Indonesia to Install Three New Geothermal Plants for Energy Expansion

Indonesia is set to increase its renewable energy capacity by an additional 90 megawatts (MW) by the end of the year as three new geothermal power plants become operational. This marks a significant step in the country’s push towards clean energy. The projects include PLTP Salak Binary (15 MW) in West Java, Blawan Ijen Unit 1 (34 MW) in East Java, and Sorik Marapi Unit 5 (40 MW) in North Sumatra. Eniya Listiani Dewi, Director General of Renewable Energy and Energy Conservation at Indonesia’s Ministry of Energy and Mineral Resources highlighted the growing adoption of geothermal energy over the past decade, expressing optimism for further expansion.

The Ministry of Energy and Mineral Resources anticipates geothermal investments to reach $664 million this year, bringing total investments in the sector to $5.4 billion over the past 10 years. However, despite its abundant renewable energy potential and strong economic growth, renewable energy investment in Indonesia has seen stagnation in recent years. According to the Institute for Energy Economics and Financial Analysis (IEEFA), the country attracted only $1.5 billion in investment last year, adding a modest 574 MW of capacity.

Indonesia has made notable progress since 2014, increasing its geothermal capacity by 1.2 gigawatts (GW), bringing the total installed capacity to 2.6 GW. This represents about 11% of the nation’s total geothermal potential. Currently, geothermal energy accounts for 5.3% of Indonesia’s energy mix, making it the world’s second-largest producer of geothermal electricity. The newly added capacity will electrify 1.3 million homes and help reduce greenhouse gas emissions by 17.4 million tons of carbon dioxide annually, significantly advancing Indonesia’s climate targets under the Paris Agreement.