Indonesian Government supports the development of geothermal power plants

If you are looking for Indonesian Market research for energy and power development, you can read this.

Local companies and foreign investors from the USA, Italy, Japan, South Korea, Turkey and China expressed an interest in projects that shed a total aggregate capacity of 255 megawatts.

The Ministry of Energy and Mineral Resources Indonesia considers this auction to be quite attractive for both parties, but the results will need to wait for the end of the year 2017, or the beginning of the year 2018.

In recent months, the Indonesian government has implemented an auction of six geothermal projects worth $1.02 billion to expand the capacity of Indonesia’s renewable resources as part of its plan to become the world’s largest geothermal energy producer.

The geothermal projects offered are in the following locations: Kapahiang in Bengkulu with a capacity of 110 MW, Simbolon Samosir to North Sumatra with 110 MW, Borapulu in central Sulawesi with 10 MW, Lamiding on the northern Maluku with 10 MW and Oka Ile Ange in Mount Sirung on the eastern Nusa Tenggara with a capacity of 10 MW and 5 MW.

” The amount of investment in each geothermal region varies depending on region and local conditions. On average, however, the investment in geothermal development is about $4 million to 1 megawatt, “said Yunus Saefulhak, director of the Geothermal Resources of the Ministry of Energy and Minerals.

Indonesia as a geothermal power

Indonesia ranks among the world’s geothermal powers. It is currently the third largest global geothermal producer behind the first U.S. and second in the Order of the Philippines. The government plans to push Indonesia to the first place in the rankings by 2021 and ahead the US and the Philippines.

According to estimates, Indonesia now has a potential geothermal capacity of approximately 28.000 MW, which can account for up to 40% of the world’s total resources. Indonesia currently uses only about 6% of its geothermal potential and therefore the Government is very active in supporting and promoting geothermal power projects.

The geothermal capacity of the current largest US producer will likely stagnate at 3.450 MW and no further development in this area is planned. The Philippines, currently the second largest geothermal producer, has already fully exploited its potential and can even record the decline in capacity from the current 1.870 MW.

This year Indonesia will add additional 215MW capacities of geothermal power plant Sarulla to northern Sumatra, 30MW from power plant Karaha in western Java, 20MW from Sorik Marapi North Sumatra and 55MW from Ulubelu 4 in Lampung.

Indonesia expects to have a geothermal capacity of 3.559 MW in the next four years. According to estimates, Indonesia now has a potential geothermal capacity of approximately 28.000 MW, which can account for up to 40% of the world’s total resources. Indonesia currently uses only about 6% of its geothermal potential and therefore the Government is very active in supporting and promoting geothermal power projects.

If you are company in Europe specializing in energy production and would like doing business in Indonesia, Indonesian government is providing great incentives and tariffs that can ease your business expansion to Indonesia and South East Asia. 

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