Showing posts with label geothermal. Show all posts
Showing posts with label geothermal. Show all posts

Indonesia: Cheap funds needed to develop renewable energy

Andi Abdussalam Antara 7 Oct 17;

Jakarta (ANTARA News) - Indonesia should not harbor concerns over depleting fossil fuel reserves since it is rich in renewables, as the sources of energy in the future, and geothermal is one of the countrys renewable source assets.

Geothermal power in Indonesia is an increasingly significant source of renewable energy, and as a result of its volcanic geology, it is often reported that the country has 40 percent of the worlds potential geothermal resources, which is estimated to be 29 thousand megawatts (MW).

However, Indonesia requires funds to develop its new and renewable sources of energy. The government wants renewable sources to contribute 23 percent of the countrys energy mix by 2025, and the country has pledged to reduce its greenhouse gas emissions by 29 percent by 2030.

In order to facilitate the development of renewable sources of energy, the Energy and Mineral Resources (ESDM) Ministry is encouraging PT Sarana Multi Infrastruktur (SMI), a state-owned infrastructure funding company, to help develop new and renewable energy by disbursing low-interest loans.

At a presentation of a Micro Hydro project for Indonesia in Jakarta on Thursday, Deputy ESDM Minister Arcandra Tahar said the government is looking for cheap funds to develop the potential of new and renewable energy in Indonesia.

"We, at the ministry, are trying to bring in lenders who can offer us a cheap interest rate, and we are looking to source cheap funds, including from the SMI. We encourage the SMI to spend some of its funds for the development of new and renewable energy," he remarked.

Tahar said several financial institutions are offering funding assistance. European lenders are offering an interest rate at below five percent.

Nevertheless, he admitted that until now, none of the offers can be realized, as the government is also making calculations and studying their requirements.

One of the proposed conditions concerns the application of technology whose economic value still needs to be computed by the government, according to the deputy minister.

"The government is still making calculations to evaluate the economic value of the funding interest rate. Sometimes, the technology from the leaders is not always economically appropriate, so it should be calculated first," he pointed out.

Arcandra stressed that the government will continue to bring in lenders offering cheap loans to cater to the need to develop the countrys renewable energy potential.

The ESDM Ministry has also gathered stakeholders several times to work on it.

"The government is doing its best. This is a B-to-B deal. One of the governments instruments is using the SMI. The other instruments are foreign lenders that are able to provide soft loans," he said.

The ESDM Ministry has recorded that the total renewable energy potential in Indonesia reached 441.7 gigawatts (GW).

However, based on data from the Directorate General of Renewable Energy and Energy Conservation of the ESDM, of the 441.7 GW, only two percent, or 8.8 GW, has been generated from the plant installed this year.

Hence, the House of Representatives has supported the governments efforts to continue to develop the countrys new and renewable sources of energy, particularly geothermal, whose reserves in Indonesia are considered to be the largest in the world.

"I invite all of you to set a common goal to spur the development of environment-friendly renewable energy, so that the target to reduce emissions by 29 percent in 2030 can be achieved," said the DPR Agus Hermanto in Jakarta, Friday (Oct 6).

The legislator reminded that to realize the target of 23 percent renewable energy use, the use of renewable energy resources or environment-friendly energy must be increased.

Hermanto, who is a Democratic Party politician, also warned that a new and renewable energy policy had been contained in Presidential Regulation No. 79 of 2014 on the National Energy Policy. It aimed to develop alternative energy sources in lieu of fuel oil, while renewable energy was targeted to reach 23 percent by 2025, he added.

Admittedly, there are many challenges to develop environment-friendly energy for the creation of clean air. The main challenge lies in the certainty of regulation and the economic aspects of developing renewable energy.

In addition to this, it would take bold steps in the form of policy and political will together to encourage the development of clean environment-friendly energy.

In reaching the new and renewable energy target of 23 percent by 2025, the government has devised various strategies. In the geothermal field, for example, the Minister of Energy and Mineral Resources has issued Regulation No. 36 on Preliminary Survey Assignment Procedure (PSP) and Preliminary Survey Assignment and Exploration (PSPE).

Through this introduction and the PSPE Assignment mechanism, the Government may assign the business entity to conduct geological, geochemical, geophysical, and/or integrated evaluation activities up to the drilling of exploration wells to obtain information on geothermal reserve estimates.

The PSPE mechanism will help potential geothermal investors to ensure geothermal reserves gain more comprehensive economic value calculations, mitigate future development risks, and greater opportunities to secure project finance by delivering more bankable data and information.

Several other breakthroughs that have been made to increase geothermal investments include assignments of state-owned enterprises to improve the investments, based on Law No. 21 of 2014 on Geothermal Exploration, Fiscal Incentives, Tax Allowance and Non-Fiscal Incentives.

The government, moreover, also simplifies the procedures of receiving license for the exploration by establishing the One-Stop Integrated Service (PTSP) at the Investment Coordinating Board (BKPM).
(T.A014/INE/KR-BSR/F001)


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Indonesia: Renewable energy potentials reach 441.7 GW - Ministry

Ignasius Jonan Antara 5 Oct 17;

Jakarta (ANTARA News) - The Indonesia Energy and Natural Resources Ministry has recorded renewable sources to generate power of up to 441.7 Gigawatts (GW), a report said here on Wednesday.

The ministrys renewable energy and power conservation directorate general, in its written statement received by Antara in Jakarta, stated that two percent of 441.71 GW, or 8.8 GW, have been generated from the plant installed this year.

In order to support the "green" and sustainable development, the Indonesian government has placed renewable energy as the countrys top project. The government also believed that the green energy would provide affordable electricity for public.

"Our target is that by 2025, all electricity and transportation facilities would be fueled by renewable energy," the Energy and Natural Resources Minister Ignasius Jonan remarked.

In order to reach the goal, the ministry has set some measures, including issuing the Ministerial Regulation No.36 on the Procedure of Initial Survey (PSP) and Exploration (PSPE).

According to the rule, the government could assigned private consultants to conduct some geological, geochemical, and geophysical surveys, as well as run the comprehensive evaluation and launch an exploration in order to receive information on geothermal reserves.

The survey, according to the regulation, would help the investors to calculate the comprehensive economic value, including the risk of the energy reserves.

The calculation remains important to receive a larger investment for the energy exploration project in the future.

Apart from the ministerial regulation, the government has also tasked the state-owned enterprises to improve the investments, in accordance with the Law No.21 Year 2014 on the Tax Allowance and other Non-Fiscal Incentives to the Geothermal Exploration.

The government, moreover, also simplifies the procedures of receiving license for the exploration by establishing the One-Stop Integrated Service (PTSP) at the Investment Coordinating Board (BKPM).

(Reported by Afut Syafril/Uu. KR-GNT/INE/KR-BSR/B003)


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Indonesia: Environmental NGOs write to UNESCO highlighting threat to Leuser Ecosystem from geothermal project

Antara 27 Mar 17;

Banda Aceh (ANTARA News) - An environmental NGO consortium has sent a letter to the United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage over a plan to build a geothermal power plant that could threaten the Leuser Ecosystem.

The Leuser Ecosystem would suffer serious damage if a geothermal power plant were to be built inside the ecosystem area, Panut Hadisiswoyo, director of the Orangutan Information Center (OIC), stated here, Monday.

Apart from the OIC, other NGOs joining the consortium include the Sumatran Orangutan Conservation Programme and the Aceh Natural Forest and Environment (HAKA) Foundation.

The Leuser Ecosystem, located in Aceh and part of North Sumatra, covers over six million acres, including lowland and mountainous rainforests and over 460 thousand acres of carbon-rich peatlands.

The Leuser Ecosystem is the last place on earth where Sumatran orangutans, tigers, elephants, rhinos, and sun bears co-exist in the wild. Countless other biological treasures, including clouded leopards, hornbills, and the biggest flowers in the world can be found in the teeming forests of the Leuser Ecosystem.

Several mega projects planned to be built inside the ecosystem would threaten the existence of the forests in the area, Hadisiswoyo noted.

The UNESCO World Heritage should intervene in the matter to prevent the extinction of the Sumatran tropical forests in Leuser, he remarked.

"We urge the World Heritage to take strategic measures to prevent the implementation of those projects inside the Leuser Ecosystem area, the last existing habitat of orangutans, rhinos, and tigers that coexist there. This area must be protected," he stated.

The planned geothermal power plant will be built inside the core zone of the Leuser Ecosystem.

The Indonesian government has been lobbied by a company that will build the power plant to change the core zone.

Farwiza, chairman of the HAKA Foundation, has expressed concerns, as representatives of the company had held frequent closed-door meetings with the related ministry officials to push the construction of the power plant.

"This mega project will destroy the habitats of several protected and endangered animals. The mega project also holds no relevance to the needs and interests of the Aceh people," he explained.

