by: Tasnim IlmiardhiEnergy Legal Practitioners
The high energy demand has made Indonesia to seriously consider the use of renewable energy. Indonesia continues to develop geothermal potential in the development of alternative energy as a power plant.
The Indonesian government understands that the development of geothermal energy in the future will increase the competitiveness of other power plants. However, the high capital costs and electricity tariffs to be the core problem.
Indonesia remains one of the most attractive countries in the world geothermal, and the Indonesian Government made a new approach in maximizing the potential of geothermal energy.
Geothermal Indonesia would be the largest in the world and ready to replace the presence of oil and gas energy. The potential of geothermal energy in Indonesia amounted to 27,000 megawatts, but so far its use has only reached 1,180 megawatts. In a power plant project 10,000 MW Phase II, targeted to make a contribution amounting to 40% (3,977 MW).
Indonesia, due to its attractive geothermal potential and geothermal expansion opportunities, has started to prepare for investments under the Kyoto Protocol’s Clean Development Mechanism (CDM) and under other unilateral environmental initiatives oriented toward Greenhouse Gas (GHG) reductions. Under these concepts, companies from developed countries can invest or purchase "GHG emission reductions" from renewable energy or energy efficiency projects in developing countries as a way to offset their GHG emissions.
Regulation
Geothermal business is governed by two laws, on the upstream (exploration-exploitation) regulated by the Law Geothermal, whereas in the downstream side is set with the Law Electricity.
Law No.27 of 2003 on Geothermal explains the existence and utilization of geothermal energy. Government through the Ministry of Energy and Mineral Resources (DG Minerpabum) became the regulator for the management of geothermal energy. In this Act, the management of geothermal energy through the Working Area (WKP)
Law No.17 of 2007 about Long-Term Development Plan (RPJP) explicitly states that geothermal energy can be expected to contribute to the national electric energy.
Law No.30 of 2007 on Energy, said that the existence of geothermal as renewable energy, and is a source of national energy management.
This was also confirmed in Law No. 30 of 2009 on Electricity, set out in Chapter V of Article 6 regarding the utilization of primary energy, which includes set the source of electricity is one of them is a renewable primary energy (this is certainly also stipulated in the Law on Energy). Also mentioned that the Ministry of Energy and Resources Mineral Resources (ESDM) as the government is technically responsible for business development of commercial power by the state enterprises, cooperatives or private.
Presidential Regulation No. 5 / 2006 on National Energy Policy up to 2025 states that the Geothermal Energy became one of the new energy that must be developed. It is then translated into the National Energy Blueprint DESDM, that nuclear energy will meet the 6 % of the total national primary energy in 2025.
Geothermal energy is part of the (optimum energy mix) symbiotic and synergistic with fossil and other renewable energy in meeting national energy needs, in accordance with the objectives of national energy policy. The inclusion of geothermal power plants into the national electricity system is the right solution to support the national energy security (energy security).
Presidential Decree No. 4 / 2010 and Ministerial Regulation No. 2 / 2010, which sets the Acceleration Program Development Project 10,000 MW Power Plant Phase II. There are at least 44 geothermal projects are planned to be built.
IPP Consortium
In realizing development projects for geothermal power plants are, other than through the state-owned companies, the Government of Indonesia also works closely with the independent power producer (IPP). The investment required in the 10,000 MW power plant project phase II is estimated to reach U.S. $ 16.435 billion.
Especially for a geothermal power plant requires funding of U.S. $ 9.030 billion, or reaches 55% of the investment needs of 10,000 MW power project phase II.
Consortium of state-owned company PT State Electricity Company (PLN) with Medco Energi International and units of Ormat Technologies' International Ormat, Itochu Corp. and Kyushu Electric Power, to get the project in 2006 to build a plant in Sarulla, North Sumatra, to the capacity of 330 MW. Projects worth $ 1 billion has been maintained in recent years after a consortium to get the revised price.
The consortium has reached an agreement with PLN to change the price of electricity sold to the 6.79 U.S. cents per kilowatt. The parties also agreed that tariffs will be reduced in the future. Expected to sign the financing contracts in one year, after the consortium will have 30 months to complete the first phase of the project with a capacity of 110-120 MW.
