JAKARTA Nov 1 Chevron Geothermal Indonesia
Ltd, a unit of Chevron Corp. (CVX.N), plans to expand its
geothermal power capacity to meet growing electricity demand in
the Southeast Asian country, a company official said on
Chevron currently has geothermal power plants with a total
capacity of around 365 megawatts (MW) in West Java province.
"We are very keen to expand our geothermal capacity. We are
considering whether we can expand from our operation in West
Java," Usman Slamet, a Chevron official, told reporters on the
sidelines of an energy conference.
He did not specify a time frame.
Indonesia, dotted with hundreds of active and extinct
volcanoes, has the potential to produce an estimated 27,000 MW
of electricity from geothermal sources.
However, the vast potential remains largely untapped
because of the high cost of generating electricity from
"Chevron has no problem regarding financing and technology.
We are looking for possibilities to expand our geothermal
projects in other areas in Indonesia," Slamet said.
Indonesia, Asia Pacific's only OPEC member, is tapping
alternative energy sources to meet rising power demand and to
cut consumption of expensive crude oil as its own reserves
Simon Sembiring, the directorate general of geothermal and
mineral resources, said earlier this year many foreign firms
were interested in investing in geothermal energy projects in
The firms include Icelands's Reykjavik Energy Invest which
signed a preliminary deal on Oct. 23 with Indonesia's state oil
firm Pertamina to develop a geothermal power plant.
Mines and energy minister Purnomo Yusgiantoro said in
February that electricity generated from geothermal sources
could rise to 9,500 MW by 2025 from 850 MW,.
Indonesia, with its ageing power plants, needs to increase
electricity supply to avoid shortages in the world's
fourth-most populous country, where power demand is estimated
to be growing at around 10 percent a year.