GEOTHERMAL ENERGY DEVELOPMENT IN INDONESIA COUNTRY UPDATE 2005 – 2008

Tafif Azimudin UNU Fellow 1995

Jakarta, August 2008

GEOTHERMAL ENERGY

Outline Introduction Geothermal Potential Electricity Usage Geothermal Operator Opportunities And Challenges

 Suryadarma et al, : The progress of geothermal energy resources activities in Indonesia, WGC 2005  Suroto et al, : Geothermal development progress in Indonesia: Country Update, WGC 2000

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An update of the country paper presented by:

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1. 2. 3. 4. 5.

1. Introduction Based on Presidential Decree No 76/2000 and Law No 27/2003  Pertamina has the full authority on Indonesia geothermal business  Pertamina Own Operation on Geothermal development consist of 31 concession areas  Pertamina Partnership on Geothermal development consist of 7 concession areas  Geothermal activity delivered to a Pertamina’s subsidiary company (PT PGE)  PT PGE was no longer given the full authority on Indonesia geothermal business  PT PGE continue to administer the operation of 15 and handed in 16 concession areas. The own operation covers 9 fields and the partnership operation covers 7 fields  The new mechanism of bidding process to get the concession area is applied by Government of Indonesia

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2. New Regime of Geothermal Policy

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1. Old Regime of Geothermal Policy

1. Introduction Pertamina’s Concession Areas

1

14. Lahendong 15. Kotamobagu

2

14 15

3

1. Sibayak-Sinabung

7. Cibereum-P-bakti

5

8. Pengalengan

6

2. Sibualbuali

9. Kamojang -Darajat

3. Sungaipenuh

10. Karaha-Cakrabuana

4. Tbg. Sawah-Hululais 5. Lumutbalai 6. Waypanas Ulubelu

7 Pertamina JOC

8

9 10 11

12

13

11. Dieng 12. Iyang-Argopuro 1 13.3Tabanan

Patuha W. Windu

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4

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Based on : • Keppres RI No. 22 / 1981 • Keppres RI No. 45 / 1991 • Keppres RI No. 49 / 1991 • Keppres RI No. 76 / 2000 • UU Panasbumi No 27/2003

2. Geothermal Potential Indonesia’s Geothermal Potential

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 Located a long the islands, known as “The Ring of Fire”  Total Geothermal Potential ~ 27000 MWe situating from ~250 locations  Resources ~14015MW; Reserves ~12985

2. Geothermal Potential Updating Geothermal Activity Since 2005 up to 2008, FIELDS

PT PGE

EXPLORATION WELLS

EXPLOITATION WELLS

ADDITIONAL POWER PLANT

Kamojang

2

60

Lahendong

5

20

Sibayak Ulubelu

3

Lumutbalai

1

Darajat Salak

STAR ENERGY

Wayangwindu

6 4

110

1 6

Additional 200 MWe power plant to the total installed capacity (1032 MWe) 8 Exploration wells and 20 exploitation wells with a total depth of about 57.5 km

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CHEVRON

10

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OPERATORS

3. Electricity Usage Total energy mix in Indonesia

14.0%

3.0%

GAS 41.0%

COAL OIL BASED

33.0%

9.0%

Total fossil fuel plants is still dominant (88%); Renewable power plants ~12% The total installed capacity from geothermal power plants is about 1032 MWe The largest geothermal installation is located in Salak Field (375 MWE ~36% of the total installed geothermal capacity); operate by Chevron Geothermal Salak

PLN 2007

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HYDRO

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GEOTHERMAL

4. Geothermal Operator SIBAYAK (PERTAMINA) 10 MW

Exploration stage 1476 MW Development stage 612,5 MW

SARULA (MEDCO) 220 MW

Producing stage 1032 MW Joint Operation Contract

LUMUT BALAI (PERTAMINA) 110 MW

SUNGAIPENUH (PERTAMINA) 160 MW

KARAHA BODAS (PERTAMINA) 110 MW

IYANG ARGOPURO (PERTAMINA) 185 MW BEDUGUL (BALI ENERGI) 226 MW

ULUBELU (PERTAMINA) 110 MW

SALAK (CHEVRON) 375 MW

DIENG (GEODIPA) 60 MW

PATUHA (GEODIPA) 170 MW

WAYANG WINDU (MAGMA NUS.) 110 MW

DARAJAT (CHEVRON) 255 MW

LAHENDONG (PERTAMINA) 40 MW

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KAMOJANG (PERTAMINA) 200 MW

KOTAMOBAGU (PERTAMINA) 185 MW

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BUKIT GEDANG - HULU LAIS (PERTAMINA) 500 MW

