PGE Invites the World to Harness Geothermal Potential for Energy Transition and Overcome Climate Crisis

REPUBLIKA.CO.ID, BAKU -- PT Pertamina Geothermal Energy Tbk (PGE) (IDD) X: PGEO) reiterated its commitment to making Indonesia a green energy giant through participation in the 29th Conference of the Parties (COP) in Baku, Azerbaijan. At this United Nations-sponsored climate change conference, PGE highlighted the role of geothermal as a key catalyst in the energy transition and strategic solutions to the climate crisis.

In a discussion panel on “Energy Transition: Innovation, Sustainability Approaches, Strategic Efforts, and Initiatives to Achieve Indonesia's Climate Targets” at the Indonesian pavilion at COP 29, Wednesday (13/11/2024), PGE President Director Julfi Hadi said that the transition to green energy is an urgent need, especially for Indonesia as an island nation that is highly vulnerable to the effects of climate change. Moreover, Indonesia has tremendous new renewable energy (EBT) potential, especially geothermal energy which is best suited to replace the role of fossil energy.

“As the country with the second largest geothermal potential in the world, Indonesia has a great responsibility and opportunity to be a leader in the global energy transition. With its characteristics as baseload energy, geothermal is the ideal solution to replace fossil fuels, drive the agenda of transition to clean energy and reduce the pace of climate change,” said Julfi Hadi.

The panel discussion discussing the development of clean energy to achieve Indonesia's climate targets also featured other speakers such as EBTKE Director General of the Ministry of ESDM Eniya Listiani Dewi, Executive Vice President of Energy Transition and Sustainability of PT PLN (Persero) Kamia Handayani and Director of Sustainable Energy Hub United Nations Development Program (UNDP) Riad Meddeb.

Julfi Hadi highlighted a number of challenges of geothermal energy development. Of the total resource of 24 GW, only about 10 percent is utilized. In the spirit of COP29, he stressed the importance of global collaboration to accelerate the development of this energy.

Julfi revealed that geothermal development still faces many challenges, from technical aspects, regulations, to financing. However, with global cooperation, Indonesia can turn this challenge into an opportunity.

“Countries around the world need to foster the creation of ecosystems that support geothermal development, especially through strengthening green finance sectors. Greater investment in the sector is key to accelerating the transition towards a cleaner future,” he said.

Julfi Hadi also explained that the acceleration of geothermal development will make Indonesia the potential to become the world's green energy giant. This aligns with the national EBT roadmap which targets 10.5 GW of geothermal installed capacity by 2035. The target is expected to attract 17-18 billion US dollars in investment, contribute up to 22 billion US dollars to GDP, as well as create up to 1 million jobs.

In support of this vision, PGE continues to commit to increasing installed capacity to 1.5 GW by 2030 through the implementation of a new paradigm of more efficient and innovative geothermal development through a number of approaches.

That approach includes, among other things, the gradual development to minimize risks, the application of new technologies to improve efficiency, collaboration to increase volume and market consolidation, the development of new “green” businesses, such as green hydrogen and green ammonia, and the promotion of technology localization by encouraging local manufacturing of key components of geothermal plants.

“The potential of new and renewable energy, especially geothermal, is a major force that not only supports Indonesia strengthening its climate commitments and achieving its zero emissions target by 2060, but also supports sustainable economic development and national energy self-sufficiency,” Julfi Hadi said.

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