My Indonesia

Energy crisis becomes more evident, and Indonesia is factually seeking for a solution. Indonesia lies on ‘the ring of fire’ of 130 known active volcanoes that make a great potential for the utilizing and handling of geothermal power. Some experts claim Indonesia could run its economy entirely on geothermal energy. In fact that large estimated potential power still have low realization due some obstacles both technically and financially. Indonesia is only tapping 850MW of an estimated 27,000MW potential of geothermal power.

For example is a project in Indonesia, the Bedugul project which is tapping power near volcanoes in Bali. The project is attempting to develop up 175MW of power, which would power somewhere around half of the power needs for the island. The project is however on suspended for the time being due to a possibility of damage to a sacred area and potential negative effects on water supply. Currently, most of Bali’s power comes from another island nearly through a cable running under the sea. This may not be a sufficient supply in the near future as the tourist area shows a growing demand for power.

Some difficulties are affecting other potential new projects in any location. A fairly extensive amount of drilling is involved to drill deep enough in the earth to reach hot water or steam so that turbines can be powered. This of course takes investment and resources. Furthermore, the legal formalities needed to organize and carry out these projects is also hampering progress. Active volcanoes are associated with high acidity, as thus cause the corrosion of pipes involved in geothermal power projects.

Although drilling and plant construction, not to mention exploration, costs are high in comparison to other alternatives, the maintenance and operation costs of a geothermal plant are significantly lower in comparison. Typically it takes 7 to 8 years for a geothermal project to go from an exploration to production stage. Road costs to remote areas are also a factor. Carbon credit eligibility would make investments in these projects more likely, as well as help with some of the initial project cost.

However geothermal is going to emerge large in the energy economy of the future of Indonesia. Therefore Indonesia needs strong leadership that can see the potential of that energy, and realize it in quickly and efficient way.