Ian Singleton, program director of the Sumatra Orangutan Conservation, said the Leuser Ecosystem has the largest tropical rainforest in Southeast Aceh, which is home to orangutans, elephants, rhinos, Sumatran tigers, and other rare species.

"It will be very ironic if a priceless and highly valuable ecosystem, such as Leuser, is lost due to the construction of a power plant," he added.

(Reported by M Haris SA/Uu.F001/INE/KR-BSR)


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Sembawang Hot Spring area to become a park

Linette Lai, Straits Times AsiaOne 28 Feb 17;

There were mixed reactions from visitors to Sembawang Hot Spring when told that the area will be turned into a park as soon as next year.

Some people who have been visiting it for years were cold to the prospect and expressed dismay, while others were warm to the idea of redeveloping the area, which sits in a military camp.

Earlier this month, the National Parks Board (NParks) said on government procurement website GeBiz that it was looking for "multi-disciplinary consultancy services" for the development of a park, which includes the hot spring, along Gambas Avenue.

The new park will occupy around 1ha, Ms Kartini Omar, group director of parks development and Jurong Lake Gardens at NParks, told The Straits Times. "Development of the park will start by end-2017, and is expected to be completed by end-2018."

Apart from design and implementation, the consulting team "will also be required to provide a comprehensive report on the hydrogeological study of the site", she said.

Retired contractor Lim Yok Toh, 76, was one of those who prefer it as it is - tranquil, quiet, rustic and surrounded by nature.

Mr Lim, who visits about once a week, said: "Once you build a park, people will come and bring their children along and then it will be noisy. I prefer it like this - where you can see the trees and hear the birds chirping."

But people like Mr Gui Kim Toon, 74, who see the benefits of development, disagree.

"It would be nice if we had some shelter to protect us from the sun and rain," said Mr Gui, who visits it two to three times a week. "It can also get very messy now - sometimes people wash their clothes here and hang them up to dry."

Regular visitors even padlock their buckets - or in one case, a metal bathtub - to the chain link fence enclosing the spring.

Ms Lee Bee Wah, who is MP for the area, said that the comments she has heard so far are positive.

"Of course, there are people who want to keep the area as it is. I think we can strike a balance between the two - build facilities that help people enjoy the hot springs, like toilets and water basins."

In April last year, Mr Ong Ye Kung - who was then Senior Minister of State for Defence - said that the Defence Ministry will return the land that the hot spring is on to the state.

Senior Minister of State for National Development Desmond Lee has saidthat the area must retain its rustic character if it is developed.


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Indonesia: Jokowi inaugurates Rp 6.18t-worth geothermal power plants

Lita Aruperes The Jakarta Post 27 Dec 16;

President Joko “Jokowi” Widodo inaugurated on Tuesday three geothermal power plant (PLTP) infrastructure projects worth Rp 6.18 trillion (US$532.07 million) belonging to state oil and gas firm Pertamina.

The projects comprise the development of PLTP Lahendong unit 5 and 6 with a capacity of 2 x 20 Megawatts (MW) in Tompaso, North Sulawesi. The construction of the Rp 3.3 trillion-worth projects started on July 5, 2015. The third project is the construction of PLTP Ulubeli unit 3 with a capacity of 1 x 55 MW in Tanggamus, Lampung. The construction of the Rp 2.8 trillion project started in July 5, 2015.

Jokowi said Indonesia had vast geothermal power plant potential, which reached 29,000 MW. “Only 5 percent of the total potential has been utilized, which is still very small. The remaining 95 percent must be utilized. We are targeting to utilize 7,500 MW of our geothermal power plant potentials,” said Jokowi during the inauguration of the new power plants in Manado.

PLTP Lahendong unit 5 was finished on Sept.15, while unit 6 was completed on Dec.9, although the two power plants had been targeted to be completed by December and June 2017, respectively. Targeted to be finished in August, PLTP Ulubelu unit 3 was included in the Tanggamus electricity system on July 26, or one month earlier.

“Pertamina, as the mother company of Pertamina Geothermal Energy [PGE], appreciates all PGE workers who have proven their main competency by completing these projects earlier than scheduled so we can immediately help the government expand electricity services,” said Pertamina president director Dwi Soetjipto. (ebf)


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Indonesia: Rare species under threat as Leuser park’s forest shrinks

Apriadi Gunawan The Jakarta Post 13 Jul 16;

A number of endangered species are under threat as the government plans to convert forests in a national park in Sumatra into a geothermal power plant.

The government has announced a plan to turn 18,000 hectares of protected forests in the Mount Leuser National Park (TNGL) into productive areas to make room for an investor from Turkey that has expressed interest in tapping into the geothermal potential of the area, which has long been part of the Leuser range, a line of ancient, non-volcanic formations.

The park, with its 800,000 ha of land spanning three provinces in northern Sumatra, is home to seven protected animals including the Sumatran Elephant, Sumatran gibbon (siamang), orangutans and tigers.

Orangutan Information Center director Panut Hadisiswoyo said the government should drop the land conversion plan in Kappi, Gayo Lues, Aceh, because the area was still well-preserved and home to the endangered species.

“Kappi is a crucial part of the Leuser ecosystem. If it is taken away, rhinoceros, tigers and elephants in the area will become extinct,” he told The Jakarta Post on Tuesday.

He also questioned whether the government had conducted thorough study on the geothermal potential of the area.

Once dubbed the largest conservation area in Southeast Asia, Leuser park has been encroached upon by illegal plantations and other agricultural activities.

It has also been named a world-heritage tropical rainforest by UNESCO.

In 2014, the government recorded that the park’s preserved area had fallen from 1 million hectares to 838,872 hectares due to legal and illegal land use.

The core preservation area, including Kappi, had been reduced to only 631,542 hectares by this year, down from almost 700,000 hectares in 2009.

Head of the TNGL center Andi Basrul confirmed reports about the land conversion plan in Kappi.

He said that the proposal was currently waiting for approval from the Environment and Forestry Ministry.

“The land conversion is to support President Jokowi’s plan to tap into geothermal potential, although it will harm the conservation area,” Andi told the Post.

However, he said that there had not been any formal agreement with the Turkish investor as the government was still assessing the plan.

Andi argued that the park’s land allocation for productive purposes was largely flawed, pushing the authorities to destroy an increasing amount of forest areas.

“All [productive areas] have been damaged,” he said, citing Ketambe, Lawe Alas in Southeast Aceh as some of the damaged areas.

The authorities’ lack of commitment to protecting the areas is often cited as the cause of the degrading condition of the national park.

A group that has united as Gerakan Rakyat Menggugat (GeRAM) is raising awareness of the need to protect the Leuser park in Aceh through an online petition.

Posted on change.org in February, the petition calls on President Joko “Jokowi” Widodo to protect one of the richest expanses of tropical rainforest in Southeast Asia.

Award-winning actor Leonardo DiCaprio has also promoted the petition through social media following his visit to TNGL in late March.

The petition is just one of GeRAM’s efforts to urge the government to revise an Islamic bylaw on spatial planning that does not include KEL among the protected forests and national strategic areas in its land-use plan.

The group filed a class action lawsuit in January against Home Minister Tjahjo Kumolo, Aceh Governor Zaini Abdullah and Aceh Legislative Council Speaker Muharuddin at the Central Jakarta District Court.


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Indonesia to Start Work on World’s Biggest Geothermal Plant in June

Fathiyah Dahrul and Fergus Jensen Jakarta Globe 29 May 14;

Jakarta. Indonesia will begin construction next month of its long-delayed $1.6-billion Sarulla project, the world’s biggest geothermal power plant, the country’s chief economic minister said on Wednesday.

Southeast Asia’s largest economy, home to the world’s largest geothermal resources, is racing to meet power demand growth of more than 7 percent a year, with plans to add 60 gigawatts of capacity to its existing grid by 2022.

But the sector has struggled to attract investment because of complex regulations and difficulties securing project finance. A government plan to derive 12 percent of the country’s energy mix from geothermal power by 2025 seems unrealistic.

“The Sarulla groundbreaking will be very soon,” Coordinating Economic Minister Chairul Tanjung told reporters, adding that the project had reached financial closing and the government expected construction to begin next month.

He declined to give further details.

The project was originally initiated in 1990 but ground to a halt during the Asian financial crisis in 1997. Its first phase is expected to begin operation in 2016, with the next two phases to follow within 18 months of the first phase.

The 330-MW Sarulla project is envisioned to provide clean power to an Indonesian grid dominated by fossil-fuel energy. Sarulla is expected to reduce 1.3 million tonnes of carbon dioxide emissions a year when completed in 2018.

The financing of the project has been heralded as a breakthrough for Indonesia’s largely undeveloped 29 gigawatts of geothermal potential.

