Indonesia Plans Aggressively for Geothermal Development

---

Researched by Industrial Info Resources (Sugar Land, Texas)--As other Asian countries such as South Korea and Vietnam are just beginning to explore their geothermal potentials, Indonesia is steaming ahead with aggressive energy policies. Indonesia plans to develop at least 4,000 megawatts (MW) of geothermal energy as a part of its second accelerated electricity development program.

The newest accelerated electricity development program began last year and will run through 2015. By 2025, Indonesia aims to have a minimum of 9,500 MW of installed geothermal capacity. Other long-term goals include the reduction of greenhouse gas emissions and the deployment of widespread electricity availability. By 2020, Indonesia hopes to provide electricity to at least 90% of its population, an increase of 25% from today's standards.

The Asia-Pacific region, particularly the area associated with the Ring of Fire, has the most growth potential in the global geothermal sector, with 74 gigawatts (GW) waiting to be exploited through power plants. Indonesia itself has the potential to generate about 28 GW via geothermal energy and has a chance at becoming an energy giant in Southeast Asia in the next 15 to 20 years.

According to Industrial Info's Renewable Energy Database, Indonesia is currently expecting at least 10 geothermal projects to come online between the present and the end of 2015, representing more than $2 billion worth of total investments. One of these projects on the books, to be constructed near Sarulla in North Sumatra, will produce more than 330 MW of geothermal energy when fully completed in 2014. PT Medco Energi Internasional Tbk (Jakarta, Indonesia), in association with Ormat Technologies Incorporated (NYSE:ORA) (Reno, Nevada), is planning to complete the $710 million project in three phases, the first of which began during the fourth quarter of last year. Ormat Technologies is also involved in developing a geothermal power plant in Vietnam. For more information, see January article - Vietnam to Boot Geothermal Development.

View Project Report - 093000120 093000184 093000190

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.