PGE Targets Installed Capacity Of Geothermal Energy So 1,540 Megawatts In 2030

Photo: Doc. Antara

JAKARTA - PT Pertamina Geothermal Energy (PGE), a subsidiary of PT Pertamina (Persero), targets to increase the installed capacity of geothermal energy to 1,540 megawatts (MW) by 2030.

"That means by 2030, PGE has the potential to contribute to the potential reduction of carbon emissions by 9 million tons per year and targets to become the top three geothermal producing companies in the world," said PGE President Director Ahmad Yuniarto in an official statement, quoted from Antara, Saturday, February 11.

Indonesia has great potential for new and renewable energy reserves, one of which is geothermal. Based on the 2021-2030 Electric Power Supply Business Plan (RUPTL), it recorded that the potential for geothermal in Indonesia reached 29,544 MW.

As for 2022, the capacity for geothermal energy installed in Indonesia has reached 2,347.63 MW as projected by the Ministry of Energy and Mineral Resources.

Of the total geothermal energy installed capacity of 2,347.63 MW, PGE manages 13 geothermal working areas with a total installed capacity of 1,877 MW. The details, as many as 672 MW are managed directly and 1,205 MW through joint operations (join operation contract).

PGE Exploration and Development Director Rachmat Hidayat said with a geothermal installed capacity of 1,877 MW, PGE can distribute electricity to around 2,085,000 households or the equivalent of 88,752 BOEPD fossil fuels.

Meanwhile, the Director General of New Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources Dadan Kusdiana said that the development of the geothermal sector is one of the government's superior strategies to achieve the target of reducing greenhouse gas (GHG) emissions according to the "Nationally Determined Contribution" (NDC) and the energy transition to "Net Zero Emissions" (NZE) by 2060.

"Earth lap as one of the new and renewable energies, clean energy and stable supply capacity for decades so it is very suitable to be used as a mainstay of electricity supply because it is reliable," said Dadan.

The government, he continued, has also implemented a number of programs to accelerate the implementation of geothermal through import duty incentives, tax breaks during exploration, an attractive financing mechanism during exploration to a "government drilling" program to reduce risks and "cost projects".

The development of the Geothermal Power Plant (PLTP) project generally takes 7-10 years. However, its development can be accelerated by the existence of a "government drilling".

To meet the 2021-2030 RUPTL where by 2030 the government targets a geothermal installed capacity of 3.35 gigawatts (GW), said Dadan, the government has issued Presidential Decree No. 112 of 2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity.

According to Dadan, the biggest profit from the newly issued Presidential Decree is on geothermal energy, especially on the island of Java. For this reason, the government hopes that much from the release of PGE's initial shares to increase the capacity of geothermal energy installed in the country

"The added value is PGE's expansion in the form of additional capacity. This initial share offer or IPO is one of the efforts to fulfill the RUPTL. If there is no additional installed capacity, the Pertamina Geothermal Energy IPO is also useless," said Dadan.

He said PGE's IPO could also give positive signals for the private sector and investors to invest in the national geothermal sector.

"PGE will be the first and largest geothermal company to take the floor on the Indonesia Stock Exchange. All of the work areas owned by PGE are class one and the minimum risk is also," he said.