Indonesia aims to tap volcano power

AFP reported that Indonesia has launched an ambitious plan to tap the vast power of its volcanoes and become a world leader in geothermal energy, while trimming greenhouse gas emissions.

The sprawling archipelago of 17,000 islands stretching from the Indian to the Pacific Oceans contains hundreds of volcanoes, estimated to hold around 40% of the world's geothermal energy potential. But so far only a tiny fraction of that potential has been unlocked, so the government is seeking help from private investors, the World Bank and partners like Japan and the United States to exploit the power hidden deep underground.

Mr Surya Darma chief of Indonesian Geothermal Association said that the government's aim to add 4,000 MW of geothermal capacity from the existing 1,189 MW by 2014 is truly challenging.

One of the biggest obstacles is the cost. Indonesia currently relies on dirty coal fired power plants using locally produced coal. A geothermal plant costs about twice as much and can take many more years in research and development to get online. But once established, geothermal plants like the one built in Kamojang, Java, in 1982 can convert the endless free supplies of volcanic heat into electricity with much lower overheads and less pollution than coal.

This is the pay off the government is hoping to sell at the fourth World Geothermal Congress opening on the Indonesian resort island of Bali. The six day event will attract some 2,000 people from more than 80 countries.

Mr Herman Darnel Ibrahim analyst of energy said that an investment of 12 billion dollars is needed to add 4,000 MW capacities putting into context the recent announcement of USD 400 million in financing from lenders including the World Bank and the Asian Development Bank. Field exploration can take from 3 to 5 years, suitability studies for funding takes a year, while building the plant itself takes three years. If there is any country in the world where geothermal makes sense it is Indonesia. Yet despite its natural advantages, it lags behind the United States and the Philippines in geothermal energy production.

Southeast Asia's largest economy and the world's third biggest greenhouse gas emitter exploits only seven geothermal fields out of more than 250 it could be developing. The case for geothermal has become stronger with the rapid growth of Indonesia's economy and the corresponding strain on its creaking power infrastructure.

The archipelago of 234 million people is one of the fastest growing economies in the Group of 20 but currently only 65% of Indonesians have access to electricity. The goal is to reach 90% of the population by the end of the decade, through a two stage plan to fast track the provision of an extra 10,000 MW by 2012, mostly through coal and another 10,000 MW from clean sources like volcanoes by 2014.

(Sourced from http://www.steelguru.com/news/index/2010/04/26/MTQyOTQ4/Indonesia_aims_to_tap_volcano_power.html)

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