Indonesian Government to Tender 3 Geothermal Energy Projects in October
The government of Indonesia will tender three geothermal energy projects in October 2015. These three projects are the Way Ratai (South Sumatra), Bukit Kili (West Sumatra), and Marana (Central Sulawesi) fields. Indonesia is estimated to contain about 40 percent of the world’s geothermal reserves and therefore entails great potential for this energy source. However, Southeast Asia’s largest economy only utilizes approximately 4.7 percent (1,403 megawatts) of its total geothermal capacity (29,475 megawatts).
In recent years, the Indonesian government has stepped up efforts to tap its geothermal resources. In 2015 and 2016 the government aims to offer a total of 26 geothermal power projects to investors. If successful, this would more than double domestic geothermal power generation.
Earlier this year, the government of Indonesia had tendered the Gunung Lawu (East Java) and Danau Ranau (South Sumatra) geothermal fields. In December 2015, the government is set to announce the winner of the Gunung Lawu field. Several companies, including Pertamina Geothermal Energi, Star Energi, Ormat, Sari Prima Energi, and Bumi Energi are in competition over control of this field.
The Danau Ranau field, on the other hand, only attracted one bidder and therefore the government will repeat the tender process in an attempt to attract more bidders.
For a detailed overview of geothermal energy development in Indonesia (which also covers the bottlenecks and other obstacles that hamper development as well as government efforts to enhance exploration of this energy source), visit this section:
• Overview of Geothermal Energy Development in Indonesia
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