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US$50b needed for geothermal energy
Indonesia, home to perhaps 40 percent of the world’s exploitable geothermal reserves, will need US$50 billion to develop the clean energy resource, a business association said
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ndonesia, home to perhaps 40 percent of the world’s exploitable geothermal reserves, will need US$50 billion to develop the clean energy resource, a business association said.
Indonesia could potentially generate 28,000 megawatts (MW) of geothermal energy.
“We estimate it would take $50 billion to develop the potential, including developing the geothermal fields and the geothermal power plants,” Surya Darma, the chairman of the Indonesian Geothermal Association (API), said Sunday.
He added that the costs for field development and for power plant construction were almost the same. However, the latter project was relatively risk-free, he added.
Surya Darma said the biggest risk in running a geothermal project occurred during the field development stage as investors could waste large amounts of money if their drilling activities only led to dry holes.
“Currently, drilling one well costs around $6 million to $7 million,” Surya Darma said.
Indonesia only extracts 1,196 MW from geothermal sources, 4 percent of the total potential.
The government expects to geothermal sources to generate 3,977 MW more in the second phase of the government’s fast track program for electricity supply.
Energy and Mineral Resources Ministry geology division head R. Sukhyar said that developing geothermal energy would help Indonesia reduce fossil fuel consumption.
“If Indonesia could generate 9,000 MW from geothermal energy over 30 years, we would save around 4 billion barrels of fuel,” he said.
International Geothermal Association (IGA), the ministry and API will host the World Geothermal Congress in Nusa Dua, Bali, which runs from Monday to Friday.
This is the fourth congress with a theme “Geothermal: the Energy to Change the World”. President Susilo Bambang Yudhoyono is scheduled to open the congress.
Organizer Herman Darnel Ibrahim said the congress was a forum for scientists, experts, industrialists, developers, operators and regulators of geothermal industries.
“We’re expecting 2,500 participants from 85 countries,” he said.
“Deals on several geothermal projects will be signed during the event,” Surya Darma said.
Herman said latest research showed that worldwide, geothermal energy could generate a potential 160,000 MW energy, but that currently, only 10,000 MW was being generated.
