Indonesia geothermal power producer PT Pertamina Geothermal Energy (PGE), a unit of state-owned PT Pertamina, will invest $2,5 billion to develop seven geothermal projects, that may be commissioned by 2019.
By 2025, PGE targets a total geothermal capacity of 7,094.5 megawatts (MW) from 437 MW at present.
PGE President Director Irfan Zainuddin said, the company has set aside $644 million for capital expenditure in 2016.
The Indonesia government is targeting to gradually replace fossil fuel-based power plants with renewable energy.
Under the current government programme to generate 35,000 MW, the government plants to build power plants based on renewable energy with total capacity 1,160 MW until 2019. Petramina unit will contribute a significant share of the target.
According to the Energy and Minerals Resources Ministry data, 40 per cent of geothermal reserves—potential reserves pf 27 gigawatt (GW)—and only 1.3 GW has been optimised.
PGE is involved in geothermal exploration and exploitation in 15 working areas in Indonesia: Sibayak-Sinabung, Sibual-buali–Sarulla, Sungai Penuh-Sumurup, Tambang Sawah-Hululais, Lumut Balai, Waypanas-Ulubelu, Cibereum-Parabakti, Pengalengan (Patuha-Wayang Windu), Kamojang-Darajat, Karaha-Telagabodas, Dieng, Iyang-Argopuro, Tabanan-Bali, Lahendong-Tompaso and Kotamobagu.