Analyst sees geothermal as strategic option to maintain electricity reliability

Energy analyst Feiral Rizky Batubara has assessed that geothermal power plants (PLTP) represent a strategic option for maintaining the reliability of the national electricity system, thereby reducing the risk of large-scale power outages or blackouts. “In my view, geothermal can be one of the strategic options to strengthen the resilience of the national electricity system, especially as part of anticipating blackout risks. Its character is stable, it can operate 24 hours a day, it does not depend on the weather, and it can serve as a baseload in the electricity system,” he said in a statement received in Jakarta on Wednesday. According to Feiral, geothermal energy’s ability to operate stably around the clock makes it a potential energy source for reinforcing the reliability of the national electricity supply amidst rising energy demand. “Anticipating blackouts must be seen as a major agenda for system strengthening. Within that framework, geothermal can become one of the key pillars because its potential is spread across many regions in Indonesia,” he said. He explained that Indonesia’s geothermal potential, which is distributed across various regions, provides a significant opportunity to strengthen national energy security. However, geothermal development must proceed in tandem with the strengthening of transmission and distribution networks, increasing power reserves, developing energy storage systems such as Battery Energy Storage Systems (BESS), providing backup generation, digitising the electricity grid, and diversifying energy sources. Indonesia itself has geothermal reserves of 24 gigawatts (GW), or approximately 40 percent of the world’s reserves, making it one of the country’s largest local energy potentials. With its stable, reliable, and abundant characteristics, geothermal is considered to have an important role in supporting efforts to achieve national energy security. Nevertheless, the utilisation of this potential still needs to be increased. Of the total reserves of around 24 GW, only about 2.7 GW, or 12 percent, has been utilised. This means there is still significant room for development, including the pursuit of an additional capacity of around 2.5 GW over the next 10 years. On the other hand, the target in the 2025–2034 Electricity Supply Business Plan (RUPTL) of reaching 5.2 GW is considered quite ambitious, yet remains aligned with the direction of the national energy transition. A gradual development of geothermal capacity is necessary to strengthen the energy mix while maintaining the reliability of the electricity system. Despite its great prospects, Feiral acknowledged that geothermal development still faces a number of challenges. These include the need for large initial investment, issues of economic tariffs, licensing processes, and the readiness of electricity network infrastructure. Therefore, he assessed that stronger policy support is needed, ranging from exploration risk-sharing schemes and the provision of long-term financing to the simplification of licensing and synchronisation between power plant development and national electricity grid planning. “When talking about blackout mitigation, geothermal should be positioned as one option within the national electricity resilience portfolio. The key is not to choose just one technology, but to build an electricity system that is more robust, distributed, flexible, and has adequate reserves,” he said.