Geothermal power in Indonesia
Encyclopedia
Geothermal power in Indonesia is an increasingly significant source of renewable energy
. As a result of its volcanic
geology, Indonesia
has 40% of the world's potential geothermal resources, estimated at 28,000 megawatts
(MW).
Currently Indonesia is the world's third largest geothermal electricity
producer after the United States
and the Philippines
. Installed production capacity (2011) is almost 1,200 MW from six geothermal fields in Java
, North Sumatra
and North Sulawesi
. In 2007, geothermal energy represented 1.9% of the country's total energy supply and 3.7% of its electric power.
At the 2010 World Geothermal Congress in Bali
, President Susilo Bambang Yudhoyono
announced a plan to build 44 new geothermal plants by 2014, more than tripling capacity to 4,000 MW. By 2025, Indonesia aims to produce more than 9,000 MW of geothermal power, becoming the world's leading geothermal energy producer. This would account for 5% of Indonesia's total energy needs.
. In 1926, five test borings were drilled in Java's Kawah Kamojang
field, the third being the first that was successful. In the early 1980s, it was still discharging superheated steam from a depth of 66 metres at a temperature of 140°C and a pressure of 3.5 to 4 bars
. A prefeasibility study for electricity generation was initiated in 1972 by Geothermal Energy New Zealand. The first generator was inaugurated in 1983 by President Suharto and subsequently expanded in 1987. Current capacity is 140 MW.
Since the mid-1980s, Chevron
, the world's largest geothermal power producer, has operated two geothermal fields in West Java at Salak
and Darajat with a combined capacity of around 365 MW. Between 1989 and 1997 explorations were conducted at the Sibayak
geothermal field in northern Sumatra, and subsequently a 12 MW plant has been placed in operation.
In 1991, Indonesia Geothermal Association (Asosiasi Panasbumi Indonesia - API), a non-governmental organisation, was established to promote geothermal energy. It has approximately 500 members including geothermal experts, companies, and stakeholders. The Wayang Windu Geothermal Power Station
in West Java
, owned by British Star Energy
, has been in operation since 2000. It currently comprises two units with a total capacity of 227 MW. There are plans for a third unit of 127 MW which is expected to be on-stream by mid-2013.
Geothermal Field in Bali
started in 1974 and though production capacity was estimated at 175 MW in 2008, the project is on hold after being opposed by local residents.
PT Pertamina Geothermal Energy (PGE) - a geothermal business branch of state oil and gas company PT Pertamina
- plans to develop seven new plants by late 2012 with a total capacity of 270 MW. Of these, a 110 MW plant at Lumut Balai
in South Sumatra, a 110 MW plant at Ulubelu, Lampung Province
, and a 20 MW plant at Lahendong in North Sulawesi
are to be financed through loans from the World Bank
and Japan International Cooperation Agency
.
At the 2010 World Geothermal Congress in Bali, several companies were awarded the rights to develop geothermal fields and power plants: Golden Spike Indonesia won the tender to develop a power plant at Mount Ungaran
in Central Java, Sokoria Geothermal Indonesia gained rights to develop a plant at Ende
, on Flores
island, while Supreme Energy was chosen to develop plants at Mount Rajabasa
in Lampung and Solok
in West Sumatra. These projects were estimated to require a total investment of US$1.68 billion.
As of 2010, a total of 265 potential sites for plants have been identified across the country. Development of the industry, however, involves a range of complex policy issues, some of which are proving to be a continuing source of controversy. In mid 2011, for example, the Indonesian Government issued an expected regulation providing certain guarantees for investors with the aim of encouraging increased investment in the geothermal sector. However, investor response was guarded, suggesting that key aspects had not been addressed in the regulation.
(PLN) announced that the outlook was that by 2014 only 1,200 MW of power was likely to be produced from geothermal plants. The president director of the PLN, Dahlan Iskan, said that plans to develop a number of geothermal plants were behind schedule because private sector investors were reluctant to invest as a result of the perceived risks in the sector.
In response to reports about certain of the risks that private sector investors were concerned about, in mid 2011 the government issued a regulation intended to provide guarantees that the state electricity utility PLN would meet financial obligations to independent power producers (IPPs) who invested in the geothermal sector. But the regulation was quickly criticised by representatives of private investors as being too limited and for failing to clarify important concerns.
