Geothermal as the Solution for Indonesia’s Electricity Shortage: How Does Indonesia’s Political Condition and Policies Affecting It?
Geothermal as the Solution for Indonesia’s Electricity Shortage: How does Indonesia’s Political Condition and Policies affecting it?
Introduction
The current condition arises within Indonesia is the electricity shortage. This can be seen as numbers of black outs happens in every part of Indonesia’s region of which conducted due to save the electricity reserves. Such problems happen because as an abundance country in which very rich with natural resources, including the source of potential energies that can be generated as electricity, Indonesia’s electricity production concentrates more on the conventional thermal sources—oil, natural gas and coal. By looking at the world reserves of these conventional thermal sources, Indonesia’s oil reserve is only 0.6 percents from total world reserve, Indonesia’s gas reserve is only 1.4 percents and coal reserve is only around 3.1 percents from the total world reserve. Thus, we cannot say that Indonesia is poor in fossil fuel energy, indeed. However, we are very far than rich of it. But then, the cliché condition is that we put fossil fuel as a primary resource to produce electricity (look at Table 1 and Table 2). Malla (1993) stated that the fossil fuels provide at least 59% of total energy consumption in 1974 to 63% in 1992 (excluding Vietnam). This dependence on fossil fuels is greatest in relatively more developed economies (based on country’s per capita GDP) in South East Asia (SEA) such as Brunei, Indonesia, Malaysia, Singapore, and Thailand, where over 80% of all energy needs for power generation in 1992 are provided by fossil fuels, compared with about 45% in less developed economies (for e.g., Myanmar, Philippines, and Vietnam). And that is what has leaded us to electricity shortage today[1]. Moreover he also stressed out that among the type of fossil-fuel intensities; Indonesia has the highest average oil intensity during the period of 1983-92. Though later Indonesia then makes a
Introduction
The current condition arises within Indonesia is the electricity shortage. This can be seen as numbers of black outs happens in every part of Indonesia’s region of which conducted due to save the electricity reserves. Such problems happen because as an abundance country in which very rich with natural resources, including the source of potential energies that can be generated as electricity, Indonesia’s electricity production concentrates more on the conventional thermal sources—oil, natural gas and coal. By looking at the world reserves of these conventional thermal sources, Indonesia’s oil reserve is only 0.6 percents from total world reserve, Indonesia’s gas reserve is only 1.4 percents and coal reserve is only around 3.1 percents from the total world reserve. Thus, we cannot say that Indonesia is poor in fossil fuel energy, indeed. However, we are very far than rich of it. But then, the cliché condition is that we put fossil fuel as a primary resource to produce electricity (look at Table 1 and Table 2). Malla (1993) stated that the fossil fuels provide at least 59% of total energy consumption in 1974 to 63% in 1992 (excluding Vietnam). This dependence on fossil fuels is greatest in relatively more developed economies (based on country’s per capita GDP) in South East Asia (SEA) such as Brunei, Indonesia, Malaysia, Singapore, and Thailand, where over 80% of all energy needs for power generation in 1992 are provided by fossil fuels, compared with about 45% in less developed economies (for e.g., Myanmar, Philippines, and Vietnam). And that is what has leaded us to electricity shortage today[1]. Moreover he also stressed out that among the type of fossil-fuel intensities; Indonesia has the highest average oil intensity during the period of 1983-92. Though later Indonesia then makes a
References: Advameg, Inc. 2009. Volcano. [Online] 2009. [Cited: November 15, 2009.] http://www.scienceclarified.com/landforms/Ocean-Basins-to-Volcanoes/Volcano.html. Deloitte Department of Energy Development. 2008. Geothermal Risk Mitigation Strategies Report. [Online] February 15, 2008. [Cited: November 17, 2009.] http://www1.eere.energy.gov/geothermal/pdfs/geothermal_risk_mitigation.pdf. Energy Infomation Administration. 2007. Indonesia Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal. [Online] 2007. [Cited: November 14, 2009.] http://www.eia.doe.gov. Geothermal Education Office (GEO). 1997. Indonesia. [Online] October 11, 1997. [Cited: November 15, 2009.] http://geothermal.marin.org/map/indo.html. Gupta, Rajat. 2009. Indonesia - Time to tap the ring of fire . [Online] July 16, 2009. [Cited: November 16, 2009.] http://www.frost.com/prod/servlet/market-insight-top.pag?Src=RSS&docid=173797191. Ibrahim, Riki F, R.Sukhyar and Kuncahyo, Ronggo. 2005. Future of Geothermal Development in Indonesia. [Online] April 24, 2005. [Cited: November 16, 2009.] www.docstoc.com/.../Future-of-Geothermal-Development-in-Indonesia . Malla, Sunil. 1993. ENVIRONMENTAL IMPLICATIONS OF FOSSIL-FUEL BASED ELECTRICITY GENERATION IN SOUTH-EAST ASIA COUNTRIES. [Online] 1993. [Cited: November 14, 2009.] http://www2.hawaii.edu/~malla/research/file-12.pdf. OECD/IEA. 2007. Indonesia Energy Issues . [Online] 2007. [Cited: November 14, 2009.] http://www.geni.org/globalenergy/library/energy-issues/indonesia/index.shtml. Praptono, Bambang. 2008. Business Opportunity in Indonesia Electricity Sector. [Online] August 12, 2008. [Cited: November 15, 2009.] www.senternovem.nl/.../Energy%20private%20sector%20in%20Indonesia_tcm24-288060.pdf . Secondary Infobook. 2008. Geothermal. [Online] June 3, 2008. [Cited: November 15, 2009.] http://www.need.org/needpdf/infobook_activities/SecInfo/GeothermalS.pdf. Simkin, T and Siebert, L. 1994. Volcanoes of the World: Volcanoes of Indonesia. Global Volcanism Program. [Online] 1994. [Cited: November 15, 2009.] http://www.volcano.si.edu/world/region.cfm?rnum=06&rpage=highlights. Tumiwa, Fabby. 2008. Indonesia Energy (In)security. [Online] August 28, 2008. [Cited: November 15, 2009.] http://www.rsis.edu.sg/nts/Events/energy%20workshop/conf%20report%20web/Session%203.%20Indonesia%20Energy%20Security.Fabby.ppt.. US Embassy. 2002. Energy News: Indonesia 's Geothermal Development. [Online] February 15, 2002. [Cited: November 17, 2009.] http://jakarta.usembassy.gov/econ/geothermal.html. Source: Malla (1993) Table 2: Total Fossil Fuels Consumption (thousand toe) for Selected Years and Average Annual Growth Rate (AAGR) for Fossil Fuels, 1974 -1992 (%). [pic] Source: Malla (1993) Source: (Tumiwa, 2008) Table 4: Renewable Energy Industry Risk Overview Source: Deloitte Department of Energy Development (2008) Table 5: Indonesia’s Electricity Demand Growth Prediction[2] Figure 1: Indonesia Evolution of Electricity Generation by Fuel, 1971-2005 [pic]Source: OECD/IEA (2007) Figure 2: Indonesia’s Oil Production and Consumption, 1986-2006 [pic] Source: OECD/IEA (2007) Figure 4: Indonesia’s Primary Challenges in Electricity Sector Source: Praptono (2008) Figure 5: Indonesia’s Projected Additional Generation Capacity[3] [2] Cited from Praptono (2008) [3]Cited from Praptono (2008)