The banks involved in the financing are the Japan Bank for International Cooperation (JBIC) and the Asian Development Bank (ADB) along with Bank of Tokyo-Mitsubishi UFJ Ltd, ING Bank NV (a unit of ING Groep NV ), Societe Generale, Sumitomo Mitsui Banking Corportation, Mizuho Bank Ltd and National Australia Bank.

The project is sponsored by Itochu Corporation (25 percent), Kyushu Electric Power Company (25 percent), Medco Power Indonesia (37.5 percent), a unit of Medco Energi Internasional and Ormat International, a unit of Ormat Technologies (12.5 percent).

The Sarulla plant’s recent financial close makes it Indonesia’s first geothermal project to gain financing since Star Energy’s 227-MW Wayang Windu plant commenced in 1997.


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Malaysia: Tawau Hills Park trees to be replaced by geothermal plant

Ruben Sario The Star 25 Sep 13;

KOTA KINABALU: Logging has been allowed at 150ha of the pristine Tawau Hills Park, which is about the size of Penang island, to make way for the nation’s first geothermal power plant.

Sabah Forestry Department director Datuk Sam Mannan said the clearing and extraction of 1,639 logs was for the project site located in Sabah’s east coast.

They were also meant for the drilling of seven thermal wells in the area, he added.

He said that the logs were also extracted for the construction of roads and laying of pipes involving an area of some 40km.

However, he said that the logs had been sold at a loss as the extraction cost was RM475 per cubic metre while they were sold for just RM420 per cubic metre.

“Timber prices are at a historical low since 2002,” Mannan said in responding to Sabah DAP’s claims of illegal logging operations at the geothermal power plant project site.

Mannan said that the state had received some RM340,000 in royalties from the timber extracted from the area.

Claims that logging at the park area was illegal and for profit were thus baseless and causing unnecessary public alarm, he said.

He said that Tawau forestry officers had carried out a thorough investigation on claims of illegal logging at the 27,972ha park, that serves as the main water catchment area for Tawau and nearby Semporna.

“The only source of logs from the Tawau Hills Park was the site which had been cleared for the RM500mil geothermal plant project,” he was quoted as saying in a local daily.

The 30mW geothermal plant is being built by Tawau Green Energy Sdn Bhd, which signed a 21-year power supply deal with Sabah Electrictity Sdn Bhd last year.

Tawau Hills Park was established in 1979 and has seven major rivers flowing through it.

The highest points in the conservation area are the 1,319m Gunung Magdelena and the 1,201m Gunung Lucia.


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Indonesia to Concentrate on Renewable Energy Ahead of Nuclear Option

Jakarta Globe 30 Mar 11;

The government says it will maximize the use of new and renewable energy — especially geothermal, hydro-energy and bio fuels — before deciding to use nuclear energy.

Luluk Sumiarso, the director general of renewable energy at the Energy Ministry, said on Tuesday that the nuclear energy was the last option.

“But being the last option does not mean that nuclear is not being prepared. [The ministry] will continue to prepare it, but we are now maximizing the use of new and renewable energy, such as geothermal, hydro-energy and bio fuels, which have the potential for development,” Luluk said.

He said the plan to build nuclear power plants would go ahead.

“But the use of nuclear energy needs a political decision,” Luluk said, adding that the case of nuclear power plant in Fukushima, Japan, would be a lesson for Indonesia.

He said the government was revising its quotas of new and renewable energy utilization in the energy mix from the previously targeted at 17 percent to be 25 percent in 2025.

“The revision of the energy mix is made by including nuclear and non nuclear,” Luluk said.

He said the government would also make every effort to speed up the utilization of the new and renewable energy.

Therefore the government is currently carrying out the construction of the second phase 10,000 MW power plant with most of its energy will come from geothermal and hydro-power, he said.

It is the target of the government that the geothermal capacity will increase by 2,000 MW in 2012 and rises to 5,000 MW in 2014 because the the country’s geothermal potential is 29,000 MW.

Luluk said that aside from geothermal energy, his party would also review the development of bio-fuels.

Antara

Geothermal less risky than nuclear
Antara 30 Mar 11;

Jakarta (ANTARA News) - The use of geothermal energy poses fewer risks than nuclear power, a number of activists said here on Wednesday.

Muhammad Ridho, one of the activists grouped in the Care Unit Geothermal Power Plant, said at an Indonesian Renovation Forum that geothermal energy potential should be prioritized because it is less risky than nuclear energy.

He said Indonesia had the largest source of geothermal energy in the world that serves as a potential strategy for non-military national defense.

"The risk in the utilization of geothermal energy is less than that of nuclear power, and geothermal pressure control can reduce and inhibit the occurrence of volcanic eruption," he said.

For the sake of security and national interests and welfare of the people, Muhammad Ridho said the state should wisely control the geothermal energy to ensure continuous availability of power supply.

Therefore he added that the government and the House of Representatives should continue to encourage the regions with geothermal energy to form regionally owned enterprises.

"Indonesia`s geothermal energy potential which is the largest in the world should serve as a golden opportunity to become the `Center of Excellence` in the field of energy," he said.
(Uu.O001/HAJM)

Editor: Priyambodo RH


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Al Gore Praises Yudhoyono, Cites Indonesia's Geothermal Potential

Fidelis E. Satriastanti Jakarta Post 9 Jan 11;

Jakarta. Nobel laureate and former US Vice President Al Gore on Sunday thanked Indonesian President Susilo Bambang Yudhoyono for his vision, courage and leadership on climate change issues.

"I would like to say a special word of thanks to the president of Indonesia, President Yudhoyono, because of his courage and vision and leadership on the issue that we are here to discuss and work on," Gore said in his 15-minute speech addressed to some 350 participants of the three-day Climate Project Asia-Pacific Summit, which kicked off on Saturday. .

"He spoke out at a time when no other leader of a G-77 nation was willing to stand up and take the initiative and break the mold, thus breaking a longstanding deadlock that had frustrated progress in some areas that are now amenable to some progress.

"I respect him bravely and admire his leadership and I know that the historic pledge that he made on the eve of Copenhagen is going to continue to bring great things to the world and to Indonesia," he said.

Gore also noted the country's high potential for geothermal power.

“Indonesia, just to pick one example, is already the third largest producer of geothermal electricity,” he said.

“Scientists and engineers are now saying confidently that certain forms of enhanced geothermal electricity production may represent one of the largest resources of carbon-free electricity available in the world today.

"And Indonesia could be a super power of geothermal electricity. With the new regional super grids that are being proposed on every continent, it can be a significant advance for Indonesia's economy."

Furthermore, Gore added that the solution for climate issues involves many steps that can save money and reduce green house gases emissions.

Gore added that Indonesia's profile “is unique because it is heavily dominated by emissions from peat forests.”

He explained that the amount of carbon contained underneath the peat forests are enormous that the burning of these peat forests greatly exceed industrial emissions from big economies that burn coal, oil and natural gas.

"There is a great opportunity to take a sustainable approach that preserves these forests, avoids the emissions and earns income that can improve the economy of Indonesia.

“More efficient use of the land both increases economic value and reduces the emissions of global warming pollution.

“There are high impact mitigation efforts, such as stopping the use of fires for land clearing and rehabilitation of previously opened peatlands, which recognize the long-term economic value that greatly outweighs the benefits from continuing unsustainable and high greenhouse-gas emitting activities."


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Geoengineering the Planet - What is At Stake for Africa?

Diana Bronson AllAfrica.com 7 Oct 10;

Geoengineering is playing an increasingly more prominent role in northern-led approaches to tackling climate change, writes Diana Bronson, with proponents dismissively oblivious to the social and environmental consequences for populations around the world.

While geoengineering - the intentional large-scale modification of the earth's systems, including systems related to climate - may sound like science fiction, it is in fact an increasingly hot topic in climate change policy circles of industrialised countries. Less frequently discussed are the impacts this emerging policy orientation - and the technologies if they were ever deployed - will have on Africa.

With the publication of the UK Royal Society's report last year,[1] meetings organised by the National Academy of Sciences, parliamentary and congressional hearings on the topic in the UK and the US,[2] millions of dollars flowing in research funds from both well-known billionaires (such as Bill Gates, formerly of Microsoft, and Richard Branson of Virgin Airlines)[3] and new programmes on their way,[4] it is time for civil society actors and governments in the rest of the world to take notice. In fact, an international, transparent, democratic debate on these strategies and technologies is long overdue.

