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Harnessing the ‘Ring of Fire’ for geothermal power in Indonesia

Web Story | 2025-06-16

Indonesia’s location on the so-called Pacific Ring of Fire, at the meeting point of two active volcanic regions, has blessed it with a vast potential resource of geothermal energy.

Tapping into heat rising from the earth’s core could provide Indonesia, which holds 40 percent of the world’s geothermal reserves¹, with a virtually limitless supply of clean energy to serve the growing demands of its 285million² population. 

Currently, Indonesia – one of the world’s most volcanically active countries – uses only around ten percent of its estimated 24,000 megawatts of geothermal capacity. But the huge potential has placed geothermal at the heart of Indonesia’s National Energy Policy, as it aims to transition from an energy sector currently 85% reliant on fossil fuels³, towards a goal of net-zero emissions by 2060.

 

Powering Indonesia’s clean energy future with global momentum

Geothermal energy is set to build on the current 0.3 percent market share of the world’s power supply – 16.8 GW worldwide – to 28 GW by 2030 and upwards of 110 GW by 2050.⁴

Geothermal technology can be complex and expensive, but companies such as ABB can provide critical expertise in automation and electrification. 

We’re helping the country maximize the potential of an abundant clean energy resource.

 

Bringing global expertise to Indonesia’s geothermal projects 

We’ve partnered with Ormat Technologies – a leader in renewables and the geothermal sector – for more than 10 years. They have chosen our generators for geothermal plants in the US and have done so again for Indonesia’s new Ijen geothermal project.

It is the first geothermal plant in East Java and it relies on an ABB generator designed according to the Top Industrial Efficiency (TIE) standard, to supply clean energy to around 85,000 homes. The plant is expected to generate 34.9 MW gross in 2025 and will be developed in further phases.

 

Optimized output with Top Industrial Efficiency (TIE) option

Our generator for the Ijen power plant achieves an efficiency level of 98.7 percent enabling it to minimize losses and optimize use of the geothermal energy source. Its rotating mass also helps to improve the stability and short-circuit capability of the grid. 

TIE is an initiative whereby a manufacturer (in this case, ABB) commits to supply the most energy efficient solution possible without compromising on reliability, complexity or compliance with specifications. We have introduced TIE as a free concept – open also to other vendors – with the aim of promoting products and solutions that reduce CO2 emissions while increasing sustainability.

 

Ten years of collaboration with Kaishan Group in Indonesia

We’ve been collaborating since 2015 with Kaishan Group, which has built two geothermal plants in Indonesia: Sorik Marapi Geothermal Power in North Sumatra and Sokoria in East Nusa Tenggara.

Our technologies such as high-performance synchronous generators play a crucial role in the plants’ operation, helping them to run efficiently, reliably and cost-effectively.

 

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