The Jakarta Post
The Indonesian Geothermal Association (INAGA) has said innovative breakthroughs are needed to speed up developments in the geothermal industry to achieve the country’s target of geothermal power plants producing 7,000 megawatts (MW) by 2025.
INAGA chairman Abadi Purnomo acknowledged that the 7,000 MW geothermal power plant target was quite ambitious because Indonesia’s current total geothermal capacity stood at only 1,493.5 MW. Hence, there was a shortfall of 5,500 MW, which must be obtained within 10 years, or 550 MW per year, he went on.
"Of course, this large target requires a very large investment, which amounts to US$4 million to $5 million per MW," he said during the fourth Indonesia International Geothermal Convention and Exhibition (IIGCE) at the Jakarta Convention Center on Wednesday.
To attract investment in the geothermal sector, Abadi said, innovations were needed, including attractive electricity rates for geothermal developers, a guarantee that state power company PLN would act as an off taker and purchase the electricity and legal certainty.
Abadi reminded that exploration was a key activity in the geothermal business chain. He believed Government Regulation (PP) No. 59/2007 on in-direct use exploitation would encourage investors to carry out exploration drilling activities.
He further said PLN had conveyed its commitment to realize the target set by the government by purchasing power in accordance with the rates set by the government.
"The INAGA has striven and will continue to work with the government to develop geothermal energy in Indonesia for the benefit of all the country’s people," he went on. (ebf)
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