Changing the climate, as is obvious by the unintentional damage already inflicted on this overstretched planet, is not something that will respect national borders. Geoengineers (scientists, entrepreneurs and policy advocates) have a number of technologies they propose to study, experiment and eventually use. They fall into three broad categories:

1. The first set of geoengineering strategies is known as solar radiation management (SRM). These proposals aim to reduce the amount of sunlight reaching the planet by reflecting more of it back to space, therefore reducing atmospheric warming. This is known as increasing the Earth's albedo. SRM proposals include shooting massive amounts of sulphur dioxide or aluminium aerosols or engineered nanoparticles into the stratosphere, making clouds whiter by spraying seawater at them, covering deserts with plastic, painting mountaintops white or creating a layer of foaming bubbles on the surface of the ocean.

2. The second set of technologies is composed of attempts to draw mega-tonnes of greenhouse gases out of the atmosphere and lock them up either biologically or mechanically. Examples include dumping iron (or urea) into the sea in order to 'fertilise' areas that are poor in nutrients, thereby stimulating the growth of tiny phytoplankton, which will theoretically sequester C02 from the atmosphere in the bottom of the sea. This has never actually worked. Also in this camp are suggestions to change the chemistry of the ocean to improve C02 absorption (known as enhanced weathering), artificial trees or carbon-sucking machines and appropriating and burning forest and crop residues into a charcoal that is subsequently buried for carbon sequestration (called biochar).

3. A third set of geoengineering proposals dispense with controlling the climate and attempt instead to directly control weather - intervening to reduce or redirect hurricanes or seeding clouds for rainfall in drying regions. Such technologies are widely practiced (150 incidents in 40 countries according to one report)[5] and are often connected to military objectives and institutions, being used most famously by the US to impede enemy troop movements during the Vietnam war. Often discussions of geoengineering omit weather modification, but as historian James Fleming has convincingly shown in his book 'Fixing the Sky', the historical and philosophical roots of contemporary geoengineering proposals are found in much older attempts to control the weather.

All of these proposals will have social and environmental impacts that will be felt far away from where the decisions to deploy would be taken. In fact, as the scientific discussion gets more elaborate, and geoengineering gains credibility in Washington and London as climate 'plan b', the whole question of how such technologies could be internationally governed emerges. Increasingly, geoengineering advocates are dismissing the multilateral approach where all countries have a seat at the table and are speaking of 'bottom-up' or 'soft-law' or 'voluntary guidelines' as a stand-in for binding international law.[6] Seemingly oblivious to the fact that industrialised countries have sabotaged every sensible multilateral approach to climate change, they are now saying that more informal governance arrangements are required. Perhaps global governance by the OECD (Organisation for Economic Co-operation and Development), the G20 or the Major Economies Forum? Or simply a coalition of the willing - anything but the United Nations, where all countries have a seat at the table.

STRATOSPHERIC AEROSOLS ... AND IMPACTS ON THE GROUND

One of the most talked about 'solar radiation management' technologies involves shooting tiny particles of sulphur dioxide or aluminium into the upper layer of the atmosphere known as the stratosphere (up to about 50km from earth). This essentially imitates large and powerful volcanoes by spreading dust, so that more sun gets reflected back to space than would naturally be the case, thereby creating a cooling effect without in any way reducing the amount of greenhouse gases in the atmosphere.

This artificial cooling is treating the symptom rather than the cause of global warming and is liable to entail many negative side effects. No one really knows exactly what those effects will be because computer models are notoriously simplistic and cannot accurately predict how a complex climate system will react to attempts to engineer it. Nor do even the best scientists really understand how the climate system works. Nevertheless, one effect that does show up on several computer simulations as well as historical record (after Mount Pinatubo erupted in 1991) is less precipitation and more disturbances in the African and Indian monsoons. Needless to say, this would cause a massive disruption in agricultural production, potentially threatening the food supplies of up to 2 billion people.[7] Other negative impacts of this technology could include whiter skies, damage to the ozone layer, less effective solar energy, obstruction of astronomy, continuing ocean acidification and a host of unknown other ecosystem disturbances. Finally, if the injections needed to be stopped, very quick and very dangerous warming would occur without any time for human or ecosystem adaptation.[8]

This is also one of the most centralised of the technologies, and is arguably very cheap to execute and quick to cause an impact. Military institutions and contractors would certainly be used to develop the hardware (Boeing, for instance, is already working on this). A single state, a small coalition of countries, a corporation, or even an individual could execute such a plan for a relatively modest sum. Furthermore, who would decide at what temperature the earth's thermostat should be set? Who would control the size of the particles to be used? And who would have the power to cancel such an experiment should its effects be worse than anticipated? Wars are fought over much less.

Finally, there is no 'field' where the 'stratospheric option' can be tested - we have but one planet earth. While one very small-scale test has already been done in Russia,[9] it could not actually prove anything about how aerosols would act if deployed at the massive scale that would be required in order to affect the climate. As Alan Robock and his colleagues have written:

'... geoengineering cannot be tested without full-scale implementation. The initial production of aerosol droplets can be tested on a small scale, but how they will grow in size (which determines the injection rate needed to produce a particular cooling) can only be tested by injection into an existing aerosol cloud, which cannot be confined to one location. Furthermore, weather and climate variability preclude observation of the climate response without a large, decade-long forcing. Such full-scale implementation could disrupt food production on large scale.'[10]

BIOCHAR OR CHARCOAL FOR THE EARTH

Biochar is without a doubt the geoengineering technology that already sees Africa as its preferred testing ground. Unused agricultural 'waste', or crops and wood from trees grown for this purpose, are burnt under low-oxygen conditions in a process known as pyrolisis (a type of gasification) and then added to the soil where they remain stored allegedly for 'hundreds to thousands of years'.[11] In addition to supposedly safely sequestering carbon, the process delivers bioenergy as a by-product that can replace some fossil fuel uses. Already, biochar projects are underway in Burkina Faso, Cameroon, Côte d'Ivoire, Democratic Republic of Congo, Egypt, Gambia, Ghana, Kenya, Mali, Namibia, Niger, Senegal, South Africa, Tanzania, Uganda and Zambia.[12]

There is a huge amount of hype about biochar, and people who are desperate for solutions can be surprisingly credulous. Consider this interview with Laurens Rademaker from the Biochar Fund, a 'social profit' that is 'cash-flow positive' offering 'investment opportunities':

'The benefits to these farmers are instant and very significant. With biochar, they can jump from being undernourished to well-fed, and from subsistence farmer to a peasant that can sell some surplus--after only one or two harvests.'[13]

None of this has been scientifically proven and most of it is profoundly illogical. In fact, no reliable studies on the long-term impact of biochar on soils have been done. Sometimes parallels are drawn with the ancient Amazonian practice of terra preta, but they have more to do with public relations than science. We do not know for example how different feedstocks affect biochar's chemical and physical properties; or about its long-term stability in the soil; and then the social and economic constraints and impacts have barely been thought about.[14] UNEP (United Nations Environment Programme) advises that biochar plantations should be treated with great caution and that the impacts on long-term agricultural sustainability and biodiversity are unknown.[15] But this does not stop the carbon profiteers and charlatans from promoting it: in fact ConocoPhilipps Canada, which is involved in Alberta tar-sands production, is actively working to get biochar accredited in international carbon markets![16] It is what Eduardo Galeano would call upside-down: dirty oil that digs up long-buried carbon as fossil fuels and then buys carbon credits by burning up living carbon in Africa using a technology that is highly contested, but that markets itself as a solution.

The other main problem with biochar is the huge amount of land that would be required for its industrial production - hundreds of millions of hectares. If every last stalk and twig is grabbed to be burnt and buried, biodiversity would be undermined, soil nutrients would be robbed and people (especially those with insecure land tenure) would be forced off their land. Diverse and carbon-rich ecosystems would be further disturbed and commercialised as every last bit of nature is subjected to carbon markets that work in favour of those who design the rules and control the capital - and allow the overproduction and overconsumption of the industrialised North to continue unabated.[17]

2010 is the International Year of Biodiversity and it is also a year of critical decisions on these planet-altering schemes. The Convention on Biological Diversity (CBD) will hold its biannual Conference of Parties (a meeting of environment ministers from 193 countries) in Nagoya, Japan, in October 2010. That meeting will take stock of the crisis of biodiversity with species extinction, deforestation, overfishing and the energy and climate crises fighting for space on its agenda. Some voices at that meeting will seek to protect biodiversity from the ravages of overconsumption, monocultures, fossil fuel addiction and rampant urbanisation. Others will promote growth, market mechanisms and techno-fixes above all other considerations, blindly commodifying every last bit of air, land and sea. This latter group are liable to see geoengineering the earth as an option to be considered, rather than a dangerous practice to be stopped.

