Indonesia to raise capacity of geothermal projects to 1GW
Topics: INDONESIA GEOTHERMAL
Based on the official data, the geothermal potential in Indonesia may reach 28.5GW. However, the total capacity of geothermal power plants across the country only stood at 2.1GW.
Earlier, Minister of Energy and Mineral Resources Arifin Tasrif stated that the ministry continues to attract investors to invest in the new renewable energy sector through the cost recovery contract scheme in the geothermal sector.
He noted that the geothermal sector’s development poses a higher risk than other sectors, so incentives are needed to encourage investment in the field.
Executive Director of the Institute for Essential Services Reform Fabby Tumiwa noted there were a number of obstacles in developing geothermal energy in the country, such as high investment costs due to high exploration and engineering and procurement costs.
It is estimated that the country needs over than 15 billion USD in investment to meet its geothermal power capacity targets. ■