This two-phase project, expected to be completed within 18 months from the first phase. Ormat, which develops and operates geothermal power plants, will benefit from more than $ 300 million in supply of equipment for a project that has a 12.75% share.
Still many are realizing consortium geothermal projects in Indonesia, however, not a few who changed partner consortium.
The high energy demand has made Indonesia to seriously consider the use of renewable energy. Indonesia continues to develop geothermal potential in the development of alternative energy as a power plant.
The Indonesian government understands that the development of geothermal energy in the future will increase the competitiveness of other power plants. However, the high capital costs and electricity tariffs to be the core problem.
Indonesia remains one of the most attractive countries in the world geothermal, and the Indonesian Government made a new approach in maximizing the potential of geothermal energy.
Geothermal Indonesia would be the largest in the world and ready to replace the presence of oil and gas energy. The potential of geothermal energy in Indonesia amounted to 27,000 megawatts, but so far its use has only reached 1,180 megawatts. In a power plant project 10,000 MW Phase II, targeted to make a contribution amounting to 40% (3,977 MW).
Indonesia, due to its attractive geothermal potential and geothermal expansion opportunities, has started to prepare for investments under the Kyoto Protocol’s Clean Development Mechanism (CDM) and under other unilateral environmental initiatives oriented toward Greenhouse Gas (GHG) reductions. Under these concepts, companies from developed countries can invest or purchase "GHG emission reductions" from renewable energy or energy efficiency projects in developing countries as a way to offset their GHG emissions.
Regulation
Geothermal business is governed by two laws, on the upstream (exploration-exploitation) regulated by the Law Geothermal, whereas in the downstream side is set with the Law Electricity.
Law No.27 of 2003 on Geothermal explains the existence and utilization of geothermal energy. Government through the Ministry of Energy and Mineral Resources (DG Minerpabum) became the regulator for the management of geothermal energy. In this Act, the management of geothermal energy through the Working Area (WKP)
Law No.17 of 2007 about Long-Term Development Plan (RPJP) explicitly states that geothermal energy can be expected to contribute to the national electric energy.
Law No.30 of 2007 on Energy, said that the existence of geothermal as renewable energy, and is a source of national energy management.
This was also confirmed in Law No. 30 of 2009 on Electricity, set out in Chapter V of Article 6 regarding the utilization of primary energy, which includes set the source of electricity is one of them is a renewable primary energy (this is certainly also stipulated in the Law on Energy). Also mentioned that the Ministry of Energy and Resources Mineral Resources (ESDM) as the government is technically responsible for business development of commercial power by the state enterprises, cooperatives or private.
Presidential Regulation No. 5 / 2006 on National Energy Policy up to 2025 states that the Geothermal Energy became one of the new energy that must be developed. It is then translated into the National Energy Blueprint DESDM, that nuclear energy will meet the 6 % of the total national primary energy in 2025.
Geothermal energy is part of the (optimum energy mix) symbiotic and synergistic with fossil and other renewable energy in meeting national energy needs, in accordance with the objectives of national energy policy. The inclusion of geothermal power plants into the national electricity system is the right solution to support the national energy security (energy security).
Presidential Decree No. 4 / 2010 and Ministerial Regulation No. 2 / 2010, which sets the Acceleration Program Development Project 10,000 MW Power Plant Phase II. There are at least 44 geothermal projects are planned to be built.
IPP Consortium
In realizing development projects for geothermal power plants are, other than through the state-owned companies, the Government of Indonesia also works closely with the independent power producer (IPP). The investment required in the 10,000 MW power plant project phase II is estimated to reach U.S. $ 16.435 billion.
Especially for a geothermal power plant requires funding of U.S. $ 9.030 billion, or reaches 55% of the investment needs of 10,000 MW power project phase II.
Consortium of state-owned company PT State Electricity Company (PLN) with Medco Energi International and units of Ormat Technologies' International Ormat, Itochu Corp. and Kyushu Electric Power, to get the project in 2006 to build a plant in Sarulla, North Sumatra, to the capacity of 330 MW. Projects worth $ 1 billion has been maintained in recent years after a consortium to get the revised price.