At the meeting of the CBD's Scientific Body on Technical and Technological Advice (SBSTTA), which met in Nairobi in May 2010, a moratorium on geoengineering activities was proposed: '[N]o climate-related geo-engineering activities [are to] take place until there is an adequate scientific basis on which to justify such activities and appropriate consideration of the associated risks for the environment and biodiversity and associated social, economic and cultural impacts.' This resolution alone will not be enough to stop the scientific hubris and political arrogance behind geoengineering, but it would at least stop the most aggressive entrepreneurs from being able to conduct experiments while the majority of the world's peoples and governments have only just begun to learn what these technologies are. It is vital that African countries and other members of the G77 and China stand firm on this moratorium and put the policy emphasis back where it belongs: on the responsibilities of the wealthy countries who caused the problem of climate change in the first place.

The CBD adopted a moratorium on ocean fertilisation back in 2008 and it has been largely successful, despite the Lohafex experiment which sailed off South African shores in early 2009.[18] Since then, the science on ocean fertilisation has overwhelmingly discredited the practice, with well-known oceanographers urging us all that 'it is time to move on.'[19] We must build on this precedent and ensure that no geoengineering experiments be allowed to take place on land, in the seas or in space. A civil society campaign calling for precisely such a moratorium on geoengineering experiments was launched earlier this year at the World Summit on Climate Change and the Rights of Mother Earth, hosted by the Bolivian government. It is called Hands Off Mother Earth, or HOME.

You can join the movement by sending your photograph - with your hand up to signal your opposition - a message of support to photo@handsoffmotherearth.org.

* Diana Bronson is a member of ETC Group.


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Indonesian Vice President: geothermal energy prioritized in Java

Antara 3 Sep 10;

Jakarta (ANTARA News) - The use of geothermal energy in the second stage 10,000 MW project will be prioritized in Java Island, Vice President Boediono said.

"I wish that the 10,000 MW project stopped using coal, especially in Java island," he said in Jakarta, Friday.

Speaking to the media after breaking the fast at his official residence, Boediono said coal in Java island will be replaced by gas or geothermal energy.

"Places other than Java may continue using coal, but it is also still being considered and planned," he said.

Earlier, Coordinating Minister for Economy Hatta Rajasa said the second-stage 10,000 MW project will be based on geothermal energy.

Along with the Vice President and the relevant ministers, Hatta will formulate and seek a solution to problems facing electricity.

"If a regulation is necessary, we will make it, and if a law is needed, we will discuss it with the House of Representatives," he said.

Indonesia`s geothermal potential was said to be the biggest in the world, reaching 28,112 megawatts (MW).

Of these figures, the biggest geothermal reserve is 14,707 MW, with a power capacity of 14,405 MW. But only four percent, or 1,189 MW in 265 locations is utilized by Indonesia for four percent of electric energy, or 1,189 MW, whereas actually the utilization of fiver percent of this energy or 9,500 MW by 2025 had already been proclaimed.

Besides touching on the 10,000 MW program, the Vice President also mentioned several things the government is doing like anticipating the fluctuation of crude oil prices, poverty eradication, and bureaucratic reforms.

"On this occasion, I wish to say that actually we have done many things and many other things need to be done," he said.

But he added that in several programs progress had been rather slow, or results are expected in the long run.(*)


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U.S. Eyes Geothermal For Exim Bank's $1 Bln Indonesia Credit

Sunanda Creagh PlanetArk 13 Jul 10;

Part of a $1 billion credit facility backed by the Export-Import Bank of the United States (Exim Bank) for Indonesia should be used to help develop clean energy projects such as geothermal power, a senior U.S. official said on Monday.

The U.S. Exim Bank announced in late June it had pre-approved 11 Indonesian banks to receive funds under the scheme, which aims to make credit available to public and private sector businesses under low or fixed-interest rates.

"Indonesia must continue on its growth path and if it does, business as usual is not a viable option," Walter North, mission director for USAID in Indonesia, told a Jakarta conference of clean energy developers and investors.

"The US Export Import bank, for example, is going to provide financial support of over $1 billion for credit facilities in Indonesia, including for geothermal."

He told Reuters the fund was meant to boost U.S. investment in Southeast Asia's largest economy and that he would like to see geothermal project developers take advantage of the credit facility.

"My sense is that it was an eligible use and one we would like to see used to extent possible," he said.

Indonesia and the U.S. in April signed a new agreement broadening the types of protection offered to U.S. overseas investors by the Overseas Private Investment Corp (OPIC), which insures against certain risks, including political risk.

U.S. companies currently have $18 billion worth of investment in Indonesia, which boasts the potential to produce an estimated 27,000 megawatts of electricity from geothermal sources.

U.S. energy major Chevron Corp is among firms that have bid for a geothermal power project in Indonesia, as the country seeks to boost erratic power supply and cut its greenhouse gas emissions.

However, geothermal energy production is expensive and struggles to compete in Indonesia, where fossil fuels are heavily subsidized.

(Editing by Neil Chatterjee)


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Indonesia to take lead on geothermal energy: president

Yahoo News 26 Apr 10;

NUSA DUA, Indonesia (AFP) – President Susilo Bambang Yudhoyono pledged Monday to make Indonesia the world's biggest user of clean, renewable geothermal energy, and urged private investors to back him.

The archipelago of 234 million people and more than 200 volcanoes is estimated to possess around 40 percent of the world's geothermal energy potential, or around 28,000 megawatts (MW).

It already has plans to double its geothermal energy output but analysts say the high costs associated with converting underground heat into electricity is an obstacle to investment.

"After the United States with close to 4,000 megawatts and the Philippines utilising approximately 2,000 megawatts, Indonesia is currently only using 1,100 megawatts" of geothermal energy, Yudhoyono told a conference in Bali.

"It is my intention that Indonesia will become the largest user of geothermal energy... We envision that by 2025, about five percent of our national energy needs will be met through the use of geothermal energy."

Within five years Indonesia aims to add 4,000 MW to its geothermal capacity, and by 2025 it would generate a total of 9,000 MW from underground heat sources including volcanoes.

"We urgently need to accelerate geothermal development in our country. But this is a task that the government alone cannot carry out. We need the help of all stakeholders," the president told the World Geothermal Congress.

He said 8.6 billion dollars worth of projects already under way would eventually produce only some 2,885 MW of power, indicating the scale of the investments required to meet the 2025 target.

Geothermal energy is far cleaner than burning of fossil fuels such as coal, one of the main contributors to greenhouse gases blamed for global warming.

Yudhoyono said geothermal and other clean energies would help the country cut greenhouse gas emissions by 26 percent over 2005 levels by 2026 -- making a "considerable contribution to climate stability".

"This effort, of course, is part of a larger package of mitigation and adaptation measures that are necessary to successfully manage the reality of climate change," he told delegates.

"Everything that can reduce carbon emissions must be brought into play."

Coal and oil are by far the biggest sources of Indonesia's growing energy needs, reportedly accounting for almost 70 percent, followed by natural gas and hydropower on about 18 percent each.

Geothermal contributes only three percent to state-run energy company Perusahaan Listrik Negara's power capacity.

Indonesia is one of the fastest growing economies in the world but currently only 65 percent of Indonesians have access to electricity. The goal is to reach 90 percent of the population by the end of the decade.

The fourth World Geothermal Congress opened Sunday on the resort island of Bali and is expected to attract some 2,000 people from more than 80 countries over six days.

Indonesia hopes to generate hundreds of millions of dollars in new investment from the event, officials have said.

Yudhoyono said state-owned companies would account for half the investment required to meet the government's targets, with the remainder coming from the private sector.

"Already we have seen contributions from Chevron, Star Energy and Medco, and we hope to see more experienced international companies take up this challenge," he said.

Geothermal backers welcomed the recent completion of negotiations between a consortium of US, Japanese and Indonesian companies and the state electricity company over the 340 MW Sarulla project on Sumatra island.

Several firms such as Tata and Chevron have submitted bids to build another geothermal plant in North Sumatra, with potential for 200 MW.

Geothermal energy summit in Bali
Karishma Vaswani, BBC News 26 Apr 10;

Indonesia is hosting what is being called the world's biggest geothermal energy conference.

The congress in Bali is an attempt to look at how to better develop geothermal power as an environmentally friendly fuel for the future.

Geothermal power is energy extracted from the heat stored in the Earth, and environmentalists say it could be the key to using cleaner forms of fuel.

Representatives from 80 countries are attending the talks.

Expensive endeavour

It is often dubbed volcano power but the correct scientific explanation for geothermal energy is power extracted from the heat stored in the Earth's core.

Indonesia has ambitious plans to tap geothermal power and in particular the energy created by its volcanoes.

The archipelago of more than 17,000 islands sits on the Pacific "Ring of Fire" - one of the most active regions in the world for volcanic activity.

Indonesia does not have the resources to be able to provide a consistent supply of electricity to all of its population, so finding an alternative source of energy is critical for south-east Asia's largest economy as it rapidly expands.

This will be one of the major talking points at the world geothermal congress in Bali this week.

Scientists say that in theory the planet's geothermal power is enough to supply mankind's energy needs and could certainly help to solve Indonesia's fuel problems.

