Hotspur Geothermal, as a catalyst developer with world class sub-surface expertise and access to a range of funding options, targets playing a significant role in developing geothermal energy projects in Indonesia.
Hotspur Geothermal is engaging with leading players in the geothermal sector, building value for investors by acquiring a portfolio of geothermal assets across Indonesia. The company will retain a flexible approach to asset acquisition, and will review projects on a case-by-case basis.
Sitting on the ‘Ring of Fire’, Indonesia is believed to contain 30-40% of the entire world’s geothermal resources. A vast archipelago of nearly 20,000 islands stretching more than 5,000 kilometres, with a population of over 260 million inhabitants and consistent, strong economic growth, Indonesia offers an increasingly important market for power production.
Geothermal energy in Indonesia is significant, with around 1,500 MWe of geothermal power capacity already installed. The Indonesian Government has identified over 300 additional sites where geothermal power generation could be developed, and this is prominent in the Government’s ambitious plans to increase power capacity before 2025 - renewable energy is intended to contribute 25% of the 35 GWe of new power capacity planned to be installed by that date.
On the smaller islands of the vast Indonesian archipelago expensive diesel generation is widespread, making geothermal energy a particularly attractive option. As the cost of power to domestic consumers is heavily subsidised, the Indonesian Finance Ministry are keen to see a shift from diesel generation to cheaper forms of generation such as geothermal. In 2016 the Indonesian Government renewed its commitment of reaching 7,240 MWe of geothermal power capacity by 2025, with an intermediate target of deploying 2,500 MWe in 2019. Hotspur Geothermal looks forward to playing a key role in helping the Indonesian Government reach this ambitious target.