Investors Hesitate on Geothermal Projects in Indonesia
Indonesia's geothermal energy is literally bursting from the ground, with the world's highest number of volcanic hot spots. Unfortunately, Southeast Asian politics and a lack of foreign investment is bogging down the great potential of the country's clean energy market. With plans to add as much as 9,000 MW of installed capacity by 2025, the industry will need to attract investors.
"The tenders are out there, they just need the investors to come in," says Paul Brophy, president and chief executive of geothermal consultancy GES. "So far, some 20 to 30 concessions have been issued so there is still lots of room for new companies to come in and develop the resources."
Unfortunately, the bidding process to lack of infrastructure is holding up investment in addition to a muck of local politics and cultural beliefs. Some Hindu leaders fear that meddling with nature could anger the gods.
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Geothermal is one of the most environmental ways to produce energy; it creates almost no carbon dioxide and requires a third less land than solar or wind energy infrastructure. It's also cheaper than coal or gas, and could dramatically boost the growing economy of Indonesia. Although upfront investment can be high, the country needs the power to help it grow.
Chevron is currently the world's largest geothermal power producer with plants in Java and in the Philippines. In addition to other companies like India's Tata Group and General Electric Co., Chevron is putting more money towards the country's geothermal potential, even despite accusations from disheartened locals that the company is cutting down trees in the process.
But the government is still lagging. Companies don't have much public data to work with to assess the best points of exploration and overlapping jurisdictions of project approvals continue to get in the way. A new law that allows outside developers to pursue geothermal projects so long as five percent of their profits goes to the Indonesian government should help bolster foreign interests.
Tesla records $1.1bn quarterly profit
Tesla recorded $1.1 billion net income in the second quarter, for the first time in its history, overcoming semiconductor chip shortages and other supply chain challenges.
Spurred by record levels of global demand and 'never-before-seen inflection point' for electric vehicles, production ran close to full capacity, and a quarterly highlight was the launch of the Tesla Vision. Total revenues were just under $12 billion and year-on-year production increased from 180,338 models to 206,421.
Technology will continue to be key to the carmaker's future. "Solving full autonomy is a difficult engineering challenge in which we continue to believe can only be solved through the collection of large, real-world datasets and cutting-edge AI," it said.
Progress is being made on the industrialisation of the Cybertruck, which is earmarked for production at Austin. The removal of radar, which is enabled by its collection of a vast dataset of corner cases, allows Tesla to focus on vision and increase the pace of improvement - the first customers have downloaded FSD V9 Beta this month.
Geographic production breakdowns were as follows:
- US California and Texas production ramp of Model S progressed and majority of all Model 3/Y was delivered, and Texas Gigafactory (pictured below) continues to progress
- Shanghai production remained strong despite 'minor' supply chain challenges and Tesla has completed the transition of Gigafactory Shanghai as the primary vehicle export hub
- Europe Berlin-Brandenburg demand (main photo) remains well above supply, resulting in growing wait times for delivery, and new equipment and testing tools are being introduced, with growing import volumes in the interim
- The company is "on track" to build its first Model Y vehicles in Berlin and Austin this year but pressures on batteries and supply chains means the Semi truck program has been pushed back to 2022
Tesla said it has successfully validated performance and lifetime of its 4680 battery cells produced at its Kato facility in California but "we still have work ahead of us" before it can achieve volume production. Energy storage deployments more than tripled, driven mainly by several Megapack projects, although energy storage production continues to be held back by supply chain challenges, given its long backlog. Solar deployments reached 85MW in Q2, a triple jump on Q2 2020.
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