Indonesian Political, Business & Finance News

Observer urges geothermal power development for long-term clean energy

| Source: ANTARA_ID Translated from Indonesian | Energy
Observer urges geothermal power development for long-term clean energy
Image: ANTARA_ID

Jakarta (ANTARA) - The Managing Director of the Energy Shift Institute (ESI), Putra Adhigulated, is urging the development of geothermal power plants (PLTP) to supply long-term clean energy.

“In the long term, geothermal power remains a viable option. However, geothermal plants must be prepared with a longer lead time,” said Putra when contacted by ANTARA from Jakarta on Saturday.

This statement is in response to hydroelectric power plants (PLTA) in South Sulawesi being impacted by El Niño. The hydrological conditions influenced by the El Niño phenomenon have caused production at the Poso, Bakaru, and Malea hydroelectric plants, as well as several mini-hydro power plants (PLTM), to decline.

According to PLN data, the aggregate capacity of hydro power plants dropped from approximately 850 MW to 250 MW, a reduction of about 600 MW.

Responding to this phenomenon, Putra believes that the implementation of new and renewable energy (EBT) sources to serve as reserves will vary across different regions.

“Wind power (PLTB) will be potential in areas with high wind potential, such as South Sulawesi or East Nusa Tenggara (NTT),” said Putra.

He continued, noting that the use of solar power plants (PLTS) and Battery Energy Storage Systems (BESS) has potential in various regions, particularly in areas with vast land availability.

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that regulations will be revised immediately to provide tax incentives for the development of geothermal power projects.

The two regulations to be revised by Bahlil are Government Regulation (PP) Number 7 of 2017 regarding Geothermal for Indirect Use, and Presidential Regulation (Perpres) Number 112 of 2022 regarding the Acceleration of Renewable Energy Development for Electricity Supply.

Bahlil emphasised that this step aims to accelerate the development of geothermal projects in Indonesia.

On this occasion, he also reaffirmed his commitment to cutting through convoluted regulations, which are considered an obstacle to geothermal power development.

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