Geothermal power development is moving a little more slowly than either governments or investors would like.
Geothermal industry defends its record
Sydney Morning Herald 20th May.Australia's geothermal sector has responded to criticism it is not progressing fast enough, saying major new geothermal projects can take as long to develop as a liquefied natural gas plant.
Opposition resources spokesman Ian Macfarlane said recently the geothermal industry had stalled.
He singled out Geodynamics Ltd as being "no further advanced than it was five, ten years ago".
Geodynamics chief executive Geoff Ward says the criticism is unwarranted, especially considering technical issues that have plagued the projects are being overcome.
"There is a view that the industry exists through government funding alone," Mr Ward told AAP.
"We've raised in excess of $400 million over ten years and spent nearly $300 million in the ground but only $11 million has come from government funding."
Panax Geothermal Ltd managing director Kerry Parker said talk of the sector surviving on grants was "rubbish".
"It's an industry that, you've got to be honest, is suffering at the moment," Mr Parker said.
In Indonesia, Panax is working on conventional geothermal projects, which target volcanic-based hot aquifers. They don't require fracturing rocks, like projects in SA, and are hence easier to develop.
Indonesia was a ready market for Panax, given the nation's goal was to expand geothermal energy production by about 4,000 megawatts (MW) by 2015, from 1,400 MW currently, to meet an energy shortfall.
Both Geodynamics and Petratherm Ltd still remain committed to SA, with Petratherm expecting to deliver Australia's first commercial supplies of hot rock power from its Paralana project by the end of 2012.
This would be three years later than initially expected, following drilling problems at the project including fluids flowing into the well.
He said the greatest risks were principally financial. Other than deep pockets, patience was needed as a geothermal development was similar in scope to a large LNG project, Mr Ward said.
"My view of the energy future of this world is we'll see progressively more gas, more renewables and less coal.
"And it's inevitable the nuclear issue will come up for serious debate and so it should."
Indonesia is struggling to keep up with demand for improved infrastructure, electricity being a prime example. Rolling blackouts, three times a day where I live, were a challenge while I completed my thesis two years ago. In response to the demand, Indonesia appears to be considering any option. The government has given geothermal some favorable treatment, but apparently sometimes not favorable enough for some investors.