Geothermal offers a unique opportunity to decarbonise Indonesia’s energy systems and reduce dependence on fossil fuels. Indonesia aspires to increase its geothermal generation to 20% by 2030. Given Indonesia’s abundant geothermal steam resources, this is entirely possible but various persistent challenges have conspired to slow progress in achieving these targets.
Identifying and addressing the root of the problems and the challenges behind the slow progress in achieving Indonesia’s renewable energy target is important to support Indonesia’s energy transition ambitions.
As a long-standing friend of Indonesia, Aotearoa New Zealand continues to be an important and trusted partner in the geothermal sector. Through support for geothermal technical assistance and capacity building to strengthen Indonesia’s human resources in the sector, New Zealand is helping Indonesia accelerate its geothermal development to support achievement of the Indonesia’s climate goals.
To get some thoughts and feedback from geothermal industry stakeholders about Indonesia’s geothermal development trajectory, challenges and opportunities, the New Zealand Embassy hosted an industry-led forum on 28th May 2024 at the Fairmont Hotel in Jakarta.
Guest speakers the New Zealand Ambassador to Indonesia, Kevin Burnett and the Director General of EBTKE, Ibu Eniya Listiani Dewi set the scene for attendees. The event, attended by around 50 industry stakeholders from the private and public sectors, kicked-off with a breakfast networking session, followed by a panel discussion on some key topics, with questions and comments from the floor. The panel was moderated by Greg Ussher and Alex Batten from Jacobs.
By way of summarizing the current context, the Moderators highlighted some key issues they saw in the geothermal space in Indonesia, and what they are seeing globally: growth in geothermal development in Indonesia, with only 62 MW added to the grid since the end of 2021; low tariffs and high capital expenditure; as well as prescriptive regulations and processes. All considered to be challenges for the sector hindering development, with some developers looking offshore for geothermal projects as a result.
It was then put to the panelists – In spite of the current challenges, how do we move geothermal development in Indonesia forward?
The panelists include Pak Gigih, Director General of Panas Bumi, Pak Julfi Hadi, President of INAGA, and Pak Christyono, Head of PLN Geothermal. Panelists noted that as Indonesia treads the path towards realizing the full potential of geothermal energy, the country must also confront those challenges that lie ahead. From technological innovation to policy frameworks, from investment barriers to environmental considerations, there are hurdles that the industry can overcome together.
Closing remarks by Kirk Yates, Development Counsellor at the New Zealand Embassy focused on the future, with the update of New Zealand’s contribution of NZD 15.64 million (USD 9.6m) to the Indonesia-Aotearoa New Zealand Geothermal Energy Programme (PINZ) over the next five years to aid in the development of the geothermal industry in Indonesia. This is a continuation of past support but delivered through a new, flexible, and partner-driven approach at a strategic level, alongside an on-going technical skills training component, that are at the core of a flourishing geothermal industry.
Source: New Zealand Embassy via email correspondence
The post Moving geothermal development in Indonesia forward – where are we at? first appeared on ThinkGeoEnergy – Geothermal Energy News.