Geothermal Opportunities in Indonesia

Ministry of Energy and Mineral Resources

Directorate General of New Renewable Energy and Energy Conservation

© DGNREEC - MEMR- 2011

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY ANG ENERGY CONSERVATION

Geothermal Opportunities in Indonesia

Jakarta, 13 December 2011

by :

Directorate of Geothermal Energy




OUTLINEOUTLINEOUTLINEOUTLINE

I. Introduction

II. Geothermal Potential in Indonesia

III. Geothermal Policies

IV. Geothermal Potential In NTT and Jambi




INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION

• The Government of Indonesia (GoI) intends to accelerate and speed up the development of the vast geothermal resource potential available in the country and achieve the targets set in the Geothermal Roadmap.

• The GoI intends to enhance the investment climate for both existing developers as well as new entrants to the geothermal sector in Indonesia.

• The GoI intends to develop a pricing policy that would create sufficient financial incentives for developers and an adequate institutional framework to mitigate risks that may exist.

• The GoI intends to develop qualified human resources through the Capacity Building program to prepare and enhance the professionalism of human resources who meet the standards of national and international competence in the geothermal field.

• To realize this effort, the Government will make significant investments for which multi and bilateral resources are required. Stakeholder participation and support from Partners from within and outside




INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION ……………………. (CONT). (CONT). (CONT). (CONT)

• Indonesia has abundance potential on geothermal energy more than 29 GWe, yet, only less than 5% have been utilized. Total installed capacity of geothermal energy is 1,189 MW.

• Up to 2011, The Government of Indonesia (GoI) has determined total of fifty GWAs. Nineteen of the GWAs were established before the issuance of Law No. 27/2003 while 31 of them were established afterwards (New GWA).

• To support utilization of renewable energy especially geothermal energy, the GoI have been issued crash program to accelerate 10.000 MW electricity development which 40% derived from geothermal power plant.





I. Introduction







Source : Geological Survey, MEMR(2010)

GEOTHERMAL POTENTIAL MAPGEOTHERMAL POTENTIAL MAPGEOTHERMAL POTENTIAL MAPGEOTHERMAL POTENTIAL MAP

Already Developed

Ready to Developad

Detail Survey

Preliminary Survey

Note:

1 Sumatera 86 13,516 122 Java 71 10,092 1,1173 Bali 5 2964 Nusa Tenggara 22 1,4715 Kalimantan 8 1156 Sulawesi 55 2,519 607 Maluku 26 9548 Papua 3 75

276

No. IslandNumber of

Locations

1,18929,038

Install

Capacity

(MW)

Potency

(MW)

Total




INDONESIAINDONESIAINDONESIAINDONESIA’’’’S GEOTHERMAL POTENTIALS GEOTHERMAL POTENTIALS GEOTHERMAL POTENTIALS GEOTHERMAL POTENTIAL

RESOURCES

(MWe)%

RESERVE

(MWe)%

Speculative Hypothetical

45.36%

Possible Probable Proven

54.64%8.780 4.391 12.756 823 2.288

13.171 15.867

29.038Source : Geological Survey, MEMR as Desember 2010

-Enhance preliminary survey by Geological Agency of MEMR-Conducting Exploration by:• Revolving fund•Geothermal State Enterprises




2 GWA at NAD

Province

�Jaboi�Seulawah Agam

4 GWA at North

Sumatera Province

�Gn. Sibayak – Sinabung�Gn. Sibual – Buali�Sipaholon Ria-ria�Sorik Marapi - Roburan -Sampuraga

1 GWA JAMBI

Province

�Sungai Penuh

3 GWA at South

Sumatera Province

�Lumut Balai�Rantau Dedap�Danau Ranau

1 GWA at

MALUKU

Province

�Tulehu

2 GWA at North

Maluku Province

�Jailolo�Songa Wayaua

2 GWA at North

Sulawesi Province

�Kotamobagu�Lahendong-Tompaso

1 GWA at

GORONTALO

Province

�Suwawa

1 GWA at

Southeast Sulawesi Province

�Marana

50 GEOTHERMAL WORKING AREA

Note: Installed




No. Geothermal Working

Area/ LocationLicense Holder Developer

Name of

Geothermal

Power Plant

Installed

Capacity

(MW)

1Sibayak – Sinabung,

SUMUT

PT. Pertamina Geothermal

Energy (PGE)


Energy (PGE)Sibayak 12

2Cibeureum – Parabakti,

JABAR


Energy (PGE)

