Indonesia has geothermal potensial is huge, but the management of goethermal energy in indonesia is still low at only 4% which can be exploited. There are factors which become obstacles in utilization of geothermal energy.
These constraints led to management of geothermal unattractive investment. geothermal energy management is not easy, therea are many abstacle in the developmnet of goethermal energy management in Indonesia, among others :
- The existence and character of the geothermal resource. Geothermal energy is generally located at a depth of 1000-2000 meters below ground level is difficult to estimate the presence and character.
- Investment Value.Investment management of geothermal energy not lest because of relatively high tech and risky. Investing for under one MW capacity, ranging from US$ 3000-5000 per kilowatt(kW). As for the above one MW capacity, required US$ 1500-25000 per kW.
- Geothermal is site specific. Geothermal energy is site specific energy, depending on local geological conditions. Character of production and the quality of produktion will differ from one area to another. Rapid decline in production, for example, is a character of production to be borne by the employers or developers, plus the quality is not good, it may cause a lot of problems at he plant. for example . a high gas conten resulted in greater investment in downstream or generator.
- Cheap Sales Price. In power generation, geothermal selling price per Kwh set by the government is considerd too low as not worth the cost of exploration and development of Energy Geothermal Power Plant (PLPP). The price was still below commercial rates.
- Remote Area. Geothermal potential in an arean usually in mountainous and remote area and can not be used for neighborhood because demand for electricity in the area a bit. Exploration of geothermal becomes uneconomical.
- Policy Factors. The Management of geothermal energy is catagorized as mining in UU No.27 tahun 2003. Though many of geothermal potential is located in conversion forest region that not to do mine.
To attract investment in geothermal management, the government is preparing a package to incentive-based policies for encouraging investment in renewable energy sector producer of non-feul-electricity. One of the policies that are put on the feed in trariff, such as fixinfg the selling price of a new geothermal power.
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