But the issue is cost. While environmentally friendly, the harnessing of geothermal power is also a very expensive endeavour.

Indonesia currently uses mostly coal as a source of power, which is cheap but is also considered harmful to the environment.

It is thought that a geothermal plant could cost about twice as much as a coal one and take many more years to build.

It is being reported that Indonesia is keen to raise more than $1bn (£650m) in investment as a result of this conference so that it can develop geothermal energy as a source of power for its future.


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Indonesia aims to tap volcano power

Alvin Darlanika Soedarjo Yahoo News 24 Apr 10;

KAMOJANG, Indonesia (AFP) – Indonesia has launched an ambitious plan to tap the vast power of its volcanoes and become a world leader in geothermal energy, while trimming greenhouse gas emissions.

The sprawling archipelago of 17,000 islands stretching from the Indian to the Pacific Oceans contains hundreds of volcanoes, estimated to hold around 40 percent of the world's geothermal energy potential.

But so far only a tiny fraction of that potential has been unlocked, so the government is seeking help from private investors, the World Bank and partners like Japan and the United States to exploit the power hidden deep underground.

"The government's aim to add 4,000 megawatts of geothermal capacity from the existing 1,189 megawatts by 2014 is truly challenging," Indonesian Geothermal Association chief Surya Darma said.

One of the biggest obstacles is the cost. Indonesia currently relies on dirty coal-fired power plants using locally produced coal. A geothermal plant costs about twice as much, and can take many more years in research and development to get online.

But once established, geothermal plants like the one built in Kamojang, Java, in 1982 can convert the endless free supplies of volcanic heat into electricity with much lower overheads -- and less pollution -- than coal.

This is the pay-off the government is hoping to sell at the fourth World Geothermal Congress opening Sunday on the Indonesian resort island of Bali. The six-day event will attract some 2,000 people from more than 80 countries.

"An investment of 12 billion dollars is needed to add 4,000 MW capacity," energy analyst Herman Darnel Ibrahim said, putting into context the recent announcement of 400 million dollars in financing from lenders including the World Bank and the Asian Development Bank (ADB).

"Field exploration can take from three to five years, suitability studies for funding takes a year, while building the plant itself takes three years," he added.

If there is any country in the world where geothermal makes sense it is Indonesia. Yet despite its natural advantages, it lags behind the United States and the Philippines in geothermal energy production.

Southeast Asia's largest economy and the world's third biggest greenhouse gas emitter exploits only seven geothermal fields out of more than 250 it could be developing.

The case for geothermal has become stronger with the rapid growth of Indonesia's economy and the corresponding strain on its creaking power infrastructure.

The archipelago of 234 million people is one of the fastest growing economies in the Group of 20 but currently only 65 percent of Indonesians have access to electricity.

The goal is to reach 90 percent of the population by the end of the decade, through a two-stage plan to "fast-track" the provision of an extra 10,000 MW by 2012, mostly through coal, and another 10,000 MW from clean sources like volcanoes by 2014.

President Susilo Bambang Yudhoyono's pledge to slash greenhouse gas emissions by 26 percent against 2005 levels by 2020 has also spurred the push to geothermal.

Many of the best geothermal sources lie in protected forests, so the government aims to allow the drilling of wells inside conservation areas while insisting that the power plants themselves be outside.

Geothermal fans welcomed the recent completion of negotiations between a consortium of US, Japanese and Indonesian companies and the state electricity company, Perusahaan Listrik Negara, over a 340 MW project on Sumatra island.

The Sarulla project will be Indonesia's second biggest geothermal plant, after the Wayang Windu facility in West Java.

"The Sarulla project is a perfect example of how Indonesia can realise its clean energy and energy security goals by partnering with international firms," US Ambassador Cameron Hume wrote in a local newspaper.

Several firms such as Tata and Chevron have submitted bids to build another geothermal plant in North Sumatra, with potential for 200 MW.


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Indonesia's Geothermal Potential Remains Untapped

Titania Veda, Jakarta Globe 22 Apr 10;

Garut, West Java. Beneath Darajat Mountain lies the village of Sirnasari. The bread and butter of this community of 8,500 people is jacket-making and other cottage industries. But frequent blackouts, due to infrastructure problems such as decaying or falling transmission poles, cause production delays that affect these small entrepreneurs’ profit margins.

“When there’s a blackout, we really feel it because we can’t produce at work. And then we can’t pay our electricity bills and our electricity at home gets cut off,” said Tati, a housewife whose husband makes jackets.

Energy experts mockingly refer to Indonesia’s current energy woes, complete with blackouts and shortages, as the “dark ages.” The country has been beset by power outages as infrastructure has failed to keep pace with growth. The existing generating capacity is 30,500 megawatts, a power deficit of 4,555 MW, according to data released by state-owned power company PT Perusahaan Listrik Negara in January. Analysts say the shortages have hurt industry and deterred investment.

Untapped Solution

With the government’s “fast-track” program to create a new power supply still in the works, the central government is increasingly touting geothermal power as a clean, renewable and environmentally friendly energy source. Located within the Pacific Ring of Fire, the most seismically active place on earth, Indonesia has the world’s largest geothermal energy reserves.

The fast-track program’s second phase, estimated to cost $12 billion and targeted for completion in 2014, mandates that around 4,000 MW of electricity come from geothermal power plants.

The Energy Ministry hopes to attract the needed billions from global investors at the 2010 World Geothermal Congress & Exhibition beginning on Sunday in Bali. A key geothermal event, the congress is expected to attract around 2,500 technical experts, officials and investors from 80 countries.

Geothermal energy could conceivably power the entire archipelago, but it has barely been tapped. Currently, just 1,189 MW of geothermal power are being produced in 15 plants in Java and Bali — only 4.2 percent of the country’s potential capacity. The Ministry of Energy and Mineral Resources says the country may have enough geothermal reserves to produce up to 27,170 MW in 265 locations including Sumatra and Sulawesi.

If that’s not enough to convince decision-makers to embrace geothermal, there are additional cash benefits. Using geothermal power instead of coal-fired power plants could enable operators to sell carbon credits because the plants are low-emitters. According to Energy Ministry data, Indonesia could earn up to $477 million by 2014 in carbon credits generated from low-emission geothermal projects alone.

It remains to be seen how long it will take before Indonesia becomes a geothermal power. The village of Sirnasari, for example, lies in a valley at the foot of Darajat Mountain, some 10 kilometers below a geothermal power plant run by a local unit of US energy giant Chevron. Regardless, it has its share of power blackouts.

According to Chevron spokesman Usman Slamet, Chevron is contracted by state electricity utility PLN to supply 259 MW of power from the Darajat plant, which lies around 2,000 meters above sea level, directly to the Java-Madura-Bali electricity grid. Electricity for Sirnasari, therefore, comes via PLN and not the mountains.

‘Poisoned Steam’

Aside from the complaints from local villagers around the district of Garut about the blackouts, the central and local government faces another problem: widespread misinformation and ignorance about geothermal energy.

“People I speak to think it’s related to Lapindo,” said Erfan Hutagaol, head of the Energy Ministry’s geothermal business effort section, referring to the mudflow disaster in East Java. “And there are those who are already using geothermal for tourism purposes, such as natural hot springs. And they’re afraid the hot springs will disappear if we develop geothermal energy.”

One a recent day in Pasirwangi, a subdistrict of Garut, a local farmer named Amat was off-loading sacks of potatoes from a truck. In the distance, beyond the potato and vegetable fields, white puffs of steam from the Chevron plant rose above the mountains.

Amat, a lifelong resident of Pasirwangi, has lived in the area before and after Chevron signed its geothermal contract in 1984. Although he lives and works only about 5 kilometers from the plant, Amat admitted that he doesn’t know what geothermal is or how it works. He said he sticks to his potato and vegetable farming, although he’s been facing problems with low crop yields. Now 40 years old, he said that life as a farmer was better prior to Chevron’s arrival.

“Farmers complain that their crops get viruses from the steam,” Amat said.

Ibang Lukmanurdin, program manager for the Pasundan Peasants Union (SPP) in Garut, added, “Numerous farmers and laborers claim the land is being polluted by the steam. We have engineers who can exploit solar energy and bio-gas... so leave the [geothermal] wealth alone.”

“There is poison in the steam. You can smell it,” said Asep, 25, a farm hand in Pasirwangi, referring to the noticeable smell of sulfur in the air.

However, Ryad Chairil, an energy analyst with the Center for Indonesian Energy and Resources Law, denied that steam originating from geothermal plants, not to mention the earth, contained harmful poisons.

“The steam is derived from the bottom of the earth. If it contained poison, then the land surrounding it would be unhealthy. If the land can grow grass or rice, it means the land is basically healthy and the steam has no effect,” he said.

