Geothermal Development in Aceh, Indonesia: Challenges and Prospect

Abstract

Aceh is a special province in Indonesia which is authorized to regulate and manage its government affairs and the interests of its local community. The Government of Aceh can manage its own natural resources including geothermal development. Geologically, Aceh is located in the boundary zone of the Eurasian plate and the Indo-Australian plate which are parts of the world’s so called ring-of-fire. One of the impacts of this tectonic structure; Aceh has a lot of volcanoes and huge renewable (geothermal) energy potential. Geothermal energy potential in Aceh is around 1,357 MWe spread over 15 locations. However, until now, none of geothermal power plants have supplied electricity in Aceh. Nowadays, Aceh have 3 geothermal fields ready to be developed. The areas have been tendered, namely Jaboi and Seulawah Agam. Another area is preparing for the tender namely Geureudong. There are still 12 locations of geothermal resources that can be developed immediately. The peak load of electricity demand in Aceh was around 424 megawatts (MW) in 2018, and it is estimated that in 2028 it will be 1,007 MW (with an average growth of 6.94% / year). To anticipate the increase in electricity peak load, the Government of Aceh is committed to develop clean and renewable energy sources in order to fulfill the electricity needs of the people and industries in Aceh. One of green and renewable energy sources is geothermal development. This paper will review the progress and government regulations of geothermal development in Aceh as well as identify its challenges and future prospects. The methodology used is a qualitative approach with the focus on literature review and secondary data.