| Abstract |
As the world's largest geothermal potential, Indonesia should lead in its renewable resources development to become a clean energy producer. The potential of geothermal in Indonesia is reported to be about 29 GWe composed of a speculative resources, hypothetical resources, possible reserves, probable reserves and proven reserves. Now, the National Geological Agency of Indonesia (NGAI) and Directorate General of New, Renewable Energy & Energy Conservation of Indonesia updated that the resources and reserves are located in the 312 locations across Indonesia. The current geothermal fields operate from 13 locations with the increase of 3 new geothermal fields in 3 locations compared to 10 locations in the year 2015. The total current installed capacity is 1948.5 MW with additional capacities of 465 MW an increase to those installed of 1432 MW in the year 2015 presented in Melbourne. These additional capacities show the fastest growth of geothermal energy development in the last few years. The installed capacities consist of geothermal power plant in Sibayak (12 MW), Kamojang (235 MW), Darajat (270 MW), Dieng (60 MW), Gunung Salak (377 MW), Lahendong and Tompaso (120 MW), Wayang Windu (227 MW), Ulu Belu (Lampung, 220 MW), Patuha – West Java (55 MW), Ulumbu – Flores (10 MW), Mataloko – East Nusa Tenggara (2,5 MW), Sarulla - North Sumatra (330 MW, and Karaha – West Java (30 MW). At least about another 190 MW will be commissioned in 2019 such as Lumut Balai – South Sumatra (55 MW), Sorik Marapi Modular Unit 1&2 (20 & 30 MW each), Sokoria Unit 1 (5 MW), and Muara Laboh Unit 1 – West Sumatra (80 MW). The total capacities by the end of 2019 is about 2,138.5 MW respectively. There is no indication of fast growth in geothermal direct-use in Indonesia even after the new geothermal regulation has been issued to attract these businesses to be invested by private companies. The Government of Indonesia (GOI) are focused to formulate attractiveness of geothermal use for electricity. In terms of geothermal development and its utilizations, the GOI is committed to utilize the biggest geothermal energy resources to become the world's largest geothermal producers in the world. Geothermal as the leading alternative energy might substitute fossils and may fulfill Indonesia’s growing demand for electric power and guarantee the security of the energy supply in the long term of national energy needs. The new road map has been introduced in 2017 to support our National Energy Policy. The total expected capacity of the geothermal energy in the national energy mix policy is 7.2 GWe. At least, 2.8 GW will be on stream by 2021 to fulfill the portion of geothermal as part of 23% in the renewable energy target by 2025. To attract investors to develop geothermal, GOI has reviewed the geothermal electricity price to achieve the economic viability and the public affordability of the low pricing policy to the public utilities. GOI has issued the Ministry of Energy regulation no.50/2017 for renewable energy tariff to make certainty in the RE business scheme. The regulation is revising the geothermal feed in tariff structure which introduced in 2014 to support electricity infrastructure investment. The scheme of the tariff will apply to the new and existing geothermal development. In fact, the development of geothermal in the last two years is almost stagnant. The fast growth of geothermal development is mainly coming from the existing power purchase agreement (PPA). However, with the national renewable energy target and Paris Agreement commitment ahead, Indonesia should also assess the way to achieve the national RE commitment. Instead, GOI still continues to encourage investors by offering incentives in exploration activities and lessens the amount of risk by allowing the government assessing exploration activities using geothermal fund and others source of renewable fund. These policies are issued to achieve a leap frog step in development. Since the progress of geothermal development is behind the expectation of becoming 6000 MW by 2019, now the target has been revised to 2,484.5 MW by 2020 and 3,729.5 MW by 2023. It is unlikely due to, unattractive geothermal rate of return, high risk in PPA, purchase guarantee, uncertainty in protected and conservation of forest area. Finally, it is expected that the installed capacity of geothermal in the year 2025 is about 7,241.5 MW, and 10,000 MW by 2030 which is planned to be commissioned with any effort. |