Turbines and ORCs go ‘local, flexible, cost effective’ to grow as Indonesia plugs power shortfall through $420-million geothermal energy projects in 2016

Indonesia’s power shortfall needs to be addressed urgently, opening up $88 billion worth of opportunities to electricity players who are locally accessible, flexible, and cost effective. Globalgeothermal companies, IPPs, financiers, and regulators meet at the World Geothermal Energy Summit, happening on 10-11November 2016 at the Sari Pan Pacific Jakarta, Indonesia to overcome infrastructure, technical, and financing obstacles to help plug Indonesia’s electricity shortfall.

JAKARTA – 13 October, 2016 – The progress towards the 6,000 MW target of installed geothermal power capacity by 2020, is accelerating as Indonesia pushes to meet rising electricity demand of 9 percent annually over the next four years, Indonesia is taking on about 210 power plant projects — an $88 billion investment, benefiting turbine and organic ranking cycle manufacturers, whose technology is a critical component for geothermal plants.

Innovation means cost-effectiveness in turbine technology

“We are pleased to play a role in developing Indonesia’s electricity infrastructure by providing ORC technology, which is particularly suitable for the exploitation of medium to low enthalpy sources in Indonesia,” says David Paul,  Head of Business Development, Turboden. “Turboden’s turbines have very high efficiency (up to 90%), addressing Indonesia’s ground challenges.” As the summit’s Conference Sponsor, Turboden will feature a cost-effective solution for geothermal power plant operators.

Being locally present for technical questions

Locally, two geothermal working areas in Jambi and North Maluku, worth a total $420 million, will be offered by the government towards reaching renewable energy goals, according Indonesia’s energy ministry. The government has established 33 projects for investors after passing the geothermal law in 2014 which allows exploitation of forested areas to tap 29,000 megawatts of geothermal energy potential.

“This is the best time to be locally present in Indonesia and ensure that all our clients can talk to us specifically about any technical questions,” says Tao Liu, Technical Expert at Honeywell. “Optimising the economics of organic ranking cycle (ORC) for geothermal through selecting the right working fluid is a key competitive advantage, adds Tao. Honeywell is also this year’s Conference Sponsor at the World Geothermal Energy Summit.

The latest two projects are the 110-megawatt Graho Nyabu power plant in Jambi, which covers an area of 109,000 hectares and has an estimated reserve of 200 megawatts, and the 20-megawatt Gunung Hamiding power plant in North Maluku on 42,100 hectares, with an estimated reserve of 265 megawatts.

Submit investor offers by 20 October 2016

Yunus Saefulhak, director of geothermal services at the Ministry of Energy and Mineral Resources, said investors can submit their offers by October 20, 2016.

Benchmark prices offered for Graho Nyabu geothermal block is capped at 15 cents per kilowatt-hour and 22.6 cents per kilowatt-hour for Gunung Hamibing, Yunus said.

Two more geothermal projects will be up on offer later this month — the 10-megawatt Gunung Galunggung in West Java and the 20-megawatt Gunung Wilis in East Java, and two more are being prepared for auction — the 20-megawatt Marana in South Sulawesi and the 65-megawatt Gunung Talang-Bukit Kili in West Sumatra.

According to the ministry, 25 more projects with a total capacity of approximately 1,500 megawatts will be auctioned by 2018.

Since the law passed two years ago, the government has only auctioned the 165-megawatt Gunung Lawu on the border of East and Central Java, and the 55-megawatt Way Ratai in Lampung. The first project was won by state-owned energy company Pertamina, while the second by Enel Green Power, an Italian multinational renewable-energy corporation, and a local firm Optima Nusantara Energi.

By 2025, Indonesia wants to reach the capacity of 7,000 megawatts from geothermal power plants. Currently, the capacity is only 1,404 megawatts. And flexibility is critical for a purchase buy-in.

“With Indonesia having homes using only modest amounts of electricity, yet where large spikes in power demand caused by a population boom, a rapidly growing economy or a seasonal influx of tourists are happening—your technology should provide this flexibility,” says Matt Todd, CEO at Eastland Group. Matt will talk about ensuring investment returns in geothermal energy.

The 7th World Geothermal Energy Summit, happening on 10-11November 2016 at the Sari Pan Pacific Hotel, Jakarta, Indonesia, is designed specifically to help geothermal power developers and operators to successfully build 8,122 MW new installed capacity before 2020 in Indonesia and grow in Asia and:

 (1) Tap Indonesia’s guaranteed growth in geothermal energy and electrification

 (2) Tackle construction-related issues in over 299 geothermal locations, and

 (3) Accelerate your geothermal business in one of the world’s largest hydrothermal, geothermal resource

More insights that will be shared at the World Geothermal Energy Summit 2016 include:

Sustainable Development Strategy of Geothermal Energy – A Case Study at One of Geothermal Power Plant in Indonesia

Arief Yunan, Darajat Geothermal Bandung, Chevron Indonesia

Minimising risk in setting up a geothermal business in Indonesia

David Eyerly, SSEK

Optimising Economics of Organic Rankine Cycle for Geothermal through Selection of Working Fluid

Tao Liu, Honeywell

Organic Rankine Cycle (ORC) Innovation for Geothermal Applications

David Paul, Turboden

Ensuring Investment Returns: Case Study in New Zealand Geothermal

Matt Todd, Eastland Group

Reducing Capital Risk

Hezy Ram, Akiira Geothermal Ltd.

Management of Capability Building Human Capital

Alex Aposteanu, ASA GeoExchange

Building Your Geothermal Energy Capability

Dr. Prijo Hutomo, Synergy Indonesia

Reshaping Indigenous Economies: A Case Study on Geothermal

Gervais Nzoa, United Nations

To register your team at only $1950 each (Groups of 3: 30% off, Groups of 5: 50% off), email your registration form to geothermal@arcmediaglobal.com today!

Visit www.arcmediaglobal.com/geothermal to request full agenda, exhibit, or sponsor a speaking session.

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