IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i14p5009-d858830.html
   My bibliography  Save this article

Unearthing the Dynamics of Indonesia’s Geothermal Energy Development

Author

Listed:
  • 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)

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.

Suggested Citation

  • Satya Widya Yudha & Benny Tjahjono & Philip Longhurst, 2022. "Unearthing the Dynamics of Indonesia’s Geothermal Energy Development," Energies, MDPI, vol. 15(14), pages 1-18, July.
  • Handle: RePEc:gam:jeners:v:15:y:2022:i:14:p:5009-:d:858830
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/14/5009/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/15/14/5009/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yong Jiang & Yalin Lei & Li Li & Jianping Ge, 2016. "Mechanism of Fiscal and Taxation Policies in the Geothermal Industry in China," Energies, MDPI, vol. 9(9), pages 1-20, September.
    2. Govindan, Rajesh & Al-Ansari, Tareq, 2019. "Computational decision framework for enhancing resilience of the energy, water and food nexus in risky environments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 653-668.
    3. Aslani, Alireza & Helo, Petri & Naaranoja, Marja, 2014. "Role of renewable energy policies in energy dependency in Finland: System dynamics approach," Applied Energy, Elsevier, vol. 113(C), pages 758-765.
    4. Spittler, Nathalie & Shafiei, Ehsan & Davidsdottir, Brynhildur & Juliusson, Egill, 2020. "Modelling geothermal resource utilization by incorporating resource dynamics, capacity expansion, and development costs," Energy, Elsevier, vol. 190(C).
    5. Spittler, Nathalie & Davidsdottir, Brynhildur & Shafiei, Ehsan & Diemer, Arnaud, 2021. "Implications of renewable resource dynamics for energy system planning: The case of geothermal and hydropower in Kenya," Energy Policy, Elsevier, vol. 150(C).
    6. Satya Widya Yudha & Benny Tjahjono & Philip Longhurst, 2021. "Stakeholders’ Recount on the Dynamics of Indonesia’s Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-19, May.
    7. Matthew S. Winters & Matthew Cawvey, 2015. "Governance Obstacles to Geothermal Energy Development in Indonesia," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(1), pages 27-56.
    8. Satya Widya Yudha & Benny Tjahjono, 2019. "Stakeholder Mapping and Analysis of the Renewable Energy Industry in Indonesia," Energies, MDPI, vol. 12(4), pages 1-19, February.
    9. Pambudi, Nugroho Agung, 2018. "Geothermal power generation in Indonesia, a country within the ring of fire: Current status, future development and policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2893-2901.
    10. Chamorro, César R. & Mondéjar, María E. & Ramos, Roberto & Segovia, José J. & Martín, María C. & Villamañán, Miguel A., 2012. "World geothermal power production status: Energy, environmental and economic study of high enthalpy technologies," Energy, Elsevier, vol. 42(1), pages 10-18.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sagar Shelare & Ravinder Kumar & Trupti Gajbhiye & Sumit Kanchan, 2023. "Role of Geothermal Energy in Sustainable Water Desalination—A Review on Current Status, Parameters, and Challenges," Energies, MDPI, vol. 16(6), pages 1-22, March.
    2. Satya Widya Yudha & Benny Tjahjono & Philip Longhurst, 2022. "Sustainable Transition from Fossil Fuel to Geothermal Energy: A Multi-Level Perspective Approach," Energies, MDPI, vol. 15(19), pages 1-22, October.
    3. Thai Hoang Tuyet Nhi & Chia-Nan Wang & Nguyen Van Thanh, 2022. "Multicriteria Decision Making and Its Application in Geothermal Power Project," Sustainability, MDPI, vol. 14(23), pages 1-14, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Setiawan, Andri D. & Dewi, Marmelia P. & Jafino, Bramka Arga & Hidayatno, Akhmad, 2022. "Evaluating feed-in tariff policies on enhancing geothermal development in Indonesia," Energy Policy, Elsevier, vol. 168(C).
    2. Hafidz Wibisono & Jon C. Lovett & Dhimas Bayu Anindito, 2023. "The contestation of ideas behind Indonesia's rural electrification policies: The influence of global and national institutional dynamics," Development Policy Review, Overseas Development Institute, vol. 41(1), January.
