Using Private Finance to Accelerate  Geothermal Deployment: Sarulla  Geothermal Power Plant, Indonesia

Geothermal offers considerable potential to contribute to the development of low-carbon energy systems in developing countries. Its ability to provide stable and affordable power make it suitable for replacing fossil fuels as a provider of baseload power to backstop fluctuating supply from other renewable energy sources (GEA 2013). Indonesia has the world’s largest geothermal resource with potential for 29GW of capacity. However, less than 5% of the potential has been utilized. Regulatory barriers, inadequate feed-in tariffs, lack of financing and early stage exploration risks have frustrated exploitation of the country’s large geothermal potential.