Continuing with our theme of renewable energy and the investment opportunities there in; here we continue with a surprisingly popular topic: the Geothermal Indonesia. As we all know, Indonesia is chockful of renewable energy potentials, so it’s natural for us to be curious about what its investing opportunities are there.
The Potential
Other than its massive hydroelectric potential, Indonesia is also known to have massive geothermal potential to be turned into clean renewable energy.
According to ADB (Asian Development Bank), Indonesia has an estimated 28,000 megawatts of geothermal resources which is also around 40% of the world’s geothermal resources potential combined.
This is a massive number as you can probably imagine and Indonesia has shown to be able to manage this massive amount of resource to produce electricity at a somewhat acceptable rate. But not to its fullest extent as there’re still resources not being used due to the limitation that the nation faces.
Either way, globally it has the third largest installed generating capacity at 1.3 gigawatts, trailing behind United States and Philippines at 3.4 and 1.9 gigawatts respectively.
But even this, it’s still only a fraction of what is possible with the amounts of geothermal resources in the country. Even with ADB’s support in helping with this large project, there are still lots and lots of challenges and shortcomings with this particular field of renewable energy in Indonesia.
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Geothermal Powerplants in Indonesia
Currently there are 6 geothermal powerplants in Indonesia; the largest of which is the Sarulla Power Station that’s able to produce upwards of 330 megawatts of electricity. This power plant is located in North Sumatra.
The second largest geothermal powerplant in Indonesia is the Darajat Power Station that’s located in Garut, West Java. It is nowhere near as large as the Sarulla, but it does produce upwards of 255 megawatts of electricity which is still a large amount.
There’s another geothermal power plant that’s currently still in construction in Tomohon, North Sulawesi. Though this power plant is expected to output a meagre 25 megawatts of electricity, it’s also one of Indonesia only power plants that’ll be using the binary organic Rankine cycle technology.
Also Read: Powerplant Investment: Is It The Right Choice For You?
Investing Opportunities
Due to its abundant amount in Indonesia, there are a lot of geothermal Indonesia stocks and ETFs traded around by investors worldwide. It is still a part of the utilities sector though so it has all the same properties of other utilities investment you know and love.
The country is determined to achieve a target of producing 5GW of electricity through geothermal sources alone, so it can be expected that the geothermal energy investment section in Indonesia will only continue to thrive in the future. This is a good sign for curious investors looking to invest in geothermal and renewable energy.
Other than that, renewable energy sources are also in very high-demand right now as cryptocurrency takes the internet by storm. Cryptocurrency requires a lot of electricity to make and the world’s running out of fuel for these things fast. A solution to that as you can already imagine is the renewable energy.
So countries like Indonesia with tons of renewable energy potential in the form of geothermal becomes quite valuable and in demand in today’s market.
Still, remember that it’s still a part of the utilities sector. It may see some spike here and there, but its value will still stay constant just like any other utilities investment out there.
But if you want to invest in the utilities and energy sector in Indonesia, then geothermal Indonesia is one of your best choices available out there.
Is It The Investment For You?
Now you might be wondering whether geothermal Indonesia is the correct investment for you to make. This question is not that easily answered as different people has different investment goals that they want to reach.
And you definitely also have a different investment goal compared to other people. Investments in the energy sector like these are more suited for income investors that are looking for steady source of income with good stability and low downtime.
You won’t see growth investors advocating others to snatch the deal on geothermal companies’ stocks as they’re looking for the underlying potential that a product has. And though geothermal Indonesia do have that potential to grow, it is definitely not its main draw when it comes to investment opportunity.
The biggest draw of renewable energy stocks is that it’s not affected as badly when in downturns or economic recessions. It goes hand-in-hand with income investors as what they’re looking for is exactly that, a steady source of income.
If you’re that type of investor, then perhaps investing in geothermal in Indonesia is the move for you.
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Conclusion
As with any other renewable energy stocks in Indonesia, geothermal Indonesia is the same old safe and reliable income generator with its low volatility always on-demand nature. But unlike the other two that we’ve covered (wind and hydro), geothermal Indonesia has the most potential to grow in the future.
Indonesia holds 40% of the world geothermal resources, but at the current moment, only a fraction of that was able to be utilized.
Does this fact attract you into thinking of purchasing a geothermal energy stock in Indonesia?
If you’re still wondering and want to know what your options are in this sector, feel free to reach out to us at proconsultofficial.com. It is hard to decide something as large as your next investment on-the-fly based on an article you read online, after all.
Also Read: Energy Indonesia: The Correct Place to Invest In?
Afterword
And those were everything for today’s article on the nuances of geothermal Indonesia, here we can see how massive is its potential in the future should Indonesia has the necessary backing and technology to exploit it. But until then, geothermal indonesia still your regular energy investment with low volatility and consistent dividends.
Either way, thank you for reading this article, feel free to share it with your friends who might be interested in geothermal Indonesia investing opportunities too. That’s all from us for now, we’ll see you all later.