Transcript Document
Geothermal National Capacity Building : A Case Study of Industry Collaboration Mr. John Hansen Director, USAID Environment Office IIGCE 2014 June 5, 2014 Indonesia is at a crossroads in energy sector development... On the one hand, demand for energy is growing rapidly… • Limited access to modern energy is hampering access to prosperity-- electrification ratio in 2011 was at 73%*). • GOI has set an ambitious target of increasing electrification ratio to 95% of the total number of house hold by year 2025. • This will require an average of 1.3 million new connections annually. *) MEMR estimated figure in 2012 based on number of households electrified, including non-PLN consumers Which is currently leading to an increased reliance on coal, gas, and renewable resources from oil… Total Energy Production • • Energy and power supply dominated by fossil fuels (95% of total energy, 90% of electricity). Oil and natural gas (LNG) production are significant source of export earnings and foreign investment. Hdyro 1% Coal 24% Geothermal 3% Oil 50% Gas 22% Electric Power Production • Demand required to achieve projected GDP growth by 2030 may require a tripling or more of current production. Coal 26% Gas 13% Hdyro 8% Geothermal 2% Oil 51% On the other hand, the GOI has set ambitious GHG mitigation goals… In this environment, geothermal is a win-win • Current capacity ~ 1,200MW*) • Expected additional capacity in next 10 years ~ 6,300MW**) • Less than 3% of total potential But there are challenges: o Technology in upstream development ~ higher risk o Regulatory framework ~ tender mechanism, tariff setting, site permits o Access to financing ~ upfront pre-development o Adequate human resources capacity ~ engineers, earth scientists, operators, policymakers, etc. *) MEMR Statistics 2011 **) PLN Long Term Development Plan/RUPTL 2012-2021 Why a public-private partnership? Geothermal Industry • Uncertain regulatory environment • Exploration costs • Access to financing USAID • Support transition to cleaner energy sector • Strengthen higher education, science, and technology • Significant US geothermal expertise Strengthen HR capacity of geothermal sector Challenges in Human Resources Capacity Development Quantity and Quality o 50 full time staff per 1,000MW* o Additional 300 geothermal engineers needed by 2021 o More so during development phase Comparatively limited programs in Indonesian universities with respect to oil and gas exploration In-house development by established geothermal companies (“existing pool”) Limited number of experienced people ~ high movement from one company to others Lack of research center with strong linkage to geothermal industry * estimation from Indonesia Geothermal Association and Ministry of Energy. University Partnership on Geothermal Education Capacity Building (UP – Geothermal) • Implementing Partner: University of Southern California, with Bandung Institute of Technology and PT Star Energy • Period of Implementation: November 2011 – January 2015; • Objectives: to build capacity for the geothermal educational program at ITB to provide opportunities for US university to partner with Indonesian university in developing and expanding geothermal education programs direct industry input into education initiatives through private sector involvement Activities to date Advisory Board Members: Dirjen EBTKE-ESDM, Star Energy, Pertamina Geothermal Energy, Indonesian Geothermal Association (“INAGA/API”), Chevron Geothermal Indonesia, Supreme Energy, Schlumberger, and Halliburton . Scholarship for Magister Geothermal Program at ITB: 20 students to date. Geothermal Seminars: Bandung, Padang (2012), Manado (2013), Surabaya, Aceh (2014) New Field Course: Geothermal Data Evaluation Activities to date • Attendence of ITB faculty, staff and students in conferences, seminars, and workshops: API Renewable Energy Conference and Exhibition, GRC NZ Geothermal Workshop. • Training of Trainers: introduction to geothermal, detailed exploration for test site selection, environmental impacts & risk assessment, geothermal data evaluation Each Partner Brings Different Resources • • • Curriculum/teaching Program implementation Technical expertise Universities (ITB/USC) Geothermal Industry • • • • Needs identification Locations for field trips, internships Employment for graduates Financial resources USAID • • • Program design expertise Access to US university/industry expertise Financial resources Where Does the Partnership Go from Here? • UP has been a proof-of-concept • But the intersection between USAID’s and the industry’s interests are bigger than what’s been done thus far. • Summer 2014, INAGA, USAID, and the industry will be scoping out the next phase: – Including possibilities for non-degree training, training for regulators/financiers, research centers • We’re looking for partners! For more information, please contact: USAID Indonesia: Ashley King, Climate Integration Team Lead, [email protected] Retno Setianingsih, Energy Specialist, [email protected] University of Southern California: Fred Aminzadeh, Research Professor, [email protected] Indonesian University - Institut Teknologi Bandung (ITB): Nenny Miryani Saptadji, Head of Geothermal Graduate Program, [email protected] Private Sector Support - Star Energy Ltd.: Sanusi Satar, Senior Representative Management, [email protected] TERIMA KASIH