Part 8: First Step of Geothermal Power Plant Development in Indonesia

In Thailand, development and usability of geothermal energy is in very early stage comparing with other countries. Because of most geothermal energy sources in the world are found in the zone called “The Ring of Fire” which located around Pacific Ocean to Sumatra in ASEAN. As many areas in the Philippines, Indonesia and New Zealand are the examples of suitable area using geothermal energy as fuel for electricity generation.

Meanwhile, Indonesia is the world's third largest geothermal electricity producer which could generate electricity up to 27,000 MW, that’s why EGCO Group, the first Independent Power Producer, has seen the opportunity to extend power business in Indonesia by investing 20% of shareholding in a joint venture which has operated in the geothermal power plantcalled “Star Energy”, since October 2014.

Star Energy power plant has a total installed capacity of 227 MW. It comprises 2 power units, 110 MW and 117 MW, which has been started to commercially operate from 2000 and 2009 respectively under long term Energy Sales Contract with an Indonesian government-owned electricity corporation. This power plant is the first geothermal power plant that EGCO Group has invested with another right to sell electricity up to 400 MW as an opportunity to extend the installed capacity in the future.

While consideration about electricity generating process, it's quite similar between fuel from geothermal and general thermal but the difference is we can use high pressure steam from geothermal to directly drive the generator instead of using boiling water from fossil fuels.

So, investing in geothermal power plant as well as other renewable power plant is still an interesting business and could develop as long as we use electricity in our daily life. Renewable energy is such alternative energy which has distinctive features like environmentally friendly and no expiry date.