Indonesia boasts roughly 40 percent of the world’s total geothermal energy potential. But of the 28,543 Megawatts of geothermal energy potential at the country’s disposal, only 1,189 MW are currently being utilized. That’s all about to change now that the Indonesian government has announced tax incentives for renewable energy projects throughout the island nation in response to the country’s electricity growth rate of 7 percent per year.
“The Indonesian government is therefore offering tax incentives for renewable energy project developers. They have also signed a major memorandum of understanding with General Electric for several joint renewable energy development projects,” said Frost & Sullivan’s Asia Pacific energy and power practice program manager Suchitra Sriram.
Indonesia is currently on track to build 43 new geothermal-fired power plants by 2014. This should be of great interest to any and all power players in the geothermal sector. It was just last year in 2010 that Indonesia hosted the world’s largest geothermal conference, making more than $5 billion in geothermal business deals. The country is planning to become the world’s largest user of geothermal energy, with a target production 4,000 MW within the next four years and 9,000 MW by 2025. Companies with a vested interest in Indonesian geothermal reserves include Suez International Energy, Chevron, Star Energy, and Iceland’s Reykjavik Energy Invest.
Source: Frost & Sullivan