Challenges for geothermal development in Aceh Province, Indonesia; a place where disasters, political, and environmental issues meet.

Transcription

1 Geothermal Energy Development for a Green Economy Asian Workshop on Geothermal Energy Hanoi, November 2017 Challenges for geothermal development in Aceh Province, Indonesia; a place where disasters, political, and environmental issues meet. Nazli Ismail Department of Physics/Geophysics Syiah Kuala University Banda Aceh - Indonesia International Technology Collaboration Programme of the IEA and Vietnam Institute of Geosciences and Minerals Resources (VIGMR)

2 Aceh Province Located at the northern tip of Sumatra. Close to the Andaman and Nicobar Capital city: Banda Aceh. Area: 57,365 km 2 Population ~ 4 million

3 Geothermal Potential in Aceh 1. boih (25 MW) 2. Lhok Pria Laot (50 MW) 3. Jaboi (50 MW) 6. Alur Canang (25 MW) 7. Alue Long Bengga (100 MW) 8. Tangse (25 MW) 9.Rimba Raya (100 MW) 10. Geureudong (120 MW) 11. Simpang Balik (100 MW) 4. Ie Suum (63 MW) 5. Seulawah Agam (165 MW) 12. Silih Nara (100 MW) 13.Meranti (25 MW) 14.Brawang Buaya (25 MW) 15. Kafi (25 MW) 16. Gunung Kembar (92 MW) 17. Dolok Perkirapan (25 MW) Reserves Speculative Hypotethical Probable Total: MWe

4 Timeline of geothermal development Geothermal development in Weh Island takes more than 40 years, exceeding the period of the Free Aceh Movement (GAM) conflict which started since 1974 to Reconnaiss ance Jaboi Geothermal Area Surface manifestation and geoelectrical survey geochemical, geomagnetic, gravity, resistivity and geoelectrical mapping, two shallow drilling temperature Sabang Geothermal Energy 2017 Started drilling, the project plans of MW

5 Conflict of Aceh Aceh was the third richness province in Indonesia with oil and gas resources in the past. On the other most people live in poverty that caused them feelings of unequal treatment by the central government. The prolonged social and economic imbalances have trigered the Free Aceh Movement (GAM) in This struggle between Government of Indonesia and GAM continued until The vertical conflict is one of the reasons for the slow development of geothermal in Aceh

6 Conflict and Its Impact on Development The conflict between GAM and GOI had different stages. The first stage had no significant impact in Aceh, and GAM held little political or military clout. The resurgence of conflict in 1989 saw a better trained and armed GAM. In response, the government transformed Aceh into a military zone. This change resulted in the deployment of a sizable contingent of military and police forces. This phase was the most destructive of all. These forces remained in the province until their pullout in late 2005 as a result of the MoU.

7 Conflict and Its Impact on Development... Many experts and observers of Aceh agree that the conflict was driven mainly by two issues: difficult center-periphery relations between Jakarta and Aceh; and a sense of exclusion or exploitation in Aceh in the enjoyment of benefits of its natural resources.

8 Peace agreement and its impact The 2005 Helsinki memorandum of understanding was the latest attempt to end this 30-year conflict. It offers great opportunity for Acehnese to improve their communities economic performance, attain better living standards, and move toward a good governance system. The central government also agreed to provide Aceh with a larger share of revenue from natural resources and special allocation from General Allocation Fund. Right to set interest rates different from those set by the Central Bank of Indonesia Right to retain 70 percent of revenue from oil and gas, hydrocarbon, and other natural resources Joint management of oil and gas resources between the province and central government, and transparency in revenue-sharing allocation

9 Seulawah Agam Geothermal Field Seulawah Agam Geothermal field is located in Aceh Besar Regency (about 60 km from Banda Aceh to the east). Seulawah Agam area was the first area to get the attention of the new government. Aceh and Pertamina sign a joint venture agreement on Seulawah geothermal project. Aceh through the Aceh Regional Development Company and PT Pertamina through its subsidiary PT Pertamina Geothermal Energy, form PT Geothermal Energy Seulawah (GES) to develop a geothermal power plant in Seulawah.

