Key to Accelerating Energy Transition: Pertamina to Increase Geothermal Power Capacity
Baku, November 13, 2024 – PT Pertamina (Persero) is accelerating the energy transition by developing clean energy sources. Geothermal is one of the most critical energy sources for achieving a sustainable energy transition.
Director General of New Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM), Eniya Listiani Dewi, emphasized that Indonesia remains committed to achieving its Net Zero Emissions (NZE) target. Geothermal energy is crucial as a stable clean energy source to fulfill the nation's electricity needs.
"Indonesia has immense potential, with a strategic position offering more than 23 gigawatts of geothermal potential. Currently, only around 2.5 gigawatts, or approximately 11%, have been utilized," said Eniya during her speech at the panel discussion Energy Transition: Innovations, Sustainability Approaches, Strategic Efforts and Initiatives to Achieve Indonesia's Climate Goals at COP 29, Wednesday (13/11/2024).
Eniya stressed that harnessing geothermal energy could reduce carbon emissions by up to 22 million tons of CO2 by 2030. The government is committed to supporting all stakeholders in domestic geothermal energy development.
"Our President has repeatedly emphasized the importance of geothermal energy, and international support is essential for Indonesia to become the world's leading country in geothermal utilization. We have also simplified licensing regulations and increased the return on investment (IRR) by up to 1.5%," Eniya added.
CEO of PT Pertamina Geothermal Energy Tbk (PGEO), Julfi Hadi, explained that geothermal energy could be a baseload power source. Its stable and abundant supply makes it the key to supporting the government’s target of 8% economic growth.
"Geothermal is a proven energy source that can function as a baseload. We must invest in it now. Especially with the planned economic growth driven by downstream industries and manufacturing, a stable and clean power supply is essential. Geothermal is the answer," said Julfi during the same session.
Julfi stated that PGEO aims to develop Pertamina's geothermal capacity to 1.5 GW by 2030. To achieve this, various strategies, including investment strategies, are being implemented.
"This development requires an investment of up to USD 50 million, with a projected increase in geothermal power capacity to 10.5 GW," Julfi revealed.
To make geothermal investments more attractive, Pertamina has introduced a lower-risk model for geothermal development. One such technology is Electrical Submersible Pumps, which reduces development risks.
"These pumps can increase production, even in sub-commercial wells and power plants. Previously, developing geothermal projects could take ten years; now, it can be done in just five years," Julfi explained.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**