Indonesia pushes for increased geothermal power generation

Indonesia and the Philippines, two countries located along the seismically active Ring of Fire, are among the largest users of geothermal energy in the world. These countries possess significant geothermal energy potential, making them prime candidates for transitioning from fossil fuels to renewable energy sources. As of now, geothermal capacity in the Philippines accounts for 14.6% of the nation's energy use, with plans for expansion to almost double its current output. Indonesia is also working to enhance its geothermal energy production, targeting an increase of at least 8% by 2030, reinforcing its position as a major contributor to renewable energy. Despite these promising initiatives, significant hurdles exist in terms of exploration and development costs, which hinder investment attractiveness in both nations. Exploration, crucial for assessing potential geothermal sites, carries substantial financial risks that developers typically cannot shoulder alone. Financial strategies such as blended financing involving public and private sources could offer necessary support to bridge this gap. Concurrently, regulatory adjustments are necessary to expedite permitting processes and create favorable conditions for investors. Community opposition has emerged as another challenge, particularly in the Philippines, where local protests against geothermal projects have led to companies negotiating royalties with Indigenous groups. For successful geothermal project implementation, engaging and listening to community concerns is essential, emphasizing that development benefits should extend beyond corporate interests. The collaborative efforts of government officials and businesses are vital to ensure a socially responsible approach toward geothermal energy development, prioritizing community engagement as a central tenet of future projects.