Pricing policy
Prices have been another important policy issue in the sector. In an effort to encourage private sector investment, the Indonesian government has been establishing a feed-in tariff
scheme by instructing state electricity utility PLN to purchase power from geothermal projects at various rates ranging from around 6.5 US cents to over 12 US cents per kWh. The government is also preparing a regulation which is expected to specific the price at which the PLN must purchase power from geothermal plans in the second 10,000 MW fast-track electricity sector program which the government has announced; this regulation is expected to be finalised by early 2012..
In May 2011 the Indonesian government has imposed a two years moratorium on logging, however this excepts the energy sector, including geothermal activities.
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
. As a result of its volcanic
Volcanism of Indonesia
Indonesia is a volcanically active country, containing numerous major volcanoes. It has 130 active volcanoes that are part of the Pacific Ring of Fire and has suffered the highest numbers of eruptions producing fatalities, damage to arable land, debris flows, tsunamis, domes, and pyroclastic flows....
geology, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
has 40% of the world's potential geothermal resources, estimated at 28,000 megawatts
Watt
The watt is a derived unit of power in the International System of Units , named after the Scottish engineer James Watt . The unit, defined as one joule per second, measures the rate of energy conversion.-Definition:...
(MW).
Currently Indonesia is the world's third largest geothermal electricity
Geothermal electricity
Geothermal electricity is electricity generated from geothermal energy.Technologies in use include dry steam power plants, flash steam power plants and binary cycle power plants...
producer after the United States
Geothermal energy in the United States
Geothermal energy in the United States continues to be an area of considerable activity. In 2010, the United States led the world in geothermal electricity production with 3,086 megawatts of installed capacity from 77 power plants; the largest group of geothermal power plants in the world is...
and the Philippines
Geothermal power in the Philippines
The Geothermal Education Office and a 1980 article entitled "The Philippines geothermal success story" by Rudolph J. Birsic published in the journal Geothermal Energy note the remarkable geothermal resources of the Philippines...
. Installed production capacity (2011) is almost 1,200 MW from six geothermal fields in Java
Java
Java is an island of Indonesia. With a population of 135 million , it is the world's most populous island, and one of the most densely populated regions in the world. It is home to 60% of Indonesia's population. The Indonesian capital city, Jakarta, is in west Java...
, North Sumatra
Sumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...
and North Sulawesi
Sulawesi
Sulawesi is one of the four larger Sunda Islands of Indonesia and is situated between Borneo and the Maluku Islands. In Indonesia, only Sumatra, Borneo, and Papua are larger in territory, and only Java and Sumatra have larger Indonesian populations.- Etymology :The Portuguese were the first to...
. In 2007, geothermal energy represented 1.9% of the country's total energy supply and 3.7% of its electric power.
At the 2010 World Geothermal Congress in Bali
Bali
Bali is an Indonesian island located in the westernmost end of the Lesser Sunda Islands, lying between Java to the west and Lombok to the east...
, President Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono AC , is an Indonesian politician and retired Army general officer who has been President of Indonesia since 2004....
announced a plan to build 44 new geothermal plants by 2014, more than tripling capacity to 4,000 MW. By 2025, Indonesia aims to produce more than 9,000 MW of geothermal power, becoming the world's leading geothermal energy producer. This would account for 5% of Indonesia's total energy needs.
History
The first proposal on energy from volcanoes came in 1918 during the Dutch colonial eraDutch East Indies
The Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
. In 1926, five test borings were drilled in Java's Kawah Kamojang
Kamojang
Kamojang, popularly known as Kawah Kamojang or , is a geothermal field and tourist spot in West Java, Indonesia. The crater is located approximately 45 km to the southeast of Bandung through the town of Majalaya...
field, the third being the first that was successful. In the early 1980s, it was still discharging superheated steam from a depth of 66 metres at a temperature of 140°C and a pressure of 3.5 to 4 bars
Bar (unit)
The bar is a unit of pressure equal to 100 kilopascals, and roughly equal to the atmospheric pressure on Earth at sea level. Other units derived from the bar are the megabar , kilobar , decibar , centibar , and millibar...
. A prefeasibility study for electricity generation was initiated in 1972 by Geothermal Energy New Zealand. The first generator was inaugurated in 1983 by President Suharto and subsequently expanded in 1987. Current capacity is 140 MW.
