Jakarta—According to ReforMiner Institute, during 2017-2023, the installed capacity of geothermal only increased by around 789.21 MW. Indonesia has a geothermal resource potential of 23,765.5 MW, about 40 per cent of the total global geothermal potential.
Despite its huge potential, geothermal energy development in Indonesia is still relatively slow. ReforMiner Institute Executive Director Komaidi Notonegoro said that since it began in the 1980s until the end of 2023, the total installed capacity of geothermal power plants in Indonesia has only reached 2,597.51 MW or around 10.3 per cent of the total potential.
“If all of Indonesia’s geothermal potential can be utilised, there is the potential to reduce greenhouse gases (GHG) by around 182.32 million tons of CO2e, or equivalent to 58 per cent of the energy sector’s GHG reduction target by 2030,” Komaidi said in an official statement, on Thursday, June 13.
He said that since geothermal energy is relatively non-exportable, its use is prioritised for domestic purposes. Geothermal energy has several advantages over other new and renewable energy sources, such as not depending on the weather, greater energy production, higher capacity levels, and cheaper operating costs.
According to PLN Statistics 2022, the average operating cost of geothermal power plants is IDR 118.74/kWh, far below the average operating cost of national power plants, which is IDR 1,473/kWh.
However, Notonegoro notes that despite its advantages, geothermal has not been a top priority in implementing the energy transition policy. The 2021-2030 electricity supply plan (RUPTL) sets the target for additional new energy and renewable energy (EBET) generation until 2030 at 20.9 GW, with only 16 per cent coming from geothermal power plants.
The National Energy Policy (KEN) document also does not prioritise geothermal utilization. Until 2050, the generating capacity of bioenergy, hydropower, and solar power plants is targeted at 26 GW, 38 GW, and 45 GW, respectively, while geothermal capacity is only targeted at 17.5 GW.
Notonegoro noted that the problems of geothermal development in other countries are relatively similar to those in Indonesia. However, a number of countries, such as the United States, Kenya, Iceland, New Zealand, and Mexico, have succeeded in making geothermal electricity prices competitive through innovative policies. (Hartatik)
