CDM Potential in Geothermal Power Sector in Indonesia

Abstract

Climate change issues have become one of the current issues in the world, including Indonesia. As energy sector is claimed as one of the major sources of greenhouse gasses emission, energy sector pose a potential for emission reduction, particularly through utilization of renewable energy. Renewable energy sources, such as geothermal is considered as a solution to substitute carbon-intensive energy, as it emits almost no greenhouse gasses emission. Indonesia which is located on the volcanoes ring of fire has a huge geothermal potential, approximately 27 GW or about 40% of the world geothermal potential.

The government of Indonesia plans to develop this potential to fulfill Indonesia’s energy needs, particularly for electricity. Based on Presidential Regulation No. 5 year 2006 concerning National Energy Policy, it is targeted that at least 5% of national primary energy mix will be based on geothermal. Accordingly, Geothermal Development Roadmap has been set up and it will develop 9500 MW geothermal power plant up to 2025. This implementation will be a great opportunity not only in fulfilling the energy needs, but CDM projects proposal for a huge number of emission reduction could also take place. Since 2006, there are only 6 (six) geothermal projects in the world that have been proposed and registered as CDM projects, one of which is Darajat III in West Java, Indonesia.

This paper will explore the potentials and barriers in developing geothermal power plant projects in Indonesia as CDM projects.1.