4. Geothermal Operator FFIELD

1994

1997

2000

2001

2002

2007

2008

TOTAL (MW)

60

200

2 Expt drilling for secure steam supply

40

5 Expt drilling for dev 40MW 20MW at the end of 2008

OPR

1983

1988

ACTIVITIES

Kamojang

PGE

30

110

Lahendong

PGE

20

Sibayak

PGE

2

Ulubelu

PGE

3 Expl drilling for 110MW

Lumutbalai

PGE

1 Expl drilling for 110MW

Hululais

PGE

Env.Study for Expl drilling

Sungaipenuh

PGE

Env.Study for Expl drilling

Kotamobagu

PGE

Env.Study for Expl drilling

Karaha

PGE

Env. Study for 30MW at 2010

PGEs OWN

20

Salak

CGS

180

Darajat

CGI

55

Wayangwindu

MNL

Sarulla

MOIK

Bedugul

BEL

Dieng

GDE

Patuha

GDE

195

95

110

110

375

4 Expl drilling for next dev 1 Expt drilling for secure steam supply

260

6 Expt drilling for secure steam supply

110

6 Expt drilling for add 110MW in 2009 Workover + Expt drilling for 330MW of total capacity dev

60

60

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PGEs JOC

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4. Opportunities & Challenges

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4. Opportunities & Challenges P ihak L ain* (S K Menteri )

C ompanies

Preliminary survey (PS)

DJ MB P

Minis try

Data

Data

WKP Establishment (Prep. , Plan, decide)

WKP tender Offering

B upati

WKP establishment (consult & Input)

WKP establishment (consult & Input)

WKP tender

WKP tender

B idding T eam

Tender arrangement and announcemen t

Offering

Pre-qualification (Assessment & Evaluation)

Terminate

price A

No

Final Assessment & Evaluation

price B If Price A > Price B Right to match with *

Winner

Winner

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administrn Technical Financial

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WKP establishment (consult & Input)

G overnor

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Thanks

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4. Opportunities & Challenges Kota / Kabupaten

Provinsi

Target Pengembangan

1

Seulawah Agam

Aceh Besar

NAD

160 MW

2

Jailolo

Halmahera Barat

Maluku Utara

75 MW

3

Telaga Ngebel

Ponorogo dan Madiun

Jawa Timur

120 MW

4

Gunung Ungaran

Semarang dan Kendal

Jawa Tengah

50 MW

5

Gunung Tampomas

Sumedang dan Subang

Jawa Barat

50 MW

6

Cisolok Cisukarame

Sukabumi

Jawa Barat

45 MW

7

Tangkuban Perahu

Subang, Bandung dan Purwakarta

Jawa Barat

100 MW

8

Jaboi

Sabang

NAD

50 MW

9

Sokoria

Ende

NTT

30 MW

Total

680 MW

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Nama Lapangan

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No

3. Electricity Usage

90%

21%

22%

28%

24%

24%

30%

8% 6%

6% 5%

26%

18%

19%

19%

38%

41%

40%

40%

41%

2003

2004

2005

2006

2007

80% 70%

11% 3%

12% 3%

60% 50%

30%

29%

10% 4%

8% 4%

26%

34%

9% 5%

9% 3% 14%

40% 30% 20%

35%

34%

33%

2000

2001

2002

10% 0%

Coal

PLN 2007

Gas

Geothermal

Hydro

Oil

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27%

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100%

4. Geothermal Operator

PGE PGE PGE PGE PGE PGE PGE PGE PGE

1983 1988 1994 1997 30

110

2000 2001 2002 2006 2007 2008 Total MWe 252 60 20 20 2 10

780 CGS CGI MNL M+O+I+K BEL GDE GDE

180 55

195 70 110

110

60 1032

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Total MWe

Operator

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Field Own Operation Kamojang Lahendong Sibayak Lumutbalai Ulubelu Hululais Sungaipenuh Kotamobagu Karaha JOC Salak Drajat Wayang Windu Sarulla Bedugul Dieng Patuha