I

ndonesia is showing its commitment to developing renewable energy by continuing several geothermal power plant projects across the country with a total capacity of 1,000 megawatts (MW).

State-Owned Enterprises Minister Dahlan Iskan said on Monday that the development of nine power plant projects by state oil company Pertamina were now at various stages of development.

Dahlan made the statement after a closed-door meeting with directors of Pertamina and state-owned electricity firm PT PLN.

'€œThis shows very good progress because a number of the projects had been delayed for a long time due to various problems,'€ he said, adding that Pertamina and PLN were in discussions over the ceiling price for electricity generated from the geothermal power plants.

The nine geothermal power plant projects are Kamojang Unit 1 and Karaha Bodas in West Java, Ulubelu units 3 and 4 in Lampung, Lahendong units 5 and 6 and Kota Mobago in North Sulawesi, Lumutbalai units 1 and 2 and Lumutbalai units 3 and 4 in South Sumatra, Hulu Lais units 1 and 2 in Bengkulu and Sungai Penuh in Jambi.

The projects, carried out by PT Pertamina Geothermal Energy (PGE), a subsidiary of PT Pertamina, are estimated to cost US$2.29 billion.

Pertamina previously stated that overall development of all the projects would take between five and eight years.

'€œUlubelu units 3 and 4 will be completed soon,'€ Pertamina upstream director Muhammad Husein said after the meeting.

The Energy and Mineral Resources Ministry'€™s director general for new and renewable energy, Rida Mulyana, said previously that all nine geothermal power plant projects were expected to finish in 2025.

Rida said that in this year alone, three geothermal power plants in Patuha and Cibuni in West Java, and Ulumbu in East Nusa Tenggara, with a total capacity of 62 MW would start operating, boosting the country'€™s total geothermal capacity to 1,405 MW by year-end.

As part of its new energy policy, the government is targeting up to 9,500 MW in electricity produced from geothermal power plants by 2025.

The new energy policy sets a number of targets for the country'€™s supply and use of energy until 2050.

The development of renewable energy sources, such as geothermal, solar, water, wind and biomass, will become the government'€™s priority in the future as, according to the new policy, the use of renewable energy will be increased from 6 percent at present to at least 23 percent by 2025 and at least 31 percent by 2050.

Meanwhile, the use of fossil fuels, which at present account for 49 percent of the total energy mix, will be reduced to less than 25 percent in 2025, and less than 20 percent in 2050.

The use of natural gas will be increased from 20 percent to at least 22 percent in 2025 and 24 percent in 2050.

Besides Pertamina, PLN has also reiterated its support of the government'€™s energy-mix policy to target a reduction in the national use of oil.

PLN president director Nur Pamudji said that the firm'€™s total oil consumption was expected to fall to 6.3 million kiloliters (kL) this year from 7.47 million kL last year.