KOB - Chevron Geothermal

Salak, Ltd (CGS)Salak 375

3 Pangalengan, JABARPT. Pertamina Geothermal

Energy (PGE)

KOB - Star Energy

Geothermal Wayang

Windu, Ltd (SEGWWL)

Wayang

Windu227

4Kamojang – Darajat,

JABAR


Energy (PGE)


Energy (PGE)Kamojang 200

5Kamojang – Darajat,

JABAR


Energy (PGE)

KOB - Chevron Geothermal

Indonesia, Ltd (CGI)Darajat 255

6Dataran Tinggi Dieng,

JATENG


Energy (PGE)PT. Geo Dipa Energi (GDE) Dieng 60

7Lahendong – Tompaso,

SULUT


Energy (PGE)


Energy (PGE)Lahendong 60

1.189

9

INSTALLED GEOTHERMAL POWER PLANT CAPACITY 2010





I. Introduction







GOVERNMENT POLICGOVERNMENT POLICGOVERNMENT POLICGOVERNMENT POLICIESIESIESIES TO SCALE UP TO SCALE UP TO SCALE UP TO SCALE UP

GEOTHERMAL DEVELOPMENT IN INDONESIAGEOTHERMAL DEVELOPMENT IN INDONESIAGEOTHERMAL DEVELOPMENT IN INDONESIAGEOTHERMAL DEVELOPMENT IN INDONESIA

The Government of Indonesia (GoI) intends to accelerate and speed up the development of geothermal. In order to do so, the government intends to enhance the investment climate for both existing developers as well as new entrants to the geothermal sector in Indonesia.

1.Law No. 27/2003 on Geothermal and Gov. Regulation No. 59/2007 on Geothermal Business Activities, as amanded in GR No. 70/2010 are the basis of geothermal development Indonesia

2.Presidential Regulation No. 04/2010 jo Ministerial Regulation No. 15/2010 (2nd Stage of 10,000 MW Crash Program) in order to speed up the development of geothermal power.

3.Pricing Policy•Ministrial Regulation of MEMR No. 02/2011 on geothermal price structure. The MR gives certainty on electricity price from geothermal power plant:- Electricity price as the result of a GWA tender, is represent as purchase price by PT PLN in the Power Purchase Agreement, which is final and non negotiable- Ceiling price for geothermal energy: US$ 9.7 cents/kWh- If the price exceeds US$ 9.7 cents/kWh, negotiations between Parties are needed.




GOVERNMENT POLICGOVERNMENT POLICGOVERNMENT POLICGOVERNMENT POLICIESIESIESIES TO SCALE UP GEOTHERMAL TO SCALE UP GEOTHERMAL TO SCALE UP GEOTHERMAL TO SCALE UP GEOTHERMAL

DEVELOPMENT IN INDONESIA (contDEVELOPMENT IN INDONESIA (contDEVELOPMENT IN INDONESIA (contDEVELOPMENT IN INDONESIA (cont’’’’d)d)d)d)

5. Access to Potential Geothermal Resources for Investors• The Government offers a Preliminary Survey Assignment to third party (investor) which

provides “first right refusal”.• The GoI establishes new GWAs and widely open opportunities for investors to participate in

the geothermal business through GWAs tendering mechanism

6. In order to accelerate the tender process of new GWAs, the policies which regulate bidding process are being revised in order to make the tender more simple, transparent and bankable.

7. Coordinating with all relevant parties to accelerate and simplify the permit process.

8. Related to Forestry Issues, currently MEMR and Ministry of Forest are having intensive discussions to exempt geothermal activities as prohibit activities in the areas.

9. The government has issued a Presidential Decree that guarantees support for investment in Geothermal Infrastructure Project (PR No. 13/2010 jo PR No.67/2005 and PR 78/2010) and Ministrial of Finance Regulation No. 139/2011 (PMK No. 139/2011) which guarantee the business feasibility of PT PLN for developing electricity from renewable energy, coal, and gas through cooperation with Independent Power Producers.




GOVERNMENT POLICGOVERNMENT POLICGOVERNMENT POLICGOVERNMENT POLICIESIESIESIES TO SCALE UP GEOTHERMAL TO SCALE UP GEOTHERMAL TO SCALE UP GEOTHERMAL TO SCALE UP GEOTHERMAL

DEVELOPMENT IN INDONESIA (contDEVELOPMENT IN INDONESIA (contDEVELOPMENT IN INDONESIA (contDEVELOPMENT IN INDONESIA (cont’’’’d)d)d)d)

10.Capacity Building

Geothermal development in Indonesia requires qualified human resources. To support crash program of 10.000 MW electricity developments will require at least 800.000 worker with particular skill and knowledge on geothermal. These workers will need to be managed capably and efficiently to meet the qualification requirements in the geothermal field.