As for the foul smell, Chairil said, “The smell of sulfur is like a fart. It will not affect the land.”

Hadian Hendracahya, a program staffer at the Association for the Advancement of Small Businesses in Bandung (Pupuk), who does community development work in Garut district, also rejected claims that geothermal steam is making the land barren.

“Logically, it doesn’t make sense,” he said. A rice farmer himself, Hadian said the farmers weren’t considering that their lands could be yielding less due to over-cultivation or the excessive application of harmful chemical pesticides.

Greener Option

While officials from the energy minister and energy experts concede that any resource development project will have an environmental impact, they insist that environmental damage from geothermal is minimal compared to oil, gas and coal production. They also said that geothermal projects use less land: on average, a plant producing 200 Megawatts covers 37 hectares, while an open pit coal mine requires the clearing of hundreds of hectares of land.

That said, there are still environmental concerns about geothermal energy. An estimated 42 percent of Indonesia’s potential geothermal reserves are located within protected or conservation forests, the latter of which is off limits to geothermal production according to 1999 forestry law. The law does allow geothermal plants in production forests as well as protected forests.

The Ministry of Forestry is preparing a new draft law that would allow the drilling of geothermal wells in conservation forests as it seeks to boost electricity generation.

But that may only further anger local populations if they don’t understand how geothermal production works, or think it’s destroying their local environments, Hadian said. Out of the dozen farmers and villagers in Garut’s Pasirwangi and Samarang subdistricts who spoke to the Jakarta Globe, only one understood the definition of geothermal energy and its potential benefits.

“I know that geothermal is an energy that is kept inside the earth, and if managed well, it can be used for future energy,” said Rian Herdiana, a 20-year-old villager from Sirnasari who received entrepreneurial training from Chevron as part of its community development program.

PLN, the Energy Ministry and Chevron insist that they run education campaigns for the public about geothermal energy, including school visits in Garut and open tours of the plant.

“There’s always a communication gap between everyone. The local government is the one responsible for disseminating information to the villagers,” Chairil said.

But villagers don’t seem too perturbed by their lack of understanding, mostly because their main concern is their livelihoods. In fact, the main gripe that residents of Garut’s subdistricts have about the Chevron plant is that the company hires workers from outside the area.

“There has been no progress in the area because it’s very difficult to place our local people in the company. These days, the application process is difficult and you need money to bribe people to get a job there,” Amat said.

Multinational corporations such as Chevron are often accused of discriminatory hiring practices.

However, Usman countered that between 85 and 90 percent of the 400 staff at the Chevron plant is from Garut district.

That said, geothermal projects also require skilled workers and many Pasirwangi residents such as Asep don’t go beyond primary school. He said he’s been working as a farm laborer since he was 13 years old.

“The problem is each village wants a monopoly, so it’s understandable that people will say only a small section from their village work in Darajat,” Usman said.

Meanwhile, other young villagers such as Rian are pinning their hopes on geothermal giants like Chevron to help their villages progress in other ways.

“I hope Chevron can come up with the technology so there are no more increases in the basic electricity tariff and no more electrical disturbances here,” Rian said.


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Jakarta's geothermal goal too ambitious

John McBeth, Straits Times 12 Apr 10;

INDONESIA may be home to 28,100 megawatts of potential geothermal power, equivalent to 12 billion barrels of oil or the current capacity of the main Java-Bali grid, but only now is it starting to focus on harnessing it as a major part of the country's energy mix.

Under a US$17.3 billion (S$24 billion) so-called Second Crash Programme, scheduled for completion in 2014, the government wants to build 44 new geothermal plants, adding 3,997MW to the existing output of 1,179MW.

While the initial plan was to add 4,500MW, the boost still represents 40 per cent of the 10,153MW programme, with clean and renewable energy offered by geothermal, natural gas and hydro power taking precedence over coal, which dominated the first fast-track projects.

Geothermal currently makes up only 3 per cent of state-run utility Perusahaan Listrik Negara's (PLN) power generation, behind coal (33 per cent, but soon to rise to 40 per cent), oil (36 per cent), natural gas (18 per cent) and hydro (18 per cent). The national energy policy stipulates that geothermal usage should rise to 9,500MW by 2025.

Mines and Energy Ministry officials hope that an international geothermal conference in Bali later this month will provide an opportunity for Indonesia to attract global investors to a sector that has been largely neglected.

Experts, however, are already questioning whether PLN and private power developers will be able to raise the estimated US$12 billion needed for the new plants.

The order-of-magnitude cost of a geothermal project works out at about US$2.6 million a megawatt, far greater than the US$1.3 million for a coal plant because of the heavy up-front investment needed to develop and pay for the resource.

Much will depend on the government's willingness to issue sovereign guarantees and also on how private developers view the Ministry of Mines and Energy's decision to set a price ceiling of 9.7 cents per kilowatt hour.

While that is double what PLN pays for coal-fired power, it may still not be enough for firms to make a sufficient return in such new 'greenfield' areas as Sulawesi, Maluku and the Nusa Tenggara island chain.

One guide to future pricing may come from the recently concluded negotiations between PLN and an Itochu Corp-Ormat Technologies-Medco Energi consortium over the two-stage 440MW Sarulla geothermal plant in North Sumatra.

When the consortium took over the US$600 million project in 2006 from the original developer, a joint venture between PLN and the Pertamina state oil company, the kilowatt-per-hour price of 4.52 US cents was based on 2004 levels.

The newly negotiated rate is 6.79 US cents, short of the 8 US cents the consortium is believed to have been holding out for, but apparently sufficient to cover a 40 per cent increase in construction costs over the last five years.

The project is crucial in providing future base load power for PLN's electricity-starved 1,130MW North Sumatra- Aceh grid system, with sales revenue expected to top about US$115 million a year when it reaches full capacity.

Sarulla will be Indonesia's second biggest geothermal plant, after the Wayang Windu complex in West Java, where Indonesian-owned Star Energy plans to add a further 240MW extension to its existing 110MW and 117MW units.

Star has similar pricing concerns, but industry sources say the Sarulla deal may fall short as a benchmark because of different contract variables and a greatly reduced price escalation clause in the new 30-year contracts.

Developers are also concerned that while price escalation in earlier contracts kicked in from the date of signing, it now won't begin until the plant goes commercial - a four-year period during which capital costs could change dramatically.

'The government needs to take hard decisions on re-pricing,' says one power executive. 'But nowhere do we see either the leadership or the understanding of what it takes to ensure contract surety.'

Not everyone is sympathetic. 'Risk transfer is the whole idea behind private power,' says one Western financier. 'The independents have to factor all this in. If PLN gives in too much, it could face allegations that it has caused losses to the state.'

While the government is paying commendable attention to the power needs of Sumatra and the outlying islands, analysts believe about half of the 44 plants are not viable because of poor economies of scale.

Among 12 planned projects at 20MW or below each are a 7MW plant on Sabang island, off Aceh's northern coast, and even smaller 5MW plants in Central Sulawesi, North Maluku and East Nusa Tenggara.

Another impediment is the fact that only a handful of specialised companies, including Chevron, Star, Medco and Supreme Energy, have the international financial backing and the expertise to build a geothermal plant.

'There are a lot of cowboys out there with no visible means of support,' says a senior industry executive. 'The government tender committee now tends to put in onerous pre-tender provisions just to weed them out.'

PLN recently announced it was transferring six of its originally planned 11 geothermal projects, with a total capacity of 860MW, to independent producers because of the problems it has had in securing financing.

Three of the projects in East Java were the subject of protest from the provincial government, which correctly argues that under the 2003 Geothermal Law it has the sole right to choose investors and decide on downstream usage.

PLN has yet to issue a draft power purchase agreement to regional administrations which, as designated owners of geothermal resources, are supposed to award the concession agreements.

Geothermal plants take five years to build, which means the government is already facing an uphill struggle to meet a deadline that was hopelessly ambitious in the first place.


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Indonesia's Lampung geothermal plant ready for auction

Oyos Saroso H.N., The Jakarta Post 29 Mar 10;

The West Lampung administration plans to auction the management of the Suoh-Sekincau geothermal power plant next month to help solve energy shortages in the province, says an official.

Regent Mukhlis Basrim said that the power plant was ready for auction following the decision from the Energy and Mineral Resources Ministry allowing it to be mined.

“With the additional energy supply expected to be generated from the site, hopefully Lampung’s energy crisis will come to an end,” Mukhlis said.

Covering an area of 33,333 hectares, the geothermal site comprises of two blocks — Suoh and Sekincau. It is estimated the blocs have the potential to generate 430 megawatts (MW) of electricity.

“That is just from one geothermal site. We have several others in West Lampung that can be exploited to help fulfill the local demand for electricity and speed up development in the region,” Mukhlis said.

