Energy ministry fund may aid geothermal developments Bisnis Indonesia
(Insider Stories)-A fund to support geothermal investment planned by the Energy & Mineral Resources and Finance ministries may help speed development of Indonesia’s geothermal sector.
“We will identify and create a list of geothermal project areas that are facing difficulties so that we can understand the difficulties they are facing and seek solutions,” energy ministry director general for new energy and energy conservation Rida Mulyana said as quoted by Bisnis Indonesia.
To speed development the two ministries plan to conduct an initial survey to determine geothermal resources at developments and assess the current practice of boring three or more geothermal wells per project, she said.
The planned fund will seek to assist in addressing financial and regulatory difficulties that have kept 50 of 59 geothermal developments in Indonesia from producting so far, Mulyana said.
Mulyana said that in order to gain permits for geothermal development more easily, geothermal investors should assure the country’s Ministry of Forestry that geothermal development doesn’t cause undue destruction of forests.
She added that geothermal development requires around 5-7 years for production to begin, an longer horizon than some other types of energy developments, and that at $40 million per site exploration can be relatively expensive. The industry practice of drilling at least three wells per project can also add to costs, she said.
