JAKARTA – FACED with looming energy crises in their developing economies, power-hungry Indonesia and the Philippines are looking deep into the earth for a solution.
Both are in the so-called Pacific Ring of Fire, an area peppered with volcanoes and home to the world’s biggest reservoir of geothermal power.
‘When I think of Indonesia and energy, I think geothermal. Indonesia has more than 500 volcanoes, of which 130 are active,’ Mr Lester Brown, president of the Washington-based Earth Policy Institute, told CLSA Asia-Pacific Markets in a speech in June.
‘Indonesia could run its economy entirely on geothermal energy and has not come close to tapping the full potential,’ he told the investment group.
That may be changing though as soaring oil prices, surging demand and creaking infrastructure in the power sector make it all the more urgent for both Indonesia and the Philippines to find ways to exploit their geothermal reserves.
But unlocking the potential is proving difficult.
Blackouts
Electricity networks in the Philippines and Indonesia, with a combined population of 316 million, are already under strain.
Philippine power demand is estimated to be growing at an average rate of 4.8 per cent a year, while Indonesia has suffered power blackouts with razor-thin supply cushion when demand peaks.
- My friend went Jakata (pantai indah kaput a.k.a. PIK) to visit his Indonesian wife recently (15 June 2008) and the location suffered approximately 3 hour long blackout (1am to 3am Indonesia time). He thanked me for advising him to bring along a torch wherever he goes even in Singapore and he managed to see his baby in the darkness.
Remember, Indonesia is the country that exports natural gas to other countries like Singapore, China, South Korea, Japan and etc to generate electricity. This may means something more ominous in the coming months or years, that they might lower their exports to cater to their own domestic demand for natural gas or rise their prices to higher to curb demand from other countries.
Regardless the case, be prepared to pay more for electricity prices if your country is importing natural gas for electricity generation!! Get your alternative ready or suffer the consequences as prices may skyrocket together with oil prices.
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