10 Seulawah Agam Geothermal Field... The project has been on the drawing board for six years. It is expected now that this project can be completed within 3.5 years or a maximum of 4 years, and thereby help with the ongoing electricity crisis in Aceh. The peak load of electricity demand in Aceh is around 325 megawatts (MW), so to serve the needs well, ideally PLN has 50 percent energy reserves of that need, or about 500 MW, but in reality, currently only 340 MW.

11 Seulawah Agam Geothermal Field... This geothermal project has actually been initiated the first time in The idea was well received by the German Government, which in 2009 was willing to grant funds of $10 million. Under conservative estimates, the potential is expected to be up to 165 MW. For the initial phase of the development, Pertamina and Aceh Regional Development Company are planning with the development of 55 MW. Meanwhile, earlier this year a grant worth 7.72 million from German development bank KfW Germany for the construction of the Seulawah geothermal plant in Aceh was cancelled as the soft loan was considered to have a too high interest rate (at 4 percent).

12 Geothermal Energy Devopment and Environmental Issues Although the two former geotermal fields, Seulawah Agam dan Jaboi, are still not able to be developped, the government is also actively seeking new geothermal potential areas. Three of the areas are located in Mount Leuser National Park. Mount Leuser National Park is part of the wider Leuser Ecosystem, a nationally protected area constituting one of Southeast Asia s last great swaths of intact rainforest. But the Aceh government s 2013 spatial plan makes no mention of Leuser, and local officials have argued that the province has a right to develop the area.

13 Gunung Leuser National Park Gunung Leuser National Park is a national park covering 7,927 km 2 in northern Sumatra, straddling the border of North Sumatra and Aceh provinces. The national park, settled in the Barisan mountain range, is named after Mount Leuser (3,119 m), and protects a wide range of ecosystems.

14 Gunung Leuser National Park... Gunung Leuser National Park is one of the two remaining habitats for Sumatran orangutans (Pongo abelii). Other mammals found in the park are the Sumatran elephant, Sumatran tiger, Sumatran rhinoceros, siamang, Sumatran serow, sambar deer and leopard cat

15 Gunung Leuser National Park... These creatures may have to make way for a new addition to their habitat - geothermal energy - a prospect that has conservationists wringing their hands. The plan targets a core zone of the 800,000-hectare Leuser National Park - a UNESCO World Heritage site at the heart of the 2.8 million-hectare ecosystem. The government is already embroiled in a class-action lawsuit against a pending 2013 provincial spatial plan that seeks to leave Leuser open for development a clear violation of national-level protections.

16 Gunung Leuser National Park... The plan was against by many environment NGO s. This action is also supported by the new elected governor whom some called Aceh s green governor. During the conflict, the historical logging and palm-oil concessions had been abandoned, the forests were actually regenerating quite healthfully, after the tsunami and the peace accords, trees started falling again.

17 Jaboi Geothermal Field The most progress gethermal energi development in Aceh is Jaboi Geothermal field. The geothermal project at Jaboi by Sabang Geothermal Energy has already started drilling. The project plans with a power generation potential of 10 to 15 MW. If successful, the energy produced from the geothermal plant of Jaboi could reach 80 MW in capacity. However, the area is located in a small island at the northwest of Sumatera with very low electricity consumption. The government plan that surplus energy from Jaboi will be supplied to PLN Banda Aceh via submarine cables, of this statement is not as easy to say.

18 Geothermal energy and natural disasters Aceh is prone area of many natural disasters. The 2004 Indian Ocean Tsunami, some destructive earthquakes along the Great Sumatran Fault and the unfinished eruption of the Sinabung Volcanoe at the North Sumatera Privince made the people psichologically sensitive to the potential for disasters. For example soon after the 2013 Takengon and Tangse and the 2016 Pidie Jaya Earthquakes, people always associate the earthquakes with volcanic eruption and geothermal exploration. It means that public understanding of the utilization of geothermal energy is still very low. In one hand the goverment need to develop the geothermal energy but in the other hand goverment also need to put attention on educating people on geothermal energy utilization.

19 Geothermal energy and natural disasters...

20 TERIMAKASIH