Indonesia:

Indonesia Clears Path for Geothermal Energy (Reuters)

Indonesia plans 25 tenders for new geothermal sites next year

(Courtesy CIA.gov)

Indonesia has unveiled ambitious targets to triple geothermal power output this decade, introducing a series of land and regulatory reforms aimed at becoming the world's largest producer of the fossil fuel alternative. Indonesia aims to up its capacity by 4.9 GW by 2019.

Yet progress has been slow due to red tape, uncompetitive power tariffs and uncertainty over asset ownership. The 25 years it has taken from the planning stage to breaking ground on its latest project show the formidable barriers the sector faces.

The government says reforms to curb the power of regional authorities to intrude on projects, as well as to make it easier to build in forest areas, should accelerate development of 25 project sites due for tender in early 2015.

"There are no more obstacles in this sector. It's time for us to work. It is a business opportunity," said Tisnaldi, director of geothermal, directorate general of renewable energy and energy conservation at the energy and mines ministry.

Indonesia's plans could see geothermal meet 10 percent of power demand by 2020, up from 3 percent today. Currently about half of power supplies are met by coal, a fuel it is keen to use less in order to boost exports. Gas makes up about 20 percent and oil 12 percent.

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