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RI to miss 2025 geothermal energy target, association warns
Indonesia is set to miss its target 7.2 gigawatt (GW) of installed geothermal power capacity because of high development costs and a lack of supporting regulation, according to the Indonesian Geothermal Association (INAGA).
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Officials inspect a steam separator tower on April 25, 2022, at Pertamina’s geothermal binary plant in Lahendong, Tomohon, North Sulawesi. (Reuters/Fransiska Nangoy)
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ndonesia is set to miss its target 7.2 gigawatt (GW) of installed geothermal power capacity because of high development costs and a lack of supporting regulation, according to the Indonesian Geothermal Association (INAGA).
INAGA chairman Prijandaru Effendi said Indonesia’s geothermal energy development was moving at a “very slow pace” as the country had only seen an average annual increase of 60 megawatt-hours (MWh) in nationwide capacity over the last 40 years.
“We’re talking two years from today, and for sure it will not happen,” he said in an event hosted by the New Zealand Embassy and INAGA in Jakarta on Tuesday, referring to the odds of Indonesia reaching the 7.2 GW target set for 2025.
Experts told The Jakarta Post that the domestic geothermal industry was hedged in by high development costs and uncertainty about electricity offtake pricing, which clouded the economic prospects for undertaking local projects.
Data from the Energy and Mineral Resources Ministry show that the total installed geothermal power generation capacity in Indonesia was 1.9 GW in 2018. It then rose 21 percent over the next four years to reach 2.3 GW last year.
Read also: JETP could help drive Indonesia’s geothermal growth
Prijandaru went on to say that the government had tried to make geothermal energy projects more attractive through Presidential Decree No. 112/2022 on the acceleration of renewable energy development.
