Geothermal Power in Mexico

Mexico is one of the fastest growing geothermal producers in the world. Twenty-seven geothermal power plants are operating in the three Mexican fields, with total geothermal capacity of 953 MW in December 2005. There is a project to install 75 MW in 2006-2008 in the new area La Primavera pending resolution of some environmental matters. CFE has programmed to increase capacity in Cerro Prieto (100 MW) and Los Humeros (25 MW) in 2010.
Direct uses of geothermal heat are widespread in Mexico, including industrial laundries, refrigeration, district and greenhouse heating, and fruit and wood drying.

Geothermal Power in Japan

The first experimental geothermal power generation in Japan took place in 1925 in Beppu and capacity reached 535 MW in December 2005, which ranks Japan sixth in the world. The government target for the year 2010 is installed geothermal capacity of 2,800MW. The plants range in size from the 65 MW Yanaizu-Nishiyama unit to the 100 kW Kirishima International Hotel back- pressure generator in Beppu, Kyushu.

The Japanese government gives substantial support to the development of geothermal power. ANRE, the Agency for Natural Resources and Energy is playing a core role in development and utilisation of geothermal energy in Japan, such as providing subsidy. NEDO plays a central role to support renewables and after a slow start is now promoting geothermal development as an element of the concept of regional renewable integrated self-sufficient systems. The introduction and promotion of geothermal energy as an alternative for petroleum, has been its major task.

The organisation is also encouraging international cooperation relating to geothermal engineering.

Geothermal Power in Indonesia

Development of geothermal potential has proceeded very slowly in Indonesia and is currently facing difficult challenges and uncertainty. Over a span of 20 years, Indonesia has developed only 797 MW of geothermal power, approximately 4% of 20,000 MW geothermal potential. In the early 1990s, eleven contracts for development of geothermal power plants were awarded, with a total committed capacity of 3,417 MW and original completion dates between 1998 and 2002. As a result of the 1997-1998 financial crisis, which brought PLN, the state utility to technical bankruptcy, the Government suspended nine conventionally powered IPPs and seven geothermal projects. The government is now attempting to resuscitate the seven contracts but with little progress.

The new oil and gas law, passed in October 2001, bars geothermal as an area of regulation, requiring the Indonesian Government to develop a new legislative basis quickly. PLN understands that the future of geothermal power will depend on its competitiveness against other means of electricity generation. High capital costs and the associated electricity tariff required remain core problems. In addition, unresolved decentralization issues, uncertainties in security and contracts, and the potential regulatory changes of a planned geothermal law discourage investment in geothermal projects. In the long run, Indonesia still presents one of the world’s most attractive geothermal regions, but the Indonesian Government must develop new approaches to maximize its potential.

PLN is currently negotiating to bring down tariff rates on various geothermal ESCs, with the intent of lowering prices from US ¢ 6-8 cents/kWh agreed under Power Purchase Agreements (PPAs) to around US ¢4 cents/kWh. The original prices negotiated by the geothermal developers ranged between US ¢7.25-9.81/kWh, about double the viable rate.