Masdar makes strategic investment in geothermal

Masdar, a global clean energy powerhouse, is entering the geothermal energy sector, through a strategic investment in Pertamina Geothermal Energy (PGE).

The investment marks Masdar’s entry into geothermal energy, in the second-largest geothermal market in the world.

Indonesia has a goal of increasing its installed geothermal capacity from 2.8 gigawatts (GW) in 2022 to 6.2 GW by 2030. The Government is targeting net-zero emissions by 2060 and having renewables provide 23 percent of the energy mix by 2023.

PGE has been operating geothermal facilities in Indonesia for the last 40 years, with a portfolio capacity exceeding 1.87 GW.

Geothermal energy harnesses the heat generated within the Earth’s core to provide a constant energy source, unlike solar or wind, which are intermittent in nature. Geothermal energy plants also have high-capacity factors, meaning they can run at maximum power for longer periods. These attributes mean geothermal energy could potentially play a significant role in the clean energy transition, helping nations with a high concentration of geothermal activity to reduce carbon emissions.

The PGE investment is the latest in Masdar’s ongoing effort to expand and increase its strategic partnerships in the Asia-Pacific region. Masdar is already developing the region’s largest floating solar facility the 145-MW Cirata Floating Solar PV Plant in Indonesia and last year signed an agreement with Tuas Power, EDF Renewables, and PT Indonesia Power to explore the development of up to 1.2 GW solar capacity in Indonesia for export to Singapore.

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