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PROGRESS AND EXPECTATION FOR GEOTHERMAL DEVELOPMENT Bangkitkan Energi Negeri Pertamina Geothermal Energy Direktur Utama, Rony Gunawan International Indonesia Geothermal Conference & Exhibition Jakarta Convention Center, 4 – 6 Juni 2014 Volcanic Spreading & Plate Boundaries In The World •Indonesia take place in the subduction zone between Australian & Asian Ocean Plate Tectonic PT PERTAMINA (PERSERO) PERTAMINA File:Hen/srt/Sejarah Pengembangan Energi Geothermal Indonesia.ppt 2 Indonesia has the highest potential for geothermal energy in the world Conventional geothermal 2010 capacity and total potential capacity GW Indonesia 1 3 U.S. Japan Others1 27 1 19 2 18 Potential Resource Utilization % 4 28 20 Installed 13 23 20 3 20 10 • In spite of its world’s largest potential of geothermal resource, the utilization only remains 4% • Geothermal resource in Philippines 2 Mexico 1 Iceland 1 New Zealand 1 3 Total 6 33 5 6 20 5 6 10 4 16 4 11 1 Includes mostly South/South-East Asia and Africa 102 113 10 Indonesia is also high temperature resource which enable more economical geothermal development project DISTRIBUTION OF GEOTHERMAL WORKING AREA NAD 2 GWAs Jaboi: 70 MW Seulawah Agam: 130 MW Lisence – Issued Tender on Progress Tender Preparation Tender – Failed NORTH SUMATERA 5 GWAs •Sibayak – Sinabung: 130 MW Sibual – Buali: 750 MW Sipaholon Ria-ria: 75 MW Sorik Marapi: 200 MW Simbolon Samosir: 155 MW NORTH SULAWESI 2 GWAs Kotamobagu: 410 MW Lahendong-Tompaso: 358 MW GORONTALO 1 GWAs Suwawa: 110 MW JAMBI 1 GWA Sungai Penuh: 70 MW SOUTH SUMATERA 3 GWAs Lumut Balai: 250 MW Rantau Dedap: 106 MW Danau Ranau: 210 MW WEST SUMATERA 4 GWAs Bukit Kili: 83 MW Gn Talang: 35 MW Liki Pinangawan: 400 MW Bonjol: 200 MW BENGKULU 2 GWAs Tmbg Sawah-Hululais: 873 MW Kepahiang: 180 MW LAMPUNG 5 GWAs Gn.Rajabasa: 91 MW Suoh Sekincau: 230 MW Waypanas – Ulubelu: 556 MW Danau Ranau: 210 MW Way Ratai: 105 MW : 38 GWAs : 2 GWAs : 13 GWAs : 5 GWAs BANTEN 2 GWAs Kaldera Danau Banten: 115 MW G. Endut: 80 MW WEST JAVA 10 GWAs Ciater - Tgkban Perahu: 60 MW Cibeureum–Parabakti: 485 MW Cibuni: 140 MW Cisolok Cisukarame: 45 MW Gn. Tampomas: 50 MW Gn. Tgkuban Perahu: 100 MW Kamojang-Darajat: 1465 MW Karaha Cakrabuana: 725 MW Pangalengan: 1106 MW G. Ciremai: 150 MW BALI 1 GWAs Tabanan: 276 MW MALUT 2 GWAs Jailolo: 75 MW Songa Wayaua: 140 MW CENTRAL SULAWESI 2 GWAs Marana: 35 MW Bora Pulu: 123 MW CENTRAL JAVA 6 GWAs Baturaden: 175 MW Dataran Tinggi Dieng: 780 NTB 2 GWAs MW Hu'u Daha: 65 MW Guci: 79 MW Sembalun: 100 Gn. Ungaran: 100 MW MW Candi Umbul Telomoyo: 72 MW EAST JAVA 3 GWAs Gunung Lawu : 195 MW Blawan – Ijen: 270 MW Gn. Iyang Argopuro: 295 MW Telaga Ngebel: 120 MW MALUKU 1 GWA Tulehu: 100 MW NTT 5 GWAs Atadei: 40 MW Sokoria: 30 MW Ulumbu: 199 MW Mataloko: 63 MW Oka Ile Ange: 40 MW NRE&EC, MEMR IIGCE2013 Pertamina’s Geothermal Projects Current Installed Capacity: 402 MW LAHENDONG : 80 MW KAMOJANG : 200 MW SIBAYAK : 12 MW ULUBELU : 110 MW On-going 9 Geothermal Projects No Project Location Capacity (MW) Project Type 1 Lumutbalai Unit 1&2, South Sumatera 2 x 55 MW Total Project 2 Lumutbalai Unit 3&4, South Sumatera 2 x 55 MW Total Project 3 Ulubelu Unit 3&4, Lampung 2 x 55 MW Total Project 4 Kamojang Unit 5 West Java 30 MW Total Project 5 Lahendong Unit 5&6 North Sulawesi 2x20 MW Total Project 6 7 Kotamobagu Unit 1&2 Hulu Lais Unit 1&2 North Sulawesi Bengkulu 2 x 20 MW 2 x 55 MW Steam Supply Steam Supply 8 Sungai Penuh Unit 1 Jambi 55 MW Steam Supply 9 Karaha West Java 30 MW Total Project SIBAYAK OPERATION 12MW SUNGAI PENUH STEAM AVAILABLE 5MW ON GOING EXPLORATION Own Operation And Progres Projects HULULAIS STEAM AVAILABLE 30MW ON GOING EXPLOITATION SUMATERA KOTAMOBAGU EXPLORATION DRILLING (2 WELLS) PROSPECT WITHIN CONSERVATION AREA LAHENDONG STEAM AVAILABLE 110MW MALUKU OPERATION 80MW BIDDING PROCES EPCC 