More geothermal power projects up for tender : VIDEO
More geothermal power projects up for tender
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Fedina S. Sundaryani The Jakarta Post
April 20 2016
The government will tender eight geothermal power plants countrywide this year as part of efforts to reach a target of 7,156 megawatts ( MW ) of electricity from geothermal energy.
The Energy and Mineral Resources Ministry’s geothermal director, Yunus Saefulhak, said on Tuesday that the geothermal power plant projects tendered this year amounted to approximately 1,160 MW and were expected to start operations in 2024.
“The bidding for three of the geothermal power plants has been completed while the remaining five will be offered in stages,” Yunus said on the sidelines of a press conference on the upcoming International Geothermal Convention and Exhibition ( IIGCE ).
The three contracts for which bidding has been completed are for Way Ratai, Lampung; Marana, Central Sulawesi; and Gunung Talang Bukit Kili, West Sumatra.
The Way Ratai site covers 70,710 hectares and has an estimated 105 MW of reserves. Under the plan, the power plant will have the capacity to produce an estimated 55 MW.
The Marana project, on 48,300 ha, has an estimated 36 MW in reserves and will support a power plant with 20 MW capacity. Meanwhile, Gunung Talang Bukit Kili is a 27,000 ha site with an estimated power reserve of 65 MW and the planned power plant will have a capacity of 20 MW.
The remaining five projects are Gunung Gede Pangrango, West Java; Gunung Hamiding, North Maluku; Gunung Wilis, East Java; Graho Nyabu, Bengkulu; and Gunung Geureudong, Aceh.
Yunus added that the ministry had decided to appoint three state-owned enterprises ( SOEs ) — oil and gas company PT Pertamina, geothermal power producer PT Geo Dipa Energy and electricity company PT PLN — to develop 10 geothermal power projects nationwide.
“The SOEs’ proposals are currently being evaluated but we hope the appointments will be completed by the end of this year,” he said.
The government has been trying to move away from fossil fuels, which have proven to be increasingly damaging both environmentally and financially, and hopes to reach a targeted 23 percent renewable energy utilization by 2025.
Although Indonesia is estimated to have around 28 gigawatt ( GW ) in geothermal potential, the country has targeted the use of geothermal energy at 7,156 MW, making it the biggest geothermal energy power producer in the world.
Currently, geothermal energy makes up 1,400 MW of the country’s total installed power plant capacity of about 55,000 MW.
Earlier in the conference, the ministry’s director general of renewable energy and energy conservation, Rida Mulyana, said the government was preparing three regulations in the hope of increasing investment and speeding up the development of geothermal energy sources.
The first government regulation would allow regions to reap economic benefits from geothermal power plant projects, while the second regulation would cover the direct use of geothermal resources for tourism, agriculture and industry.
The third government regulation would allow private companies to conduct surveys and exploration of potential geothermal reserves with a minimum three drill holes. If activity was successful, the company would receive the right to a direct appointment over the area.
The third regulation would stipulate that tenders should prioritize a company’s proposed work program and commitment to exploration over electricity selling prices.
Meanwhile, Indonesian Geothermal Association head Abadi Purnomo said the government should issue the three regulations as soon as possible as foreign investors were eager to plunge into the Indonesian geothermal power sector.
“For example, investors from New Zealand have shown great interest,” he said.
He added that the government should act fast as the country needed an addition of 600 MW from geothermal power plants annually in order to reach its target by 2025.
