the local electricity production cost of PLN (or BPP) is lower than the national BPP average. In areas where the BPP is higher than national average, the tariff is set at 100 percent of the local BPP. Dadan said that the new regulation would make electricity tariff from geothermal project to be attractive for investors.
Editing by Reiner Simanjuntak