2X20MW KALIMANTAN SULAWESI PAPUA ULUBELU (4 x 55 MW) STEAM AVAILABLE 190 MW OPERATION 110 MW ON GOING EXPLOITATION BIDDING PROCESS 2X55MW IYANG ARGOPURO EXPLORATION GGG SURVEY PROSPECT AREA WITHIN CONSERVATION KARAHA STEAM AVAILABLE 26MW ON GOING EXPLOITATION BIDDING PROCESS EPCC 30MW LUMUTBALAI STEAM AVAILABLE 90MW ON GOING EXPLOITATION BIDDING PROCESS EPCC 55MW KAMOJANG (200 MW) STEAM AVAILABLE 240 MW OPERATION 200MW EPCC 35MW Additional Install Capacity by Years 2015-2022 Kamojang Lahendong Sibayak Ulubelu Lumut Balai Hululais Kotamobagu Sungai Penuh Karaha SPN 2 (55 MW) LMB 3&4 (110) 200 1057 892 235 235 120 12 120 12 220 HLS 1&2 (110 MW) LMB 1&2 (110 MW) LHD 5&6 (40MW) KRH 1 (30MW) 727 UBL 3&4 (110 MW) KMJ 5 (35 MW) 402 SPN 1 (55 MW) 547 235 235 120 12 437 837 235 120 12 220 220 220 235 80 12 80 12 110 80 12 110 220 2014 2015 2016 SOURCE: Pertamina Geothermal Energy 220 110 110 110 110 110 110 30 30 2017 2018 55 30 2019 110 30 2022 Upcoming Greenfields Development Plan Name of Prospect Area Ins. Capacity (MW) Kotamobagu Sumatera Island Medan 1 2 3 4 WKP Sungai Penuh 1. Semurup WKP Hululais – Tambang Sawah 1.Tambang Sawah 2.Bukit Daun WKP Lumut Balai 1. Margabayur WKP Ulubelu – Way Panas 1. Way Panas 40 70 110 6 120 50 30 WKP Iyang Argopuro 1. Iyang Argopuro 55 WKP Kotamobago 1. Kotamobago MAGMA Tanjung Karang Bandung Semarang Ciharus Masigit-Guntur Iyang Argopuro WKP Kamojang 1.G. Masigit Guntur 2.Ciharus Sulawesi Island 7 Sumurup Tambang Sawah Bukit Daun 75 Margabayur Way Panas Java Island 5 Manado Sinabung 60 Key Barriers To Geothermal Development In Indonesia Description – Higher capital expenditure compared with other power generation technologies High upfront – Cost of USD 35-50 Mln for preliminary studies including exploration wells to prove the reserves capital Uncertain requirement without any external financing economics – Development and exploration costs are solely borne by geothermal company and are not reimbursed by government unlike the practice in oil gas industry Uncertainty – & Implementation of MEMR Decree on Feed In Tariff on pricing requires further negotiation with PLN as a single buyer – Most of the geothermal reserves are located in protected forests and geothermal activities are not allowed to carry out in forest conservation Regulatory areas Uncertain uncertainty environment – Overlapping jurisdictions increases lead time and complexity as local authorities often block the projects approved by the central government – Tariff agreement with PLN often comes back for the renegotiation, hence no guarantee on the Other risks price All these together mean that under the current environment, geothermal development projects are potentially high risk, especially for smaller operators GEOTHERMAL POTENTIAL WITHIN FORESTRY AREAS Geothermal Energy Price Negara USA Tarif (USD/ kWh) Remark 0.19 < 5 MW 0.18 5 MW to 10 MW 0.115 10 MW to 20 MW 0.09 >20 MW Exploration cost and risk taking by government Jerman Filipina Jepang 0.23 < 10 MW 0.15 > 10 MW 0.12 – 0.13 0.46 < 15 MW 0.30 > 15 MW 0.08 – 0.09 Exploration cost and risk taking by government ~ 0.20 Low enthalpy New Zealand Chile 0.2 – 0.3 11 Our Expectancy Government can help and reducing the risk of the developer, by taking exploration risk and/or improving the price of electricity and steam. This is absolutely necessary for successful acceleration for geothermal development in Indonesia. Electricity fixed price policy, bidding process compete in commitment and program. Open access for electricity transmission by toll fee mechanism. Licensing area in forest conservation. The same understanding between the Central Government and Local Government regarding geothermal activity. Fiscal policy (tax and duty exemption on import). Synergy among State Owned Companies (BUMN) in accelerating geothermal development. 12 TERIMA BANGKITKAN ENERGI NEGERI KASIH