Beyond Electricity: Geothermal Direct Use Business Models and Potential Applications in Indonesia

Abstract

The direct application/direct use of geothermal energy involves using the heat energy from the Earth's interior immediately, bypassing the need to convert it into electricity or other energy forms. This approach to harnessing geothermal energy is increasingly recognized for its sustainability and renewable nature, offering a promising solution to diverse energy requirements. However, the focus on utilizing geothermal resources has predominantly been on electricity generation, leaving the direct use of geothermal energy in areas beyond power production less explored. In Indonesia, despite its vast geothermal potential, the progress in developing direct use geothermal facilities has been minimal, with no significant developments reported since 2015. This is in stark contrast to the country's geothermal power generation sector, which ranks second globally in installed capacity, only behind the United States. This disparity suggests a notable oversight in the exploration of geothermal energy for direct applications in Indonesia. This study aims to explore and analyze potential business models that could utilize geothermal energy for direct use in Indonesia, along with assessing the feasibility of these applications across various geothermal regions within the country. By employing a comprehensive research methodology that includes reviewing existing literature, conducting case studies, and interviewing industry experts, the study seeks to gather in-depth insights into the current state and future possibilities of geothermal direct use. An essential part of this research involves examining Indonesia's regulatory and policy landscape surrounding geothermal energy, identifying both barriers and opportunities for the development of direct use projects. The analysis underscores the importance of establishing supportive policies, offering incentives, and fostering stakeholder collaboration to encourage the expansion of geothermal direct use initiatives. Additionally, the study evaluates the economic feasibility of different business models for geothermal direct use, taking into account market demand and sustainability considerations. Ultimately, this research aims to shed light on the economic, environmental, and social benefits of geothermal direct use, advocating for customized strategies and policy backing to ensure successful implementation. The findings of this study are intended to lay a foundational groundwork for policymakers, investors, and industry stakeholders to recognize and leverage the untapped potential of geothermal energy for direct use in Indonesia, potentially leading to a more diversified and sustainable energy sector.