Indonesia: Geo Dipa Targeting to Adds 400 MW of Geothermal Power

PT Geo Dipa Energi, expects to adds up to 400 megawatts of geothermal power generation capacity in the coming years - Photo by the Company

JAKARTA (TheInsiderStories) Indonesian state-owned geothermal operator, PT Geo Dipa Energi, expects to adds up to 400 megawatts (MW) of geothermal power generation capacity in the coming years. In April, the state firm has start the first tests of the new 10 MW Dieng small scale geothermal power plant in Central Java.

The director, Dodi Herman reported, with its two geothermal power plants, Dieng and Patuha, the company has a total installed geothermal power generation capacity of 115 MW. The power producer plans to develop Dieng 2 and Dieng 3 with total capacity 110 MW. The US$21 million project is also in synergy with the Special Mission Vehicle under the ministry of finance and obtained project financing loans from PT Sarana Multi Infrastruktur.

The commercial operation date of the projects is targeting in 2023. Apart from Dieng Unit-2, Geo Dipa is also working on Patuha Unit-2 with total costs $400 million and with the same capacity. To carry out this project, the company has got funding around $335 million from the Asian Development Bank (ADB).

Indonesian government projected the country could manages one gigawatt (GW) of geothermal projects in 2030, showed the roadmap developed by the energy and mineral resources (EMR) ministry. Indonesia has considerable geothermal energy potential with capacity 25,300 MW but only 2,130 MW has been absorbed as a source of electrical energy.

Earlier, the EMR minister, Arifin Tasrif stated, his party continues to attract investors to invest in the new renewable energy sector through the cost recovery contract scheme in the geothermal sector. He noted, the development in the geothermal sector has a higher risk than development in other sectors, so incentives are needed to encourage investment in the geothermal sector.

Based on the official data, the geothermal potential in Indonesia reaches 28.5 GW. However, the total capacity of geothermal power plants across the archipelago only reached 2.1 GW. The director general at EMR ministry, F.X. Sutijastoto claimed, the geothermal energy has a strategic meaning for national energy security through the substitution of imported petroleum which is around 100,000 barrels per day until 2025. Petroleum itself is used to make Diesel Power Plants.

While, products derived from petroleum include LPG, aviation fuel, avgas, kerosene or kerosene, gasoline, diesel, asphalt, and paraffin. In terms of operational effectiveness, geothermal can be operated up to 90 percent with an operating time of 30 years. Compare with coal which is only effective 60 percent of capacity.

For diesel-electric power, it is even effective only 30 percent of capacity, and the operating time is only 10-20 years. Sutijastoto has announced, Indonesia needs over than $15 billion in investment to meet its target of reaching the geothermal power capacity targets. Until now only 1,948.5 MW or 7.8 percent of the geothermal potential is utilized.

Written by Editorial Staff, Email: theinsiderstories@gmail.com