JAKARTA (TheInsiderStories) – Oil and gas holding, PT Pertamina, prepared the unit, PT Pertamina Geothermal Energy, to become the leader of the geothermal holding will form by state own enterprises ministry, said the spokesman early of this week. The energy producer also aimed to bring the new entity listing in the local bourse in this year.
As reported, PGE, PT Geo Dipa Energi, and PT PLN Geothermal will merged and creates new entity with total assets more than US$500 million. The spokesman, Agus Suprijanto, stated that his party still awaits the government decision on the plans. Last week, deputy minister at the ministry, Pahala Mansury, hope the merging process will be completed in this year.
Pertamina Geothermal itself has budgeted an investment around $2.46 billion until 2026 to develop three Geothermal Power Plant projects, namely the expansion Lumut Balai in South Sumatera with a capacity of 55 megawatts (MW), Hululais in Bengkulu with 2 x 55 MW of power, and Sungai Penuh in Jambi with capacity 55 MW.
Based on the official data, Pertamina has an installed geothermal power plants about 672 MW from and managed five geothermal areas, three geothermal development projects, and three geothermal exploration fields. The projects that have been operating included Kamojang, Lahendong, Ulubelu, Karaha , and Lumut Balai.
The Ministry of Energy and Mineral Resources has reported, until 2020, the installed capacity of the national geothermal power plants will reach 2,130.7 MW or no improvement compared to the installed capacity in 2019. PGE contributed 31.5 percent of the total capacity.
Indonesian government sees the country could manages 1 GW of geothermal projects in 2030 showed by the roadmap developed by the energy and mineral resources ministry. The country itself has considerable geothermal energy potential with capacity 25,300 MW, but only 2,130 MW has been absorbed as a source of electrical energy. The data showed, the geothermal potential in Indonesia reached 28.5 GW.
To support the targets, 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.
While, the director general at EMR ministry, FX Sutijastoto said, 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,” he concluded.
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