FOR INDONESIA IN NATIONAL ENERGY POLICY GEOTHERMAL ENERGY DEVELOPMENT STRATEGY FOR INDONESIA IN NATIONAL ENERGY POLICY Rinaldy Dalimi Professor of University of Indonesia Member of National Energy Council Republic of Indonesia Universitas Indonesia, 25 Oktober 2016

National Energy Policy (KEN-2050) Pasal 5 : National Energy Policy is an energy management policy based on the principles fairness, sustainable, and environmentally-friendly in order to create Energy Independence and National Energy Security.

National Energy Policy (KEN-2050) Pasal 5 : National Energy Policy is an energy management policy based on the principles fairness, sustainable, and environmentally-friendly in order to create Energy Independence and National Energy Security. Energy independence is ensuring the availability of energy by utilizing maximumly the potensial of domestic energy sources

National Energy Policy (KEN-2050) Pasal 5 : National Energy Policy is an energy management policy based on the principles fairness, sustainable, and environmentally-friendly in order to create Energy Independence and National Energy Security. Energy independence is ensuring the availability of energy by utilizing maximumly the potensial of domestic energy sources Energy security is a condition ensuring the availability and people’s access to energy at affordable prices.

ENERGY DEVELOPMENT PRIORITY Maximizing the use of renewable energy.

ENERGY DEVELOPMENT PRIORITY Maximizing the use of renewable energy. Minimizing the use of petroleum

ENERGY DEVELOPMENT PRIORITY Maximizing the use of renewable energy. Minimizing the use of petroleum Optimizing the utilization of natural gas

ENERGY DEVELOPMENT PRIORITY Maximizing the use of renewable energy. Minimizing the use of petroleum Optimizing the utilization of natural gas Using coal as the balance of the national energy supply.

ENERGY DEVELOPMENT PRIORITY Maximizing the use of renewable energy. Minimizing the use of petroleum Optimizing the utilization of natural gas Using coal as the balance of the national energy supply. Consider nuclear energy as a last choice.

ENERGY MIX TARGET TO 2050 Energy Total: 194 MTOE Power Plant: 51 GW NRE Oil Gas Coal 23% 2,500 Kwh/ Cap. 30% 25% Energy Total: 194 MTOE Power Plant: 51 GW Energy Total: 1.000 MTOE Power Plant: 430 GW 22% 2014 2025 2050 Energy Total: 400 MTOE Power Plant: 115 GW 5% 31% 46% 31% 25% 7,000 Kwh / Cap. 18% 20% 24%

The Chracteristic of Geothermal Geothermal Energy can not be transferred or exported The geothermal power plant have to be used as a base load There should be a Power Purchase Agreement (PPA) before activities Investor generally calculate the cost of production using the highest number of drilling failure rates with lowest potential numbers

The Chracteristic of Geothermal Geothermal Energy can not be transferred or exported The geothermal power plant have to be used as a base load There should be a Power Purchase Agreement (PPA) before activities Investor generally calculate the cost of production using the highest number of drilling failure rates with lowest potential numbers

The Chracteristic of Geothermal Geothermal Energy can not be transferred or exported The geothermal power plant have to be used as a base load There should be a Power Purchase Agreement (PPA) before activities Investor generally calculate the cost of production using the highest number of drilling failure rates with lowest potential numbers

The Chracteristic of Geothermal Geothermal Energy can not be transferred or exported The geothermal power plant have to be used as a base load There should be a Power Purchase Agreement (PPA) before activities Investor generally calculate the cost of production using the highest number of drilling failure rates with lowest potential numbers

STRATEGIC POLICIES Allocating financing geothermal development through the state capital participation (PMN) to BUMN. Assigned BUMN/Public Service Agency (BLU) to develop geothermal plant. Develop reasonable feed-in-tariff policy for geothermal. Drilling conducted by BUMN (drilling failure risk taken by the government), and sells steam to investors. Land acquisition by the government (not by investors) The government would have to subsidize PLN (of taker) if FIT is higher than the electricity tariff.

STRATEGIC POLICIES Allocating financing geothermal development through the state capital participation (PMN) to BUMN. Assigned BUMN/Public Service Agency (BLU) to develop geothermal plant. Develop reasonable feed-in-tariff policy for geothermal. Drilling conducted by BUMN (drilling failure risk taken by the government), and sells steam to investors. Land acquisition by the government (not by investors) The government would have to subsidize PLN (of taker) if FIT is higher than the electricity tariff.

STRATEGIC POLICIES Allocating financing geothermal development through the state capital participation (PMN) to BUMN. Assigned BUMN/Public Service Agency (BLU) to develop geothermal plant. Develop reasonable feed-in-tariff policy for geothermal. Drilling conducted by BUMN (drilling failure risk taken by the government), and sells steam to investors. Land acquisition by the government (not by investors) The government would have to subsidize PLN (of taker) if FIT is higher than the electricity tariff.

STRATEGIC POLICIES Allocating financing geothermal development through the state capital participation (PMN) to BUMN. Assigned BUMN/Public Service Agency (BLU) to develop geothermal plant. Develop reasonable feed-in-tariff policy for geothermal. Drilling conducted by BUMN (drilling failure risk taken by the government), and sells steam to investors. Land acquisition by the government (not by investors) The government would have to subsidize PLN (of taker) if FIT is higher than the electricity tariff.

STRATEGIC POLICIES Allocating financing geothermal development through the state capital participation (PMN) to BUMN. Assigned BUMN/Public Service Agency (BLU) to develop geothermal plant. Develop reasonable feed-in-tariff policy for geothermal. Drilling conducted by BUMN (drilling failure risk taken by the government), and sells steam to investors. Land acquisition by the government (not by investors) The government would have to subsidize PLN (of taker) if FIT is higher than the electricity tariff.

STRATEGIC POLICIES Allocating financing geothermal development through the state capital participation (PMN) to BUMN. Assigned BUMN/Public Service Agency (BLU) to develop geothermal plant. Develop reasonable feed-in-tariff policy for geothermal. Drilling conducted by BUMN (drilling failure risk taken by the government), and sells steam to investors. Land acquisition by the government (not by investors) The government would have to subsidize PLN (of taker) if FIT is higher than the electricity tariff.

THANK YOU The Development of Science and Technology of Geothermal should exist in and come from Indonesia because we have The largest potensial of geothermal resources in the world THANK YOU