The Technology Application and Study Agency (BPPT) said geothermal is clean and more efficient to generate electricity.
“Unlike coal, geothermal energy causes no cause damage to the environment,” says Unggul Priyanto deputy chief of information technology of BPPT said .
Geothermal energy is cleaner as it issue no carbon dioxide (CO2) that would add to global heating, Unggul said here on Sunday.
Unggul was defending the government’s decision to raise the selling price of geothermal power from 9.7 US cent to 10-17 cents per kWh .
The price rise, which will give greater profit margin for investors, is expected to encourage investment in the geothermal power industry .
Price disagreement has prevented investors from implementing their projects in geothermal power industry.
All geothermal power generated by any investors is to be bought by state electricity company PLN at a pre-set prices depending on production cost.
Indonesia wants to rely more on renewable energy sources, mainly geothermal, in meeting its growing demand for energy.
The country, which is known to hold the world’s largest geothermal reserves, has so far utilized only 40 percent of its geothermal reserves, Unggul said.
He said the country has geothermal reserve potentials to generate 29,038 megawatts of electricity equivalent to 1.1 million barrels per day.
However, fossil energy is more effective as production could be any place and larger scale, he said.
Most geothermal reserves are found in mountains, therefore, production facility has to be built in the same location.
The cost of building the production facility and transmission systems would be higher, Unggul said.
In addition, plans to build geothermal power plants are often in conflict with regulations as most of the reserves are found in protected forest areas.
Meanwhile, lawmaker Dewi Aryani, said the government should issue a comprehensive regulation on energy to forestall shortages in the country’s fossil fuel-based energy.
The country’s fossil fuel energy sources are depleting fast due to growing demand for energy, Dewi said.
She said the government could seek cooperation from countries which have experience in the development of renewable energy.
