PGE Outlines Strategy to Boost Geothermal Capacity to 3 GW

PT Pertamina Geothermal Energy Tbk (PGEO) has prepared a long-term strategy to achieve a target capacity of 3 GigaWatts (GW) for its Geothermal Power Plants (PLTP). The company is also targeting a gradual capacity increase to reach 1.8 GW by 2033. Director of Exploration and Development at PGE, Edwil Suzandi, stated that the main step being taken is to ensure that the company’s geothermal resource potential can be proven as reserves through exploration activities. “What we are doing today is ensuring that the potential resources owned by PGE are proven to become proven resources,” he said during the Energy Corner programme on CNBC Indonesia. He explained that PGE is currently conducting exploratory drilling in several geothermal working areas, including Gunung Tiga and Kotamobagu. In addition, the company is accelerating preparations for the development of Lumut Balai Unit 4 as part of efforts to maintain the sustainability of future geothermal projects. According to Edwil, Indonesia has enormous geothermal potential, even among the largest in the world. However, the installed capacity that has been utilised so far is still relatively low. “The potential might be the largest in the world, but if we look at the installed capacity, it is not even 20%, only around 11 or 12%. This is a shared commitment, not just for PGE but for all geothermal players,” he said. To pursue this target, PGE is focusing on two main aspects: internal and external factors. Internally, the company is continuously improving the competence of its human resources. “Through the competence of our engineers and experts, we are also calculating how to run projects with more measured and lower costs. We refer to this as reducing capital expenditure, whether from drilling, infrastructure, or power plant construction,” he said. Externally, PGE is actively collaborating with stakeholders through the Indonesian Geothermal Association (API) to accelerate the development of the geothermal industry.