Geothermal Development: A Long, Challenging Journey

There is still a significant amount of work awaiting government attention to expedite the development of geothermal energy, which is a promising source of renewable energy with ample reserves in the country.

Stepanus I Nyoman A. Wahyudi

7 Nov 2023 - 19.33
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Geothermal Development: A Long, Challenging Journey

Routine checking of geothermal power plants owned by PT. Pertamina Geothermal Energy. Photo/JIBI-Nurul Hidayat

Bisnis, JAKARTA — There is still a significant amount of work awaiting government attention to expedite the development of geothermal energy, which is a promising source of renewable energy with ample reserves in the country.

The issues of tariffs, funding, and the shared use of electricity networks, also known as power wheeling, have been persistent challenges in the development of geothermal energy. Despite Indonesia's efforts to increase the share of new renewable energy to 23% in the national energy mix by 2025, these problems have not been fully resolved.

Energy analyst from the Institute for Energy Economics and Financial Analysis (IEEFA) Putra Adhiguna noted Monday (6/11) that geothermal development is still grappling with the same tariff-related issues that were present a decade ago.

He emphasized that the government could address the tariff issue by providing clear and specific timelines for tariff negotiations. Historically, the lack of clarity in this area has been a significant obstacle to geothermal development.

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Editor: Aprilian Hermawan
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Geothermal Development: A Long, Challenging Journey

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