• The GoI are improving the ability, competency and professionalism human resources through training, short courses and advanced level education in collaboration with local and international educational institutions.




� Presidential Regulation No. 04/2010 on Assignment to PT. PLN to Accelerate Power Plant Development Using Renewable Energy, Coal and Gas

� MEMR Regulation No. 15/2010 on Projects List of Power Plant Accelerated Development using Renewable Energy, Coal and Gas as well as Related Transmission

� Target for Geothermal Power Plant Development on Crash Program 10.000 MW Phase II

- Development for Production on Existing Field : 645 MW

- Development for not yet in production on Existing Field : 1535 MW

- New Development Geothermal Working Area : 1787 MW

Total of Geothermal Development 3967 MW

STRATEGICAL TARGET FOR GEOTHERMAL DEVELOPMENT2010 S.D 2014




Road Map of Geothermal Development 2006 – 2025

Current Condition

2006

852 MW

(Produksi)

2008 2012 2016 2020

2000 MW 3442 MW 4600 MW 6000 MW 9500 MW(Target)

1148 MWExisting WKP

1442 MWExisting WKP

1158 MWExisting WKP + New WKP

1400 MWNew WKP

3500 MWNew WKP

2025

1189 MW

(based on Presidential Decree No. 5/2006 on National Energy Policy)

Plus 2nd Phase Crash Program Scenario

5156 MW





I. Introduction







GEOTHERMAL POTENTIAL IN NTT

No Location RegencyPotential

(MWe)

Installed

(MWe)Status

164 Wai Sano Manggarai 123 - Open Area

165 Ulumbu Manggarai 200 - WPSP

166 Wai Pesi Manggarai 54 - Open Area

167 Gou-Inelika Ngada 28 - Open Area

168 Mengeruda Ngada 5 - Open Area

169 Mataloko Ngada 75 - WPSP

170 Komandaru Ende 11 - Open Area

171 Ndetusoko Ende 10 - Open Area

172 Sokoria Ende 170 - WKP Baru

173 Jopu Ende 5 - Open Area

174 Lesugolo Ende 55 - Open Area

175 Oka Ile Ange Flores Timur 40 - Open Area

176 Atadei Lembata 40 - New GWA

177 Bukapiting Alor 27 - Open Area

178 Roma-Ujelewung Lembata 22 - Open Area

179 Oyang Barang Flores Timur 37 - Open Area

180 Sirung Alor 148 - Open Area

181 Adum Lembata 36 - Open Area

182 Alor Timur Alor 190 - Open Area

T O T A L 1,276 -




OKA ILE ANGE

• Oka Ile Ange area is included Flores Timur regency,

Province of Nusa Tenggara Timur

• In 2003 this field had conducted 3G survey (Geology,

Geochemistry and Geophysics) that give appearance

geothermal system in it.

• In 2011 GoI is conducting MT Survey in this area, it

will be finished in December 2011, this survey to

enrich previous survey from this field




ULUMBU

• Ulumbu area is included Manggarai regency,

Province of Nusa Tenggara Timur

• Ulumbu is one of Areas offered for Pre-Survey

Assignment based on Announcement of Director

General of New Renewable Energy and

Energy Conservation No. 104Pm/30/DJE/2011




No. Location Regency Province

1. Sungai Betung Kerinci and Pesisir Selatan Jambi and West Sumatera

2. Sungai Tenang Merangin Jambi

3. Ciseeng Bogor and Lebak West Java and Banten

4. Malawa Maros, Pangkajene Kepulauan, Bone and Barru

South Sulawesi

5. Gn. Dua Saudara Bitung North Sulawesi

6. Ulumbu Manggarai NTT

Areas offered for Pre-Survey Assignment(Announcement of Director General of New Renewable Energy and

Energy Conservation No. 104Pm/30/DJE/2011)




GEOTHERMAL POTENTIAL IN JAMBI

No. Location RegencyPotential

(Mwe)