The consortium has reached an agreement with PLN to change the price of electricity sold to the 6.79 U.S. cents per kilowatt. The parties also agreed that tariffs will be reduced in the future. Expected to sign the financing contracts in one year, after the consortium will have 30 months to complete the first phase of the project with a capacity of 110-120 MW.
This two-phase project, expected to be completed within 18 months from the first phase. Ormat, which develops and operates geothermal power plants, will benefit from more than $ 300 million in supply of equipment for a project that has a 12.75% share.
Still many are realizing consortium geothermal projects in Indonesia, however, not a few who changed partner consortium.
The Projects
List development of geothermal power plants for 10,000 MW Phase II program
Power Plant by PLN :
1. PLTP Tangkuban Perahu I, Jawa Barat 2x55 MW.
2. PLTP Kamojang 5 & 6, Jawa Barat 1x40 MW & 1x60 MW.
3. PLTP Ijen, Jawa Timur, 2x55 MW.
4. PLTP Lyang Argopuro, Jawa Timur, 1x55 MW
5. PLTP Wilis/Ngebel, Jawa Timur, 3x55 MW.
6. PLTP Sungai Penuh, Jambi, 2x55 MW.
8. PLTP Kotamobagu 1 & 2, Sulawesi Utara, 2x20 MW.
9. PLTP Kotamobagu 3 & 4, Sulawesi Utara, 2x20 MW.
10. PLTP Sembalun, Nusa Tenggara Barat, 2x10 MW.
11. PLTP Tulehu, Maluku, 2x10 MW.
Power Plant by Private :
1. PLTP Rawa Dano, Banten, 1x110 MW.
2. PLTP Cibuni, Jawa Barat, 1x10 MW.
3. PLTP Cisolok-Cisukarame, Jawa Barat, 1x50 MW.
4. PLTP Drajat, Jawa Barat, 2x55 MW.
5. PLTP Karaha Bodas, Jawa Barat, 1x30 MW dan 2x55 MW.
6. PLTP Patuha, Jawa Barat, 3x60 MW.
7. PLTP Salak, Jawa Barat, 1x40 MW
8. PLTP Tampomas, Jawa Barat, 1x45 MW
9. PLTP Tangkuban Perahu II, Jawa Barat, 2x30 MW
10. PLTP Wayang Windu, Jawa Barat, 2x120 MW.
11. PLTP Baturaden, Jawa Tengah, 2x110 MW.
12. PLTP Dieng, Jawa Tengah, 1x55 MW & 1x60 MW.
13. PLTP Guci, Jawa Tengah, 1x55 MW
14. PLTP Ungaran, Jawa Tengah, 1x55 MW
15. PLTP Seulawah Agam, Nanggroe Aceh Darussalam, 1x55 MW
16. PLTP Jaboi, Nanggroe Aceh Darusalam, 1x7 MW
17. PLTP Sarulla 1, Sumatera Utara, 3x110 MW
18. PLTP Sarulla 2, Sumatera Utara, 2x55 MW
19. PLTP Sorik Merapi, Sumatera Utara, 1x55 MW
20. PLTP Muaralaboh, Sumatera Barat, 2x110 MW
21. PLTP Lumut Balai, Sumatera Selatan, 4x55 MW
22. PLTP Rantau Dadap, Sumatera Selatan, 2x110 MW.
23. PLTP Rajabasa, Lampung, 2x110 MW
24. PLTP Ulubelu 3 dan 4, Lampung, 2x55 MW.
25. PLTP Lahendong 5 dan 6, Sulawesi Utara, 2x20 MW.
26. PLTP Bora, Sulawesi Tengah, 1x5 MW
27. PLTP Merana/Masaingi, Sulawesi Tengah, 2x10 MW
28. PLTP Mangolo, Sulawesi Tenggara, 2x5 MW
29. PLTP Huu, Nusa Tenggara Barat, 2x10 MW
30. PLTP Atadei, Nusa Tenggara Timur, 2x2,5 MW.
31. PLTP Sukoria, Nusa Tenggara Timur, 2x2,5 MW.
32. PLTP Jailolo, Maluku Utara, 2x5 MW
33. PLTP Songa Wayaua, Maluku Utara, 1x5 MW
(*)
No comments:
Post a Comment