We can use geothermal for our green economyJakarta (ANTARA) - Indonesia could become the center for the global geothermal industry on account of its huge geothermal potential, President Director of PT Pertamina Geothermal Energy (PGE), Ahmad Yuniarto, stated.
"Indonesia has huge geothermal potential, with its abundant resources. The electricity produced from geothermal energy is more stable, and there is still room for competitive pricing. Geothermal energy is very competent as baseload generators for any power system," he noted here on Monday.
With its position as the center for the global geothermal industry, Yuniarto remarked that national geothermal-based energy resiliency can be achieved. Geothermal has become the most relevant renewable energy source to meet the domestic demand.
PGE is part of the state-run energy firm Pertamina's power and new renewable energy subholding.
According to Yuniarto, the government will need to put in additional efforts to achieve the target of geothermal development.
Geothermal energy that is used to produce green hydrogen would have a remarkable multiplier effect through its development, although it would need major investment.
"We can use geothermal for our green economy. This will give Indonesia a higher value, but the point is how can we produce green hydrogen with cost efficiency," he stated during a workshop on geothermal recently.
PGE has worked on cooperation with some related ministries for the development of green hydrogen. The company has also sought strategic partners in the business.
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"In future, demand for green hydrogen will not only come from the domestic industry but also from abroad," he remarked.
To date, PGE is ranked first in terms of national geothermal management, with an installed capacity of 1,887 megawatts (MW). A total of 1,205 MW is managed with partners and 672 MW is operated alone by PGE.
Geothermal development is expected to reach 5,444.5 MW in 2030, with state-run electricity firm PT PLN's installed capacity of 1,077.5 MW and independent power producer (IPP), 4,367 MW.
Within the next decade, PGE has targeted to double the installed capacity of geothermal-based clean energy that it operated alone. By 2030, it has targeted to increase the installed capacity to 1,540 MW.
"This means that in 2030, PGE has the potential to contribute to a potential emission reduction of nine million tons of CO2 per year and targets to become the top three geothermal producing companies in the world," Yuniarto stated.
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Meanwhile, PT PLN's Vice President of Geothermal Hendra Yu Tonsa Tondang said, a crucial problem in geothermal development is the gap in electricity tariffs and the project's economy.
Tondang highlighted several instruments to close the gap, including the implementation of carbon tax, lowering the cost of electricity production in eastern Indonesia, capital expenditure incentives, government drilling, green/clean energy funds, and the application of appropriate technology, so as to increase the project success ratio.
Renewable energy-based electricity tariffs are still higher than fossil fuels-based ones, thereby necessitating the government's involvement to encourage the use of new and renewable energy.
"We need policies from the government, especially on tariffs. When the tariff is higher than the BPP (electricity generation cost), then the subsidy will also increase," he affirmed.
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Translator: Faisal Yunianto, Sri Haryati
Editor: Fardah Assegaf
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