Installed

(MWe)Status

51 Gunung Kapur Kerinci 10 - Open Area

52 Gunung Kaca Kerinci 25 - Open Area

53 Sungai Betung Kerinci 100 - WPSP

54 Semurup Kerinci 208 - Sungai Penuh GWA

55 Lempur Kerinci 205 - Open Area

56 Air Dikit Merangin 225 - Open Area

57 Graho Nyabu Merangin 185 - Open Area

58 Sungai Tenang Sorolangin 74 - WPSP

T O T A L 1,032 -

Sungai Betung Geothermal Area determined to be Pre Survey Assignment (WPSP) Sungai Betung through Ministrial Decision No. 2010.K/30/MEM/2009

Sungai Tenang Geothermal area determined to bePre Survey Assignment (WPSP) Sungai Tenang through Ministrial Decision No. 2010.K/30/MEM/2009







NO Geothermal Power

Plant ProjectStatus Province

Estimation

of Capacity

(MW)

Installed

Capacity

2014 (MW)

Required

Financing 2014

(US$ Million)

1 Seulawah Agam New WKP Aceh 1x55 55 165

2 Jaboi New WKP Aceh 1x7 7 21

3 Sarulla 1 Existing WKP North Sumatera 3x110 330 990

4 Sarulla 2 Existing WKP North Sumatera 2x55 110 330

5 Sorik Merapi New WKP North Sumatera 1x55 55 165

6 Muaralaboh New WKP West Sumatera 2x110 220 660

7 Lumut Balai Existing WKP South Sumatera 4x55 220 660

8 Rantau Dadap New WKP South Sumatera 2x110 220 660

9 Sungai Penuh Existing WKP Jambi 2x55 110 330

10 Hululais Existing WKP Bengkulu 2x55 110 330

11 Rajabasa New WKP Lampung 2x110 220 660

12 Ulubelu 3 dan 4 Existing WKP Lampung 2x55 110 330

13 Rawa Dano New WKP Banten 1x110 110 330

14 Kamojang 5 & 6 Existing WKP West Java 1x40 & 1x60 100 300

15 Cibuni Existing WKP West Java 1x10 10 30

16 Cisolok-Cisukarame New WKP West Java 1x50 50 150

17 Darajat Existing WKP West Java 2x55 110 330

18 Karaha Bodas Existing WKP West Java 1x30 & 2x55 140 420

19 Patuha Existing WKP West Java 3x60 180 540

20 Salak Existing WKP West Java 1x40 40 120

21 Tampomas New WKP West Java 1x45 45 135

22 Tangkuban Perahu I New WKP West Java 2x55 110 330

NO Geothermal Power

Plant ProjectStatus Province

Estimation

of Capacity

(MW)

Installed

Capacity

2014 (MW)

Required

Financing 2014

(US$ Million)

23 Tangkuban Perahu II Existing WKP West Java 2x30 60 180

24 Wayang Windu Existing WKP West Java 2x120 240 720

25 Batu Raden New WKP Central Java 2x110 220 660

26 Dieng Existing WKP Central Java 1x55 & 1x60 115 345

27 Guci New WKP Central Java 1x55 55 165

28 Ungaran New WKP Central Java 1x55 55 165

29 Ijen New WKP East Java 2x55 110 330

30 Iyang Argopuro Existing WKP East Java 1x55 55 165

31 Wilis/Ngebel New WKP East Java 3x55 165 495

32 Lahendong 5 dan 6 Existing WKP North Sulawesi 2x20 40 120

33 Kotamobagu 1 dan 2 Existing WKP North Sulawesi 2x20 40 120

34 Kotamobagu 3 dan 4 Existing WKP North Sulawesi 2x20 40 120

35 Bora Open Area Central Sulawesi 1x5 5 15

36 Merana/Masaingi New WKP Central Sulawesi 2x10 20 60

37 Huu New WKP West Nusa Tenggara 2x10 20 60

38 Sembalun Open Area West Nusa Tenggara 2x10 20 60

39 Atadei New WKP East Nusa Tenggara 2x2,5 5 15

40 Sukoria New WKP East Nusa Tenggara 2x2,5 5 15

41 Tulehu Existing WKP Maluku 2x10 20 60

42 Jailolo New WKP North Maluku 2x5 10 30

43 Songa Wyaua New WKP North Maluku 1x5 5 15

3967 11.901Total Development of Geothermal Power Plant until 2014

Geothermal Power Plant Projects included in Crash Program Phase II

Note : Cost to develop 1 MW = US$ 3 Million




NO FIELD REGENCY PROVINCEDEV.