Data from the Lampung Energy and Mining Agency shows there are 13 geothermal sites in Lampung, with a combined potential of 2,945 MW of electricity.

Lampung has the country’s third-largest geothermal potential.

Of the combined potential, more than 800 MW are ready to be developed.

They include Ranau Lake in West Lampung (183 MW), Mt. Sekincau (West Lampung, 100 MW), Suoh Antata (West Lampung, 163 MW), Ulu Belu (Tanggamus regency, 156 MW), and Way Ratai and Kalianda (South Lampung, 194 MW and 40 MW respectively).

He said his administration had signed a memorandum of understanding with the management of the Bukit Barisan Selatan National Park (TNBBS) following the central government’s decision to allow the Suoh-Sekincau blocks to be mined.

Lampung Governor Sjachroedin Z.P., said that his administration would keep pushing the regencies to develop geothermal energy.

The move, he said, aimed to ensure that all subdistricts in the province would have electricity in the next three years.

Currently, out of 2,331 subdistricts in Lampung, only 1,533 have electricity networks.

In an effort to reach the target sooner, Sjachroedin said his administration had also been developing micro-hydro power plants in a number of areas across the province, including the Mt. Betung micro-hydro plant.

Electricity shortages have increased in Lampung for the last three years.

With an average demand of 442 MW, it can only produce 325. The remainder is supplemented by the Sumatra interconnection.

The PLTA Batutegi hydroelectric power plant in Tanggamus (90 MW) and the PLTA Way Besai plant (45 MW) in West Lampung, are designated as the main suppliers of electricity for state electricity company PLN, but the plants have been unable to produce enough electricity due to water shortages.

To deal with the problem, PLN is currently developing a number of power plants, including steam-powered electric generators in South Lampung.


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Support for geothermal projects open to Indonesian government abuse: Activists

Adianto P. Simamora, The Jakarta Post 13 Mar 10;

Environmental activists are wary that their support for building geothermal plants in protected forests will be an excuse for the government to allow companies to operate mines in the areas.

The concerns were raised following the passing of new regulation allowing underground mining in protected forests. Activists say geothermal plants pose different environmental impacts from mining and that the government should draw a clear distinction.

WWF Indonesia climate policy coordinator Ari Muhammad said allowing mining in protected areas would only accelerate already high levels of deforestation in Indonesia, which runs counter to the government’s pledge to voluntarily reduce emissions to combat climate change.

“We support the development of geothermal energy as an alternative energy source, but our support doesn’t extend to issuing permits to exploit mineral resources in protected forests,” he told The Jakarta Post on Friday.

The government pledged to cut greenhouse gas emissions by 26 percent by 2020, 14 percent of which would come from the forest sector.

To meet the 14 percent target, the Forestry Ministry vowed to slow down deforestation, which currently stands at 1.08 million hectares lost per year, and combat widespread illegal logging.

Data from the Energy and Mineral Resources Ministry showed 265 geothermal deposits across the country had a potential energy yield of 28,100 megawatts.

It estimated that 70 percent of the country’s geothermal deposits were located in protected and conservation areas.

The 1999 Forestry Law prohibits mining in both protected and conservation areas.

Last week, the government issued a regulation paving the way for underground mining in protected and production forests following protracted debate.

Geothermal energy has been a key topic in alternative energy, with climate change experts pointing out the massive dependence on fossil fuels as the main source of carbon emissions.

The National Energy Policy stipulates that energy from geothermal sources should reach 9,500 megawatts by 2025.

The Energy and Mineral Resources Ministry said eight geothermal energy sites had been discovered so far in West Papua, Maluku and West Sulawesi.

The head of the ministry’s geological agency, Suchyar, said that by 2014, the country would generate 5,000 megawatts of electricity from geothermal sources, equal to the energy from 2.4 billion barrels of oil.

The director of Institute Indonesia Hijau, Chalid Muhammad, warned that the development of geothermal projects should comply with environmental standards.

“Energy from geothermal heat is far more environmentally friendly than nuclear or coal but the huge development needed also has negative impacts, including on human conflict,” he said.

Chalid said the government should stop providing new licenses to mine, including in protected forests as the 10,000 licenses already issued was excessive.

Chalid voiced suspicion that the policy to allow mining in protected areas was a first step toward massive conversion of forests for other uses.

Greenpeace Indonesia climate and energy campaigner Nur Hidayati, who supports geothermal projects, urged the government to drop regulations on mining in protected forests if it was serious about meeting its emission cut target.

“The government has double standards. They promised to reduce emissions to tackle climate change but on the other hand, they issue policies accelerating forest destruction,” she said.

World Bank Helps Indonesia Increase Geothermal Energy
Lisa Friedman of ClimateWire, New York Times 22 Mar 10;

The World Bank has announced $400 million to help double Indonesia's geothermal energy capacity, part of a broad effort at the bank to ramp up climate change spending in the developing world.

Indonesian leaders estimate the country has about 28,100 megawatts of geothermal capacity -- the equivalent of about 12 billion barrels of oil. They are aiming to make the renewable power a major source of energy in the coming years, a goal that Indonesian officials note will require hefty foreign investments.

At the same time, the country has pledged to reduce its growth of greenhouse gas emissions 26 percent in the coming decade. World Bank officials said they believe the funding will help Indonesia meet its goal.

"Indonesia has the largest geothermal energy potential in the world. The co-financing will help Indonesia reduce the use of fossil fuels to meet its rapidly growing energy needs. It also gives a clear signal on the practical actions developing countries can take to combat global climate change," Katherine Sierra, the World Bank's vice president for sustainable development, said in a statement.

The funding announcement comes at a time of heightened tension at the World Bank. The board is expected to decide next month whether to lend South Africa $3.75 billion for a 4,800-megawatt coal-fired power plant. The project has sparked widespread anger in the environmental community, which is pressing the World Bank to eliminate all fossil fuel lending and only fund clean-energy projects.

The debate could have a direct impact on the bank's Climate Investment Funds, from which money for the Indonesia geothermal plan flows. Green groups are leaning on Congress not to put money into World Bank climate programs as long as the institution continues to underwrite coal. They also are closely eyeing the fund's 2012 sunset provision, and argue the bank should not assume it will be the main delivery mechanism for the hundreds of billions of dollars wealthy nations have pledged to fight climate change.

"They have to prove they're going to be helpful and not hurtful, and the jury is still out on that," said Jake Schmidt, international policy director at the Natural Resources Defense Council.

Bank earmarks $40 billion for low-carbon projects

The bank, meanwhile, appears to be moving full speed ahead to increase climate funding. At a weeklong meeting in the Philippines to discuss the climate fund, World Bank executives announced plans to mobilize $40 billion for country-led low-carbon growth.

In addition to the Indonesia plan, the bank has approved projects in Columbia, Kazakhstan, Egypt, Mexico and several other countries to ramp up a range of solar, wind and public transportation plans.

Activists largely praised the World Bank's involvement in developing Indonesia's geothermal capacity. "Obviously, helping Indonesia invest in clean energy and at the same time meet development needs is critical," Schmidt said.

Under the plan, Indonesia will use the financing to "expand large-scale geothermal power plants and to accelerate initiatives to promote energy efficiency and renewable energy by creating risk-sharing facilities and addressing financing barriers to small- and medium-scale investments," the World Bank said.

Dennis Tirpak, a climate change expert at the World Resources Institute think tank, called the funding a positive step that can help jump-start Indonesia's geothermal industry. But he also stressed that Indonesia needs to make long-term policy changes -- particularly to its fossil fuel subsidy structure -- if it hopes to make lasting changes to its energy structure.

Indonesia's national energy policy aims to derive 9,500 megawatts of power from geothermal sources by 2025. Recently, the country's energy minister told The Jakarta Post that the country hopes to attract $12 billion in foreign investment when it hosts the World Geothermal Congress in late April.


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Winner of tender for Indonesian geothermal power plant require-2 guarantee

Antara 4 Feb 10;

Semarang (ANTARA News) - The Central Java provincial administration required a guarantee of Rp100 billion of the winner of tender for the building of a geothermal power plant in Ungaran, Semarang regency.

Head of the Central Java energy and mineral resources (ESDM) agency Teguh Dwi Paryono said here Wednesday that the guarantee is proof of the readiness of the tender winner in carrying out the project.

He said this is based on past experience in other areas where nothing had been done with a geothermal power plant project.

"If the tender winner cannot carry out the work, the Rp100 billion will fall into the hands of the provincial administration. But if the project goes smoothly, the money will become part of the investment," he said.

The Central Java administration will also set up an independent team which will examine the financial condition of the tender winner.

Right now eight companies will be taking part in the tender, five of whom had already submitted their bids," he said.

The five companies include Medco Geoenergy, Bakrie Power, and Arta Aneka Tambang.

Teguh added that the winner of the tender will be announced in March 2010.(*)


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