Thursday October 26, 2006

Indonesia pushes for geothermal renewal

Indonesia is literally sitting on top of the solution for its energy needs: vast reservoirs of hot water deep beneath the earth's crust can be harnessed to generate electricity. It's a clean, renewable energy source. Yet the country continues to import millions of barrels of oil and fuel annually. Legal uncertainties, financial risks and government bureaucracy have repelled international investors from developing its geothermal resources. Tapping geothermal energy makes sense for a cash-strapped government that still subsidizes fuel for its citizens, who are steadily demanding more power in the face of routine blackouts and brownouts.

The sprawling archipelago sits on what is believed to be the world's largest geothermal resource base, with the potential to provide 21,000 megawatts - enough to supply all the energy needs for its 220 million people. But so far existing plants have a combined capacity of just over 800 megawatts, or 4 percent of Indonesia's potential, putting it behind the United States (2,100 MW), the Philippines (1,775 MW) and Mexico (975 MW).

President Susilo Bambang Yudhoyono renewed pledges to promote alternative energy sources, but industry experts say price remains a huge obstacle. Though long-term costs are low, the technology requires an upfront investment of more than $100 million. Because the energy must be used close to its source - unlike coal or oil, which can be exported - what a company gets for its electricity is key. "Sooner or later we have to develop geothermal," Sugiharto Harsoprayitno, director of the Ministry of Energy and Natural Resources' geothermal department said. "It's not the sole solution to our energy problems, but it would certainly help."

See also :

1. Abundant power from universal geothermal energy
2. Indonesia's LNG supremacy wanes as Chevron's fields run short
3. Asia going nuclear amid rising oil prices, global warming concerns

(2006-10-26 00:03:23 SGT) [Energy] Permalink

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