TARGETS /

POT (MW)

STATUS OF

TENDER

PROCESS

1 Seulawah agam Aceh Besar Nangroe Aceh Darusallam 160 On Going

2 Jailolo West Halmahera North Maluku 75 Finished

3 Telaga Ngebel Ponorogo and Madiun East Java 120 Finished

4 Ungaran Mt. Semarang and Kendal Central Java 100 Finished

5 Tampomas Mt. Sumedang and Subang West Java 50 Finished

6 Cisolok Cisukarame Sukabumi West Java 45 Finished

7 Tangkuban Perahu Mt. Subang, Bandung and purwakarta West Java 100 Finished

8 Jaboi Sabang Nangroe Aceh Darusallam 50 Finished

9 Sokoria Ende East Nusa Tenggara 30 Finished

10 Talang Mt. Solok West Sumatera 36 Preparation

11 Blawan Ijen Bondowoso, Banyuwangi and Situbondo East Java 270 Finished

12 Hu'u Daha Dompu West Nusa Tenggara 65 Finished

13 Sipaholon Ria-ria Noth Tapanuli North Sumatera 75 Re-Tender

14 Bukit Kili Solok West Sumatera 83 Re-Tender

15 Sorik Marapi Roburan Mandailing Natal North Sumatera 200 Finished

16 Marana Donggala Central Sulawesi 36 Re-Tender

17 Songa Wayaua South Halmahera North Maluku 140 Preparation

18 Atadei Lembata East Nusa Tenggara 40 Finished

19 Suwawa Bone Bolanga and Gorontalo Gorontalo 110 Re-Tender

20 Kaldera Danau Banten Serang and Pandeglang Banten 115 Finished

21 Rajabasa Mt. South Lampung Lampung 91 Finished

22 Liki Pinangawan Muara Laboh, Solok Selatan West Sumatera 400 Finished

23 Suoh-Sekincau West Lampung Lampung 230 Finished

24 Rantau Dadap Muara Enim, Lahat dan Pagar Alam South Sumatera 106 Finished

25 Guci Tegal, Brebes and Pemalang Central Java 79 Finished

26 Baturaden Tegal, Brebes, Pemalang, Banyumas and PurbalinggaCentral Java 175 Finished

27 Bonjol Pasaman West Sumatera 200 Preparation

28 Danau Ranau West Lampung, Ogan Komering Ilir Lampung, South Sumatera 210 Preparation

29 Mataloko Ngada East Nusa Tenggara 63 Preparation

30 Gn. Ciremai Kuningan, Majalengka West Java 150 Preparation31 Gn. Endut Lebak Banten 80 Preparation

3684TOTAL

New GWAs Offered Through Tender Process(after Law No. 27/2003 on Geothermal)

As Total Project Scenario, IPP SchemeAs Total Project Scenario, IPP SchemeAs Total Project Scenario, IPP SchemeAs Total Project Scenario, IPP Scheme As of October 2011




Mechanism of Geothermal Preliminary Survey Assignment

1b

3b

3a

4b

c.q

Business Entity Directorate General of New Renewable Energy and Energy Conservation

Minister of Energy and Mineral Resources Directorate of Geothermal

2

1c

1a

5

4a




Remarks1a. Business Entity request for a Preliminary Survey Assignment Map to Director General of New,

Renewable Energy and Energy Conservation

1b. Preliminary survey assignment map is printed by Directorate of Geothermal (as basis of first come first served)

1c. Preliminary Survey Assignment Map is given to Business Entity

2. Business Entity obtaining the Preliminary Survey Assignment Map within 5 (five) working days of maximum period, must propose for Preliminary Survey Assignment to the Minister c.q. Director General , c.c. Geological Agency, Governor and Regent/Mayor. The proposal should be attached with Preliminary Survey Assignment Map; administration, technical and financial requirements.

3a. Director General c.q. Directorate of Geothermal evaluate the proposal within 15 (fifteen) working days of the proposal received. Business Entity is also required to make presentation of activity and working plan and budget estimation based on technical and financial requirements)

3b. The evaluation result submitted to Director General.

4a. If the evaluation meets the requirements, Director General recommends to the Minister to give approval for Preliminary Survey Assignment to Business Entity.

4b. If the evaluation doesn’t meet the requirements, Director General rejects the proposal.

5. Minister gives Pre-Survey Assignment to Bussinss Entity.

Documents

Geothermal Opportunities in Indonesia