Indonesia Aims to Lead Global Geothermal League with 6,500 Megawatts by 2025

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Indonesia plans to auction areas in the country with geothermal power potential in mid-2014. The areas are expected to generate a minimum of 375 megawatts (MW). Government officials plan to develop geothermal projects with a combined capacity of as much as 6,500 MW by 2025.

The areas include Lake Ranau in Lampung and South Sumatra (110-MW power potential), Mount Lawu in central and east Java (100 MW), Mataloko in east Nusa Tengarra (30 MW), Simbolon Samosir in North Sumatra (80 MW) and Way Ratal in Lampung (55 MW).

Indonesia is estimated to have 29,000 MW of geothermal potential, representing about 40% of global geothermal resources, but the current installed capacity is only 1,341 MW. In 2014, there will only be 62 MW of additional capacity from plants at Patuha (55 MW), Ulumbu (5 MW) and Cibuni (2 MW).

"If we carry out new tenders now, the additional capacity will be seen only in the next six to seven years," said the geothermal director at the Energy and Mineral Resources Ministry. He added that there are about 1,500 MW of geothermal projects under development. Under the plan to develop renewable projects, there could be geothermal projects with a combined capacity of 6,500 MW by 2025.

These would include the major Saruylla Project in North Sumatra, which has secured $1.17 billion in funding from international sources of finance, including the Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB) and a consortium of international commercial banks. The project would have a three-stage development for a total of 330 MW.

Statistics recently reported by the Geothermal Energy Association (GEA) at its International Geothermal Showcase in Washington D.C. showed that there could be a time in the near future when the U.S. is no longer the leader in geothermal energy production. The U.S. has about 1,000 MW in the pipeline and a nameplate capacity of 3,400 MW, for a total of 4,400 MW. Meanwhile, Indonesia has 4,400 MW of planned capacity additions in the pipeline alone.

The GEA reports that in terms of established nameplate capacity, the U.S. still outpaces the Philippines (1,904 MW in 2013) and Indonesia (1,333 MW in 2013).

Globally, significant geothermal development growth is expected during the next few years. In East Africa, Kenya and Ethiopia are building power plants larger than 100 MW. The average size of a geothermal power plant in the U.S. is about 25 MW.

Representatives from 34 countries at the GEA Showcase represented more than 50% of geothermal projects worldwide. The projects could mean more than 10,000 MW of new power and represent about $45 billion in new investment.

For related information, see April 25, 2014, article - California's Salton Sea Initiative to Leverage Geothermal Energy, Improve Air Quality.

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