Since the mid-1980s, Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
, the world's largest geothermal power producer, has operated two geothermal fields in West Java at Salak
Mount Salak
Mount Salak is an eroded volcanic range in West Java, Indonesia. Several satellite cones occur on the southeast flank and on the northern foot. Two craters are found at the summit. Mount Salak has been the site of a geothermal exploration.. The name Salak is come from salak fruit.- See also :*...
and Darajat with a combined capacity of around 365 MW. Between 1989 and 1997 explorations were conducted at the Sibayak
Sibayak
Mt. Sibayak is a small stratovolcano overlooking the town of Berastagi in northern Sumatra, Indonesia. Although its last eruption was more than a century ago, geothermal activity in the form of steam vents and hot springs remains high on and around the volcano. The vents produce crystalline...
geothermal field in northern Sumatra, and subsequently a 12 MW plant has been placed in operation.
In 1991, Indonesia Geothermal Association (Asosiasi Panasbumi Indonesia - API), a non-governmental organisation, was established to promote geothermal energy. It has approximately 500 members including geothermal experts, companies, and stakeholders. The Wayang Windu Geothermal Power Station
Wayang Windu Geothermal Power Station
The Wayang Windu Geothermal Power Station is the largest geothermal power station in Indonesia. The facility utilizes two units, one with 110 MW and the other with 117 MW, totalling the installed capacity to 227 MW. The power station is located near the town of Pangalengan, 40 km...
in West Java
West Java
West Java , with a population of over 43 million, is the most populous and most densely populated province of Indonesia. Located on the island of Java, it is slightly smaller in area than densely populated Taiwan, but with nearly double the population...
, owned by British Star Energy
Star Energy
Star Energy is a British onshore oil exploration company. It is the second largest onshore oil company in the UK after BP.-History:It was formed in October essentially as a management-buyout of operations in the Weald Basin, acquired from Soco International...
, has been in operation since 2000. It currently comprises two units with a total capacity of 227 MW. There are plans for a third unit of 127 MW which is expected to be on-stream by mid-2013.
Exploration and development
Exploration of the BedugulBedugul
Bedugul is a mountain lake resort area in Bali, Indonesia, located in the centre-north region of the island near Lake Bratan on the road between Denpasar and Singaraja. Bedugul is located at north of the city of Denpasar...
Geothermal Field in Bali
Bali
Bali is an Indonesian island located in the westernmost end of the Lesser Sunda Islands, lying between Java to the west and Lombok to the east...
started in 1974 and though production capacity was estimated at 175 MW in 2008, the project is on hold after being opposed by local residents.
PT Pertamina Geothermal Energy (PGE) - a geothermal business branch of state oil and gas company PT Pertamina
Pertamina
Pertamina is an Indonesian government-owned corporation which extracts and refines the country's oil and gas reserves. It was created in August 1968 by the merger of Pertamin and Permina...
- plans to develop seven new plants by late 2012 with a total capacity of 270 MW. Of these, a 110 MW plant at Lumut Balai
Bukit Lumut Balai
Bukit Lumut Balai is a heavily eroded stratovolcano on Sumatra island, Indonesia. It consist of three eruption centers, two on the Bukit Lumut and one one the northeast side of the Bukit Balai. A large lava flow occurs on the north side of Bukit Balai. Active fumarole fields are found in two...
in South Sumatra, a 110 MW plant at Ulubelu, Lampung Province
Lampung
Lampung is a province of Indonesia. It is located on the southern tip of the island of Sumatra and borders the provinces of Bengkulu and South Sumatra. Lampung is the original home of the Lampung people, who speak a distinct language from other people in Sumatra and have their own alphabet. Its...
, and a 20 MW plant at Lahendong in North Sulawesi
North Sulawesi
North Sulawesi is a province of Indonesia. It is on the island of Sulawesi, and borders the province of Gorontalo to the west . The islands of Sangihe and Talaud form the northern part of the province, which border Davao del Sur in the Philippines.The capital and largest city in North Sulawesi is...
are to be financed through loans from the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
and Japan International Cooperation Agency
Japan International Cooperation Agency
The Japan International Cooperation Agency is an independent governmental agency that coordinates official development assistance for the government of Japan...
.
At the 2010 World Geothermal Congress in Bali, several companies were awarded the rights to develop geothermal fields and power plants: Golden Spike Indonesia won the tender to develop a power plant at Mount Ungaran
Mount Ungaran
Mount Ungaran is a deeply eroded stratovolcano, located in the south of Semarang, Indonesia. There are no historical records about the mountain activities. Two active fumarole fields are found on the southern flanks....
in Central Java, Sokoria Geothermal Indonesia gained rights to develop a plant at Ende
Ende, Indonesia
Ende is the capital of the Ende Regency, East Nusa Tenggara province of Indonesia. Ende is located on the southern coast of Flores Island. The city has a population of 60,000 residents.-History:...
