Much potential for geothermal growth in Asia

Michael Richardson, Straits Times 28 Oct 08;

IN THEIR quest for energy security, Indonesia and the Philippines are planning to develop nuclear power to buttress their electricity generating systems.

However, the possibility of accidents and deadly radioactive releases from nuclear power plants - particularly those in countries like Indonesia and the Philippines which are peppered with active volcanoes and subject to earthquakes and tsunamis - worries neighbouring nations. Such plants would be sited on coastlines so they can draw water from the sea for cooling purposes.

Instead of going nuclear with its risks, Indonesia and the Philippines could expand what they are already doing: tapping the virtually limitless heat from deep underground.

The two countries are the world's biggest geothermal electricity producers, after the United States. This form of renewable energy supplies just over 23 per cent of the electricity generated in the Philippines and 5 per cent in Indonesia. Unlike solar and wind, geothermal fields do not stop producing energy at night or when the wind ceases to blow.

Coming from the earth's molten core and from the decay of naturally occurring elements such as uranium and thorium, the heat energy in the uppermost 10km of the planet's crust is vast - 50,000 times greater than the energy content of all known oil and natural gas resources. Among countries with the richest geothermal resources are those that lie atop the so-called Pacific Ring of Fire, a geologic zone encircling the Pacific Ocean. They include the western US, Canada, Mexico, Chile, Peru, Russia, Japan, China, the Philippines, Indonesia and New Zealand.

Globally, hydropower is by far the most important renewable energy source, accounting for 19 per cent of global electricity production. Wind generates just one per cent. Though both geothermal and solar each provide well under 1 per cent now, they have the potential to supply much more.

Indonesia is the world's third biggest producer of geothermal electricity. Yet it supplies barely 1,000 megawatts of an estimated 27,000MW potential from its geothermal resources. It plans to develop new capacity of nearly 7,000MW over the next decade, equivalent to ten nuclear power plants and equal to nearly 30 per cent of its current electricity-generating capacity from all sources. The Philippines, the number two producer, aims to increase its installed geothermal capacity by over 60 per cent by 2013, to just over 3,100MW.

But first impediments in both countries to expanded geothermal investment must be removed. In Indonesia, a presidential decree earlier this month offered tax incentives for expanded production from existing fields and development of new resources. However, political bickering in the Philippines has blocked passage of a renewable energy Bill. In both countries, red-tape, difficulty in gaining access to public and private land for development projects, and disputes over the price offered for geothermal electricity going into state-owned power supply networks has slowed progress. Now the global squeeze on credit and the recent fall in prices of fossil fuel energy sources, are putting additional barriers.

Still, the potential for growth remains promising. According to a recent survey by the Earth Policy Institute in Washington, geothermal energy is being tapped in 24 countries, five of which used it to produce 15 per cent or more of their total electricity. In the first half of this year, world installed geothermal power capacity passed 10,000MW, enough electricity to meet the needs of 60 million people. By 2010, capacity could increase to 13,500MW in 46 countries.

Most geothermal plants in operation around the world tap into underground pockets of high-temperature water or steam to drive steam turbines. These ventures need high capital investment for exploration, drilling and pipeline construction, compared to coal or gas-fired electricity plants. However, operation and maintenance costs are relatively low.

New geothermal technologies enable electricity to be generated at much lower temperatures. They use liquids with lower boiling points than water in heat exchange systems, opening a vast new frontier for geothermal power.

The writer is an energy and security specialist at the Institute of South East Asian Studies.