A Review of The Role of Geothermal Power in Indonesia's Net-Zero Transition: Strategic Pivot or Missed Opportunity?
Keywords:
Carbon Tax, Electricity, Energy Transition, Geothermal, Net-zero Emissions, Renewable EnergyAbstract
Indonesia has geothermal potential reaching more than 23 GW or around 40% of the world's total reserves. However, its utilization until 2023 is only around 11%, far from the national renewable energy target, with geothermal expected to contribute around 7.2% of total primary energy generation capacity target. Geothermal energy offers a strategic solution because it is low-emission and domestically available in line with the context of the commitment towards Net Zero Emissions (NZE) by 2060. The discussion in this paper will examine the actual and prospective role of geothermal energy in Indonesia's energy transition by reviewing the policy framework, implementation challenges, and potential utilization in the future. Then, various obstacles such as high initial investment costs, regulatory complexity, and infrastructure limitations still hamper the acceleration of geothermal development. However, policy support, such as the implementation of carbon taxes and restrictions on coal-fired power plants, provides momentum for geothermal to take on a strategic role. This study also reviews comparisons with countries such as the Philippines and Iceland that have succeeded in optimally utilizing geothermal potential. The results of the study emphasize that the acceleration of geothermal development is very important to support the decarbonization of the electricity sector, strengthen energy security, and realize a clean and sustainable national energy system.
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