The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Indonesia Geothermal Sector Attracts Panax, Mitsubishi, BP, Chevron

Indonesia has had the lowest volatility in economic growth of any OECD or BRIC economy over the past decade, while its economy in the short term is conjectured at close to 7% growth per year, according to Proactiveinvestors.com.au.

Concurrently, recent efforts by the Indonesian government to attract geothermal companies seem to be having an effect. At a September meeting in Washington DC on Renewable Energy Opportunities in Indonesia, hosted by the US-ASEAN Business Council, speaker Joel Kopp (U.S. Embassy Jakarta) recounted the efforts of Indonesian leaders, who have set a separate feed-in tariff for geothermal at between 10 and 18.5 cents-per-kWh. Also, projects under 10 MW are required to be purchased by state-owned utility Perusahaan Listrik Negara (PLN). Kopp added that PLN has made improvements to their reliability, as well.

Australian Panax Geothermal is making strides in Indonesia. With three key geothermal projects scheduled to begin production in Indonesia over the next three to four years, Kerry Parker, managing director, commented to press on the company’s growth in Indonesia: “Panax has long recognized the investment potential in Indonesia, having launched several projects within the region and with plans to expand on our current interests,” Parker said. Projects for Panax include the recently negotiated power purchase agreements for its Sokoria and Dairi Prime geothermal projects, each with a planned initial capacity to generate 30 MW. Agreements are with Indonesian electricity regulator PT PLN and the Indonesian Government.

One company with increasing interest is Mitsubishi Corporation, which has agreed to acquire 20% shares of Star Energy Geothermal Pte Ltd ("SEGPL"). SEGPL manages operation of the 420-MW Wayang Windu Geothermal Power Project Plant in Java Island, one of the world's largest geothermal resources. This acquisition is the country’s “first entry into the Indonesian power industry and its first operation of a geothermal power plant,” according to the release. Mitsubishi could develop and operate multiple geothermal power plants in Indonesia in the future, including an expansion of Wayang Windu. 

Additionally, oil and gas giant BP (UK) could expand its business in Indonesia, it said recently. Energy and Mineral Resources Minister Jero Wacik told The Jakarta Post the government was curious as to whether BP would enter the geothermal energy sector after US-based Chevron “had successfully become the world’s largest geothermal power producer after years of operating in Indonesia.”

Chevron Geothermal’s policy, government and public affairs manager, Ida Bagus Wibatsya was quoted that the development could create healthy competition among geothermal energy developers: “It will be very positive for the development of the geothermal energy industry as well as supporting the government’s programs on renewable energy resources.”

This article was originally published in GEA's Geothermal Energy Weekly and was republished with permission.

Lead image: Indonesia map via Shutterstock

Untitled Document

RELATED ARTICLES

States Already Seek To Delay Clean Power Plan

Andrew Harris, Bloomberg Fifteen states led by coal-rich West Virginia asked a federal court to stall Obama administration rules intended to c...

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

With Vast Amounts of Geothermal, Wind and Hydropower, Why No Solar In New Zealand?

James Ellsmoor, Contributor New Zealand has built an international brand on environmentalism and the great outdoors. So it is unsurprising that t...

Don’t Like Obama’s Clean Power Plan? Fine, Here’s Cap and Trade

Mark Drajem and Lynn Doan, Bloomberg Republican governors who boycott the Obama administration’s new power-plant regulations may instead get an offer they...

PRESS RELEASES

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Early Bird Registration Deadline for GRC Annual Meeting is This Week

The deadline for early-bird rates for registration for the biggest annual geothermal ev...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

FEATURED BLOGS

Transitioning to Net-Zero Living

Judith and Jeffrey adore living in Belfast, Maine – a quaint harbor town of Belfast, Maine. They previously res...

The True Cost of Electric Vehicles in Australia

In order to avoid increased congestion, further greenhouse warming and lessen Australia’s reliance on imported ...

The Coming Multi-trillion Dollar Energy Investment Drive

In coming years, a multi-trillion dollar low-emission energy investment drive will get underway. Three catalysts wil...

The Perfect Elevator Pitch

The elevator pitch is a concise statement that grabs attention and communicates value, ideally leading to a next step...

FINANCIAL NEWS

Leslie is located in Washington DC at the Office of the Geothermal Energy Association and serves on the Renewable Energy World North America Conference and Expo committee.

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

GRC Workshop at Indonesian International Geothermal Convention & Ex...

The Geothermal Conceptual Model & Well Targeting The Geothermal Me...

2015 AREDAY Summit

The 12th Annual AREDAY Summit, August 8-13th in Snowmass Colorado. Engag...

StartUp Green

AREI, American Renewable Energy Institute, in partnership with ...

COMPANY BLOGS

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

Registration Opens for GRC Annual Meeting & GEA Geothermal Energy Expo

GRC Annual Meeting & GEA Expo:   Register Now for the 2015 GRC ...

New Approach to Crowdfunding Renewable Energy Assets

In our business, our goal is to help people improve their quality of lif...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS