• 2 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 9 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 14 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 18 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 22 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 23 hours Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
  • 8 days Kuwait Faces New Oil Leak Near Ras al-Zour
  • 8 days Sonatrach Aims To Reform Algiers Energy Laws
Energy Digital

Energy Digital

Energy Digital is a leading digital media source of news and content for C-level executives focused on business and all aspects of managing the environment.…

More Info

Indonesia’s Geothermal Potential Being Hamstrung by Regional Politics

Indonesia has the potential to become the world's biggest geothermal energy leader, so long as investment is pursued.

Indonesia's geothermal energy is literally bursting from the ground, with the world's highest number of volcanic hot spots. Unfortunately, Southeast Asian politics and a lack of foreign investment is bogging down the great potential of the country's clean energy market. With plans to add as much as 9,000 MW of installed capacity by 2025, the industry will need to attract investors.

"The tenders are out there, they just need the investors to come in," says Paul Brophy, president and chief executive of geothermal consultancy GES. "So far, some 20 to 30 concessions have been issued so there is still lots of room for new companies to come in and develop the resources."

 Unfortunately, the bidding process to lack of infrastructure is holding up investment in addition to a muck of local politics and cultural beliefs. Some Hindu leaders fear that meddling with nature could anger the gods.

Geothermal is one of the most environmental ways to produce energy; it creates almost no carbon dioxide and requires a third less land than solar or wind energy infrastructure. It's also cheaper than coal or gas, and could dramatically boost the growing economy of Indonesia. Although upfront investment can be high, the country needs the power to help it grow.

Chevron is currently the world's largest geothermal power producer with plants in Java and in the Philippines. In addition to other companies like India's Tata Group and General Electric Co., Chevron is putting more money towards the country's geothermal potential, even despite accusations from disheartened locals that the company is cutting down trees in the process.

But the government is still lagging. Companies don't have much public data to work with to assess the best points of exploration and overlapping jurisdictions of project approvals continue to get in the way. A new law that allows outside developers to pursue geothermal projects so long as five percent of their profits goes to the Indonesian government should help bolster foreign interests.

By. Carin Hall of Energy Digital




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News