Unearthing the Dynamics of Indonesia’s Geothermal Energy Development

Satya Widya Yudha, Benny Tjahjono and Philip Longhurst
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Satya Widya Yudha: School of Water, Energy and Environment, Cranfield University, Cranfield, Bedford MK43 0AL, UK
Benny Tjahjono: Centre for Business in Society, Coventry University, Coventry CV1 5FB, UK
Philip Longhurst: School of Water, Energy and Environment, Cranfield University, Cranfield, Bedford MK43 0AL, UK

Energies, 2022, vol. 15, issue 14, 1-18

Abstract: Indonesia has one of the world’s biggest geothermal energy reserves, accounting for 28.61 Gigawatts of electric energy (GWe). However, as of 2022, the installed geothermal capacity in Indonesia was only around 2.175 GWe, just 7.6% of its estimated potential. Geothermal energy development is required for Indonesia to empower sustainable energy systems and achieve its target of reaching 7.2 GW of geothermal energy by 2025. The geothermal energy sector is viewed as a complex dynamic system, with complicated challenges, including technical, financial, infrastructure, and many other issues. The purpose of this paper is to understand the complex nature of geothermal systems in Indonesia. To that end, this paper examines the geothermal development from a systematic and holistic standpoint, employing the interview technique to enable the conceptualization of the geothermal systems using the system dynamics (SD) approach. The SD model exhibits several underlying and important factors influencing the development of geothermal energy in Indonesia, such as capital investment, the collection of upstream data to reduce risk, infrastructure construction, pricing, incentives, permit procedures, environmental concerns, and public acceptance.

Keywords: geothermal; Indonesia; interview; system dynamics (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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