PGE Eyeing Two-folds Increase in Geothermal Development by 2026

TEMPO.CO, Jakarta - PT Pertamina Geothermal Energy (PGE), a subsidiary of state-run oil firm PT Pertamina, has outlined a target to double geothermal power development to 1.1 gigawatts (GW) by 2026.

"In the next five years, we will strive to achieve the target of 1.1 gigawatts (GW) of installed capacity," CEO Subholding Power & New Renewable Energy PGE Dannif Danusaputro noted in a statement here on Wednesday.

Currently, the installed capacity of the Geothermal Power Plant that PGE operates alone reaches 672 MW. The company will maximize the geothermal potential in its 15 working areas across Indonesia to boost the development of environment-friendly electricity.

In addition to PGE’s operations, Pertamina manages geothermal energy with partners through a joint operation contract, with an installed capacity of 1.2 GW.

With the overall management of geothermal development, Pertamina is expected to guarantee that energy requirements are fulfilled by clean energy in the future.

"With the support of all stakeholders, geothermal development would be continued optimally, including through a partnership scheme," Danusaputro stated.

According to the Agency for the Assessment and Application of Technology (BPPT), the potential of geothermal energy in Indonesia is the largest, equivalent to about 29.5 GW.

However, its installed capacity has only reached 2.1 GW, the second-largest after the United States that has an installed electricity capacity from geothermal energy of 3.6 GW.

PGE remains committed to increasing the production of geothermal-based energy in the national program in its primary energy mix to 23 percent by 2025.

The company has contributed 88 percent to Indonesia's installed electricity capacity from geothermal energy, with the potential to reduce the annual carbon dioxide emissions cap to 9.5 million tons per year.

President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama affirmed that renewable energy is the future of the company, so the development strategy for environment-friendly electricity, especially geothermal energy, must be supported as a source of alternative energy.

"Renewable energy is the future business for Pertamina. Hence, the development of geothermal energy as one alternative, and clean energy should be supported and continue to grow," Purnama emphasized.

Read: Pertamina Earmarks US$2.68bn for Geothermal Investment

ANTARA