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Asia and the Pacific Countries in Asia and the Pacific Islands are poised to make a significant contribution to the growth of the global geothermal industry. High-grade resources and friendly policy environments have resulted in an emergence of advanced-stage geothermal projects that are beginning to attract the expertise of geothermal developers as well as the interest of project financiers. The potential for the development of geothermal resources throughout the region is immense. Countries featuring in the growth of Asia’s geothermal sector are Indonesia, the Philippines, and Japan where state efforts to provide policies and regulatory environments that incentivize the development of geothermal resources are increasingly attracting the interest of geothermal companies throughout the world. Indonesia A rapidly growing economy and increasingly urbanized population are contributing to increased electricity demand in Indonesia. By certain estimates Indonesia’s electricity demand will increase by 7 to 9 percent annually for the foreseeable future. Additionally, it is estimated that approximately 80 million people in Indonesia currently have no access to electricity, giving it one of the lowest electrification rates in the region at 66 percent.16 Indonesia has abundant geothermal resources which it can use to help meet rising electricity demand and increase electrification. With 27,510 MW of potential resources, Indonesia’s estimated conventional hydrothermal geothermal resource base is among the largest in the world. Moreover, most geothermal systems in Indonesia are considered to be high temperature (i.e. >250°C), and ideal for electricity generation. Indonesia is eager to develop its geothermal resources and has set a goal to increase the amount of its installed geothermal capacity to 5000 MW by 2025. Additionally, the Indonesian government has implemented a series of laws and regulations to promote the development of its geothermal resources. In 2003 Indonesia streamlined the regulatory process by which geothermal exploration permits are granted to developers in a competitive bidding process. The country has also implemented laws exempting equipment imported into Indonesia for geothermal development from certain taxes and custom duties. Lastly, in 2011 the Indonesia government required its state-owned utility PT Perusahaan Listrik Negara (PLN)to purchase electricity from geothermal power plants at the maximum price of US$ 0.97/kWh. Indonesia’s geothermal resources have attracted the attention of international geothermal resource development companies as well as the support of its national government. Both Indonesian and foreign companies are developing geothermal resources throughout the country’s islands. Currently, at least 44 geothermal projects are in development in Indonesia. Of these projects, 11 are being developed by PLN, and 33 are being developed by independent power producers. The World Bank is working with the government of Indonesia to fast track two geothermal projects (one on the island of Sumatra and the other on the island of Sulawesi) by providing US$ 300 million in low interest loans to the project.17 May 2012 6PDF Image | Geothermal International Market Report
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