- The decrease in geothermal power plants or PLTP in the 2021-2030 RUPTL adjusts to the reduced demand for electricity due to the Covid-19 pandemic.
- PLTP is not a priority because it cannot be built quickly, the investment costs are expensive.
- The development of PLTP should continue because the potential is very large in Indonesia.
Capacity power plants power geothermal aka PLTP trimmed down in the preparation of a general plan for the provision of energy electricity (RUPTL) PLN period 2021-2030. In the draft displayed by the Ministry of Energy and Mineral Resources (ESDM) its capacity is only 2,395 megawatts (MW).
This figure is reduced by almost half compared to the RUPTL 2019-2018m which is 4,607 megawatts. director General New Renewable Energy and Energy Conservation (EBTKE) said the discussion on the draft was not final but the addition of PLTP capacity had been determined. “At the extra 2,400 megawatts,” he told Katadata.co.id, Monday (21/6).
Chairman of the Indonesian Geothermal Association (APBI) Priyandaru Effendi said the RUPTL had shown the government’s commitment to pursuing the transition target to clean energy. The figure also adjusts for the decline in electricity demand due to the Covid-19 pandemic. “If conditions improve, we request to maximize the geothermal target in the RUPTL which is reviewed every year,” said Priyandaru this afternoon.
Geothermal can be a source of energy to replace the role of coal-fired steam power plants (PLTU). “To target the energy mix, capacity and reliability must also be considered, not just installed capacity,” he said.
Since 2008, PLTU has dominated generating capacity in Indonesia. As of June 2020, the plant has generated 35,220 MW or 50% of the total capacity. Gas power plants (PLTG) followed with 20,537 MW.
PLTU has so far contributed greatly to carbon dioxide emissions. The government plans to reduce its use. The plan is that in the 2021-2030 RUPTL there will be no additional new projects for coal-fired power plants. This step is in line with President Joko Widodo’s instructions some time ago.
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Geothermal power plant or PLTP. (ANTARA PHOTO/Adeng Bustomi)
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What Triggers PLTP Target Pruning?
Executive Director of the Institute for Essential Service Reform (IESR) Fabby TUmiwa said, currently the government and PLN prioritize power plants that can be built quickly. While PLTP cannot be built quickly, the investment costs are expensive.
The process of developing PLTP involves a long process. In Indonesia, most projects take about 11 to 13 years.
The development flow starts from exploration. It also includes various stages. Then, there are a lot of permissions for developers to complete. “After that, it goes into construction, and so on. So, it will take a long time,” said Fabby.
The emergence of the Covid-19 pandemic inevitably affected the PLTP exploration project. Therefore, the 2021-2030 RUPTL is indeed in accordance with the time requirements of the disrupted projects. “In the next RUPTL it could be increased,” he continued.
At the same time, PLN is reducing costs amidst the Covid-19 pandemic. Because of this, the state stun company prioritizes generators that are competitively priced, even cheaper.
Another trigger for the reduction in geothermal power plants is the high selling price of electricity compared to other generators. “It’s definitely much more expensive than PLTU,” said Energy Watch Executive Director Mamit Setiawan.
So far, the development of geothermal power plants has not been significant. “Unfortunately, the number should have gone up. I think this reduction is contrary to the energy mix target,” he said.
For information, in Presidential Regulation (Perpres) No. 22 of 2017 concerning the general national energy plan or RUEN, the national energy mix target is listed. The figure is at 23% in 2025.
Director of Geothermal at the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Harris previously said that the installed capacity of PLTP currently only reached 2,130.7 MW. In fact, Indonesia is listed as one of the countries with the largest geothermal potential in the world.
Therefore, hard efforts are needed in pursuing the utilization of this large geothermal potential. “The target for the installed capacity of PLTP in 2030 is 4,550 megawatts,” he said.
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Geothermal power plant or PLTP. (BETWEEN PHOTOS/ANIS EFIZUDIN)
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Government Efforts to Increase PLTP Target
The Ministry of Energy and Mineral Resources (ESDM) seeks to increase the use of new and renewable energy or EBT. One of them is by boosting geothermal exploration.
PT Geo Dipa Energi (Persero) is trusted by the government in this exploration assignment. “I hope that with more assignments, geothermal projects in the future will be more competitive,” said Fabby.
It is hoped that this exploration will reduce the price of geothermal power plants, which are currently relatively high. Now, the price is around US$ 10 cents per kilo Watt hour (kWh). “PLN has always wanted to see if the geothermal price could drop below US$ 9 cents, maybe in the range of US$ 7 cents to US$ 8 cents per kwh,” said Fabby.
Ongoing and ongoing geothermal exploration will affect other projects. “There are quite a lot of exploration assignments, maybe more projects will come in the future,” he said. “Looks like there could be more projects after 2025.”
For information, the Ministry of Energy and Mineral Resources plans to conduct geothermal exploration in 20 regions in 2020-2024. The total capacity to be developed will reach 683 MW. Mount Galunggung, West Java has the largest portion of development, which is 110 MW.
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Geothermal power plant or PLTP. (BETWEEN PHOTO/M Agung Rajasa/aww.)
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What is the fate of the next PLTP?
Mamit believes that the reduced target for PLTP will not only have an impact on the government and PLN. Investors in the geothermal industry sector were also hit hard by this policy.
The investment requires substantial funds and capital. On the other hand, the payback is also quite long. “I’m afraid that under these conditions, investment will not run optimally,” said Mamit.
Data from Databoks The following shows the potential of NRE in Indonesia to reach 417 Giga Watt. The government believes that renewable energy will not run out in the next 100 years.
Technological developments will make renewable energy more competitive. “With such a huge potential, I think it should be optimized to achieve the energy mix target,” said Mamit.
PLTP development must continue. The government is also expected to continue to pay attention to its use. “Don’t let it reduce or stop its activities. For me, geothermal is one of our future energies,” said Mamit.
Fabby had the same opinion. This PLTP must be developed continuously. However, do not forget the economic aspect. “If you’re not ready, it’s hard too. PLN, which buys it, will object to the high price,” he said. Currently, efforts are needed to reduce the cost of geothermal energy so that it is cheaper.
Material contributor: Alfida Febrianna (internship)
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