| Abstract |
Sustainable geothermal operations refers to such energy that will be produced and used in such a way that it is compatible with the well-being of current and future generations. The general objective of this study is to identify and assess a simple set of business sustainability indicators that may enhance integrated (direct-indirect) utilization of geothermal energy generation addressing social, environmental as well as business issues. Some selected project parameters or business indicators were actual secondary data acquired from existing geothermal operations and projects in Pangalengan village, West Java. The geothermal producing field had for many years proven itself to maintain GOLD rating in environmental and social responsibility achievements from the State Ministry of Environment. Structural Equations Modeling (SEM) is a family of statistical models that seek to explain the relationship among multiple variables. In doing so, it examines the structure of interrelationships expressed in a series of equations, similar to a series of multiple regression equations. Theory must be the foundation of even the simplest of models; because variables may always be linked to one nother in multiple ways. A basic correlational selection of business or economic indicators, ecological or environmental indicators and social or socio-cultural indicators has resulted in a need to test relationship hypotheses of indicators of Local Involvement to Projects (social / socio-cultural), Biodiversity, Recharging or reinjection of brines and condensates and Emission of Greenhouse Gases (ecological) in addition to Reservoir Pressure (Business) – as independent variables impacting Actual Energy Pricing – as a dependent variable. The SEM model clearly shows that business, economics, ecological, environmental and social or socio-cultural indicators are instrumental in establishing a sustainable equilibrium in both direct and indirect geothermal resources utilization. |