(OVER VIEW)
Sigit Rahardjo
Operation Director
PT PERTAMINA GEOTHERMAL ENERGY
GEOTHERMAL ENERGY
CHARACTERISTIC OF GEOTHERMAL BUSINESS
1
GEOTHERMAL ENERGY
INDONESIA HAS THE HIGHEST POTENTIAL FOR GEOTHERMAL
ENERGY IN THE WORLD
Conventional geothermal 2010 capacity and Resource
total potential capacity Utilization
GW %
Indonesia 1 • 27 • 28 4
• In spite of its world’s
U.S. 3 • 20 • 23 13 largest potential of
geothermal resource,
Japan 1 • 19 • 20 3 the utilization only
remains 4%
Others1 2 • 18 • 20 10
• Geothermal resource
Philippines 2 • 4 • 6 33 in Indonesia is also
high temperature
Mexico 1 • 5 • 6 20 resource which
enable more
Iceland 1 • 5 • 6 10 economical
geothermal
1•
New Zealand 3• 4 16 development project
Manado
Tanjung Karang
Semarang
Bandung
Java Papua
Speculative : 9.471 MWe Speculative : 50 MWe
Probable * : 3.086 MWe Bali & NTT MAGMA
Probable * : - MWe
Geothermal location
Speculative : 1.676 MWe
Probable * : 871 MWe
3
GEOTHERMAL ENERGY
GEOTHERMAL ROAD MAP
(Based on President Decree No. 5/2006 on National Energy Policy; Modified by MEMR.REG. No. 15/2010)
1.337 MW
Current Condition 5171 MW
Plus The second 10,000
MW fast track program
Ministry decree MEMR
No. 15/2010
4
GEOTHERMAL ENERGY
PERTAMINA AIMS TO BE A LEADER IN GEOTHERMAL
DEVELOPMENT
Geothermal development by operator type
Capacity Share of SOE
1
GW SOE Private %
14
13
2
3
4
5
6
6
GEOTHERMAL ENERGY
GEOTHERMAL DEVELOPMENT CONCEPT
PROJECT MANAGEMENT,
ECONOMIC APPROACH
BUSINESS PORTFOLIO
GGGR, OPERATIONAL,
RISK ASSESSMENT,
TECHNICAL ASPECT
IMPLEMENTATION
LEGAL ASPECTS
MAINTENANCE
ENV MGT
1000 MW :
42.250 BOEPD
6.1 JT TON CER”S/YEAR
7
GEOTHERMAL ENERGY
IDEAL GEOTHERMAL BUSINESS PROCESS IN INDONESIA
COD
PRICE AND CONTRACT
HEAD OF AGREEMENT US$
NEGOTIATION
Notice Of Intend to
Notice Of Resorces Confirmation
Develop
EXPLOITATION
• AMDAL (EIA)
• Location Permit
• Land Usage Permit
• SIPPA (Surface Water Usage
EXPLORATION Permit)
• IMB (Construction Permit)
8
GEOTHERMAL ENERGY
Pertamina aspires to achieve by 2015
•MW
2,295 2,445 2,505
2,090
1,508
•Steam
Availability 823
610
•K Boepd
112 119 122
102
•Oil 73
equivalent 40
30
9 GEOTHERMAL ENERGY
KEY BARRIERS TO GEOTHERMAL DEVELOPMENT IN INDONESIA
Description
• Higher capital expenditure compared with other power
generation technologies
High upfront • Cost of USD 35-50 Mn for preliminary studies including
capital exploration wells to prove the reserves without any
Uncertain requirement external financing All these together
economics • Development and exploration costs are solely borne mean that under
by geothermal company and are not reimbursed by
government unlike the practice in oil & gas industry
the current
• Implementation of MEMR Decree on Feed In Tariff environment,
Uncertainty
requires further negotiation with PLN as a single buyer geothermal
on pricing
development
• Most of the geothermal reserves are located in projects are
protected forests and geothermal activities are not potentially high
allowed to carry out in forest conservation areas risk, especially for
Regulatory • Overlapping jurisdictions increases lead time and
Uncertain smaller operators
uncertainty complexity as local authorities often block the projects
environ- approved by the central government
ment • Tariff agreement with PLN often comes back for the
renegotiation, hence no guarantee on the price
GEOTHERMAL ENERGY
PGE GEOTHERMAL FIELDS UNDER JOC SCHEME
GEOTHERMAL ENERGY
UPCOMING GREENFIELDS DEVELOPMENT PLAN
Kotamobagu
Ins. Capacity
Name of Prospect Area
(MW) Medan
Sumatera Island
Manado
15
GEOTHERMAL ENERGY