With its abundant geothermal reserves, Indonesia aims to harvest more green energy

KAMOJANG, West Java: Indonesia's biggest geothermal company PT Pertamina Geothermal Energy, which is state-owned, is hoping to export clean energy to neighbouring countries as the region looks towards green alternatives and away from fossil fuels.
 
Indonesia sits on the Ring of Fire, an area with some of the most active volcanoes in the world, resulting in an abundance of geothermal resources.
 
The country has 40 per cent of the world's potential geothermal resources, with an estimated 24 gigawatt of reserves ready to be cultivated. But currently, it is harnessing just 10 per cent of this energy potential.

As the push for renewables grows more urgent in the fight against climate change, observers say it must be full steam ahead for geothermal companies to harvest more green energy. 

MORE RELIABLE THAN SOLAR AND WIND POWER

Indonesia is one of the top geothermal energy producers in the world, with more than 300 sites.
 
On the slopes of Mount Guntur, an active stratovolcano in the West Java province, for instance, geothermal energy is harnessed from the Kamojang crater. 
 
Geothermal exploration began in Kamojang in 1926, and the first geothermal well was drilled there during the Dutch colonial era.
 
After nearly 100 years, the well is still emitting steam continuously at a high pressure today.
 
The Kamojang geothermal power field, the first in Indonesia, is managed by Pertamina Geothermal Energy.
 
“The advantage of a geothermal system is that it can operate 24 hours, seven days a week,” said Mr Hanifah Bagus Sulistyardi, operations manager at Pertamina Geothermal Energy (Kamojang). 
 
“The energy supply is not intermittent, compared with solar. The solar energy power plant can only operate a certain number of hours per day, and it cannot operate at night.”

CAPITAL-INTENSIVE INDUSTRY

Geothermal is a capital-intensive industry and companies face high investment risks, especially during the exploration and drilling phase.
 
This in turn increases the cost of electricity produced from geothermal energy.
 
Pertamina Geothermal Energy operates a total of six geothermal plants across Indonesia with an installed capacity of 672 megawatts.
 
The company plans to increase this to 1 gigawatt in two years. It also aspires to grow its business and export renewable energy.
 
“We have very huge hubs of geothermal (energy) in Sumatra,” said Pertamina Geothermal Energy president director Julfi Hadi. 
 
He added that Indonesia has geothermal reserves that it can share with neighbouring countries “to ensure our climate change objectives together can be met”. 

EXPORTING GEOTHERMAL ENERGY MAY NOT HAPPEN SOON

However, exporting geothermal energy out of Indonesia may not happen so soon.
 
Under Indonesian law, energy firms can only sell electricity to state-owned power company PT Perusahaan Listrik Negara.
 
“In the future, our electricity demand will rise,” said Mr Yudo Dwinanda Priaadi, director general of new renewable energy and energy conservation at the Ministry of Energy and Mineral Resources. 
 
“As Indonesia develops, its consumption will also rise, so whether it can be exported or not, we will wait and see. But what is clear (is that) the government always takes into account domestic interests first, and only then can we export.”
 
Indonesia is targeting net-zero greenhouse gas emissions by 2060.

“GREEN ELECTRICITY IS LIKE GOLD”

The country aims to have renewables make up almost a quarter of its energy mix by 2025, as it tries to reduce its dependence on fossil fuels. 
 
Earlier this year, Indonesia agreed to transport 2 gigawatt of solar power to Singapore from Batam island.
 
Observers said geothermal plants are expected to be part of the backbone of Indonesia's renewable electricity supply. 
 
“Right now, green electricity is like gold,” said energy transition strategist Fabby Tumiwa, executive director of the Institute for Essential Services Reform. 
 
“Having green electricity (will) increase renewable energy in your power system, (and) will reduce the energy intensity. I think in today's world, a climate-constrained world, it is about increasing your competitiveness.”