    3. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    4. Satya Widya Yudha & Benny Tjahjono & Philip Longhurst, 2022. "Sustainable Transition from Fossil Fuel to Geothermal Energy: A Multi-Level Perspective Approach," Energies, MDPI, vol. 15(19), pages 1-22, October.
    5. Abolhosseini, Shahrouz & Heshmati, Almas & Altmann, Jörn, 2014. "A Review of Renewable Energy Supply and Energy Efficiency Technologies," IZA Discussion Papers 8145, Institute of Labor Economics (IZA).
    6. Alexander Vallejo Díaz & Idalberto Herrera Moya & Edwin Garabitos Lara & Cándida K. Casilla Victorino, 2024. "Assessment of Urban Wind Potential and the Stakeholders Involved in Energy Decision-Making," Sustainability, MDPI, vol. 16(4), pages 1-20, February.
    7. Spittler, Nathalie & Davidsdottir, Brynhildur & Shafiei, Ehsan & Diemer, Arnaud, 2021. "Implications of renewable resource dynamics for energy system planning: The case of geothermal and hydropower in Kenya," Energy Policy, Elsevier, vol. 150(C).
    8. Behnam Zakeri & Samuli Rinne & Sanna Syri, 2015. "Wind Integration into Energy Systems with a High Share of Nuclear Power—What Are the Compromises?," Energies, MDPI, vol. 8(4), pages 1-35, March.
    9. repec:aud:audfin:v:21:y:2019:i:50:p:75 is not listed on IDEAS
    10. Sahar AlMashaqbeh & Jose Eduardo Munive-Hernandez, 2023. "Risk Analysis under a Circular Economy Context Using a Systems Thinking Approach," Sustainability, MDPI, vol. 15(5), pages 1-17, February.
    11. Haris, Muhammad & Hou, Michael Z. & Feng, Wentao & Mehmood, Faisal & Saleem, Ammar bin, 2022. "A regenerative Enhanced Geothermal System for heat and electricity production as well as energy storage," Renewable Energy, Elsevier, vol. 197(C), pages 342-358.
    12. Pietrasanta, Ariana M. & Mussati, Sergio F. & Aguirre, Pio A. & Morosuk, Tatiana & Mussati, Miguel C., 2022. "Water-renewable energy Nexus: Optimization of geothermal energy-powered seawater desalination systems," Renewable Energy, Elsevier, vol. 196(C), pages 234-246.
    13. Banda, Webby, 2023. "A system dynamics model for assessing the impact of fiscal regimes on mining projects," Resources Policy, Elsevier, vol. 81(C).
    14. Trumpy, Eugenio & Bertani, Ruggero & Manzella, Adele & Sander, Marietta, 2015. "The web-oriented framework of the world geothermal production database: A business intelligence platform for wide data distribution and analysis," Renewable Energy, Elsevier, vol. 74(C), pages 379-389.
    15. Dagar, Vishal & Dagher, Leila & Rao, Amar & Doytch, Nadia & Kagzi, Muneza, 2024. "Economic policy uncertainty: Global energy security with diversification," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 248-263.
    16. Lidia Luty & Monika Zioło & Wioletta Knapik & Iwona Bąk & Karol Kukuła, 2023. "Energy Security in Light of Sustainable Development Goals," Energies, MDPI, vol. 16(3), pages 1-18, January.
    17. Becerra-Fernandez, Mauricio & Sarmiento, Alfonso T. & Cardenas, Laura M., 2023. "Sustainability assessment of the solar energy supply chain in Colombia," Energy, Elsevier, vol. 282(C).
    18. Chen, Hongfei & Liu, Hongtao & Yang, Fuxin & Tan, Houzhang & Wang, Bangju, 2023. "Field measurements and numerical investigation on heat transfer characteristics and long-term performance of deep borehole heat exchangers," Renewable Energy, Elsevier, vol. 205(C), pages 1125-1136.
    19. Poulin, Craig & Kane, Michael B., 2021. "Infrastructure resilience curves: Performance measures and summary metrics," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    20. Liu, Hanchen & Wang, Chong & Ju, Ping & Li, Hongyu, 2022. "A sequentially preventive model enhancing power system resilience against extreme-weather-triggered failures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    21. Veldhuis, A.J. & Reinders, A.H.M.E., 2013. "Reviewing the potential and cost-effectiveness of grid-connected solar PV in Indonesia on a provincial level," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 315-324.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:14:p:5009-:d:858830. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.