, on Flores
Flores
Flores is one of the Lesser Sunda Islands, an island arc with an estimated area of 14,300 km² extending east from the Java island of Indonesia. The population was 1.831.000 in the 2010 census and the largest town is Maumere. Flores is Portuguese for "flowers".Flores is located east of Sumbawa...
island, while Supreme Energy was chosen to develop plants at Mount Rajabasa
Rajabasa
Rajabasa is an isolated 1281-m-high conical volcano along the Sunda Strait located at the most South-Eastern point of Sumatra.It has a well-preserved 500 x 700 m summit crater with a swampy floor, the volcano is covered with vegetation...
in Lampung and Solok
Solok
Solok is a city in West Sumatra, Indonesia. Its motto is Kota Beras, which means "the rice city". It has an area of 57.34 km² and a population of over 52,100 people.-External links:...
in West Sumatra. These projects were estimated to require a total investment of US$1.68 billion.
As of 2010, a total of 265 potential sites for plants have been identified across the country. Development of the industry, however, involves a range of complex policy issues, some of which are proving to be a continuing source of controversy. In mid 2011, for example, the Indonesian Government issued an expected regulation providing certain guarantees for investors with the aim of encouraging increased investment in the geothermal sector. However, investor response was guarded, suggesting that key aspects had not been addressed in the regulation.
Recent developments
In recent years, the Indonesian Government has announced plans for two 'fast-track' increases in the total capacity of Indonesia's electricity generation network of 10,000 MW each. Under the second of these fast-track plans, it was forecast that a relatively large share of 3,970 MW would be installed in geothermal plants. In practice, the development of the geothermal sector has been experiencing difficulties. In September 2011, the Indonesian state-owned electricity utility Perusahaan Listrik NegaraPerusahaan Listrik Negara
PLN is an Indonesian government-owned corporation which has a monopoly on electricity distribution in Indonesia.- History :...
(PLN) announced that the outlook was that by 2014 only 1,200 MW of power was likely to be produced from geothermal plants. The president director of the PLN, Dahlan Iskan, said that plans to develop a number of geothermal plants were behind schedule because private sector investors were reluctant to invest as a result of the perceived risks in the sector.
Policy issues
Expansion in the sector appears to be being held back because of the perceived risks of development. The Indonesian Government's plans for development of the geothermal sector rely largely on private sector investment. But numerous reports indicate that private sector investors are concerned about a range of risks including technical (geological) risks, regulatory risks stemming from uncertain government policy, and financial risks arising from the pricing policies determined by the Indonesian Government. There is disagreement within the Indonesian Government as to who should bear these risks. Policy makers in the power sector, with an eye to meeting the government's official investment targets, are often inclined to the view that at least some of the risks should be borne by the Indonesian Government through the national budget managed by the Ministry of Finance. Official policy from the Ministry of Finance has traditionally been cautious, resisting the suggestion that unspecified risks should be borne by the Indonesian budget.In response to reports about certain of the risks that private sector investors were concerned about, in mid 2011 the government issued a regulation intended to provide guarantees that the state electricity utility PLN would meet financial obligations to independent power producers (IPPs) who invested in the geothermal sector. But the regulation was quickly criticised by representatives of private investors as being too limited and for failing to clarify important concerns.
Pricing policy
Prices have been another important policy issue in the sector. In an effort to encourage private sector investment, the Indonesian government has been establishing a feed-in tariff
Feed-in Tariff
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...
scheme by instructing state electricity utility PLN to purchase power from geothermal projects at various rates ranging from around 6.5 US cents to over 12 US cents per kWh. The government is also preparing a regulation which is expected to specific the price at which the PLN must purchase power from geothermal plans in the second 10,000 MW fast-track electricity sector program which the government has announced; this regulation is expected to be finalised by early 2012..
Environmental issues
According to the Ministry of Forestry, around 80% of geothermal reserves are located in conserved forests. As the 2009 mineral and coal mining law includes geothermal exploration in the mining category, a presidential decree would be required to proceed in these areas. According to the ministry, geothermal mining will not cause environmental harm.In May 2011 the Indonesian government has imposed a two years moratorium on logging, however this excepts the energy sector, including geothermal activities.
See also
External links
- Directorate General of Minerals, Coal and Geothermal
- Indonesian Geothermal Association - NGO
- PT Pertamina Geothermal - Indonesian government-owned corporation (map and project data sheets)