Desy Nurhayati and Alfian, The Jakarta Post, Nusa Dua | Sat, 05/01/2010 12:12 PM
The 5th World Geothermal Congress wrapped up Friday in Bali with a global commitment to accelerate the use of geothermal reserves as a renewable and environmentally positive source of energy.
In the Bali Declaration signed by representatives of the world's geothermal community, countries emphasize their willingness to push "geothermal energy to change the world" to provide a sustainable, peaceful, healthy and clean environment with prosperity for people.
Increased investment needs to be mobilized to develop untapped geothermal resources for national, regional and local geothermal projects in developing countries, advanced countries and economies in transition. Greater acceptance of geothermal energy by international funding agencies can play a major role, the declaration read.
"World leaders should strive to create a favorable political climate by molding public opinion to be conducive to the sustainable development of geothermal energy, including by supporting risk mitigation insurance, cost sharing, loan guarantees and production tax credits."
"Investment can be provided in the form of financial incentives from government, loans and capital investment from banks, private investors and venture capital funds. Policies need to be established to facilitate access to these resources."
The declaration also urged that legislative and administrative barriers be removed.
Currently, geothermal energy has only been developed to a very limited extent compared to the huge reserves available partly due to difficulties in obtaining financing, as well as to legal and institutional barriers.
More funding should be committed to research and development in order to improve the cost competitiveness of geothermal energy, which could be extended to new technological areas such as low temperature development.
Developed countries are urged to transfer know-how on geothermal exploitation to developing countries, facilitated by cooperation between government, private and academic institutions, especially by joint training and education, capacity building and technical assistance.
More than 2,500 participants representing 85 countries agreed that the world should speed up development of geothermal energy to avoid additional carbon dioxide emissions and reduce current emission levels.
"Developing this energy will also create employment opportunities, increase industrial development and improve the living standard of citizens throughout the world. It will also hopefully secure adequate and environmentally responsible energy supply for future generations," the declaration read.
Director of geothermal utilization at the Energy and Mineral Resources Ministry Sugiharto Harsoprayitno said Indonesia was looking forward to concrete benefits from the Bali declaration.
"From the Indonesia side, we have shown our commitment as we have planned to generate another 4,000 megawatts of geothermal power. We expect other countries to contribute technologies and investment for this and I think we do have good chances for that," he said.
Indonesian Geothermal Association (INAGA) chairman Surya Darma voiced similar opinions. "We expect that all countries can cooperate in improving each country's capability so that the world's geothermal generating capacity can be increased," he said.
Some companies benefited already from this new expansion as some business deals were concluded during the congress in Bali. For example, state power firm PT PLN and state-backed PT Pertamina Geothermal Energi signed four power purchase agreements leading to US$541 million in investment.
"We heard that some other business to business agreements were also made during the congress," Surya Darma said. The next World Geothermal Congress will be hosted by Australia and New Zealand and will take place in Melbourne in 2015.
