Indonesian Political, Business & Finance News

Mitigating Blackout Risk: Geothermal Energy as a Strategic Solution for Energy Resilience

| | Source: MEDIA_INDONESIA Translated from Indonesian | Energy
Mitigating Blackout Risk: Geothermal Energy as a Strategic Solution for Energy Resilience
Image: MEDIA_INDONESIA

The risk of large-scale power outages, or blackouts, has become a serious challenge that must be anticipated to maintain the resilience of the national electricity system. Energy analyst Feiral Rizky Batubara revealed that the stability of the electricity supply is crucial due to its broad impact, ranging from daily community activities to the continuity of the industrial sector. According to Feiral, blackouts can be triggered by various complex factors, such as an imbalance between supply and demand, disruptions to physical infrastructure, and the increasing complexity of the energy system as national electricity demand grows. If not mitigated, this instability risks hampering industrial production processes, increasing operational costs, and disrupting the overall supply chain. As a mitigation measure, Feiral proposed strengthening the system through the diversification of energy sources, where geothermal energy plays a strategic role. Unlike other renewable energy sources that depend on the weather, geothermal has a stable and reliable character. “In my opinion, 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, it does not depend on the weather, and it can act as a baseload in the electricity system,” Feiral said when contacted on Tuesday (30/6/2026). Indonesia has significant capital to optimise this sector. Currently, Indonesia controls around 40% of the world’s geothermal reserves. However, its utilisation is still relatively minimal compared to the available potential. Despite its abundant potential, Feiral acknowledged that geothermal development is still overshadowed by a number of classic challenges. Very large initial investment, issues of economic tariffs, complex licensing, and the readiness of network infrastructure are obstacles that need to be immediately resolved. He stressed that the development of geothermal power plants cannot stand alone. Strengthening transmission and distribution networks, increasing power reserves, and integrating supporting technologies such as Battery Energy Storage Systems (BESS) and electricity grid digitalisation are required. “The key is not choosing just one technology, but building an electricity system that is more resilient, distributed, flexible, and has adequate reserves,” he concluded. Policy support in the form of exploration risk-sharing schemes and licensing simplification is expected to accelerate the realisation of ambitious targets in the 2025–2034 Electricity Supply Business Plan (RUPTL) to safeguard national energy sovereignty.

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