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260
GEOTHERMAL ENERGY POTENTIAL IN SUPPORTING NATIONAL
DEFENSE AND ECONOMIC SUSTAINABILITY IN DEVELOPING
COUNTRIES
Inez Koerniawati
1
, Lukman Yudho Prakoso
2
, Rheviany HS Putri
3
, Nur Khotimah
4
Indonesian Defense University, Indonesia
1,2,3,4
inez.koerniawatii@gmail.com
1
, lukman.prakoso@gmail.com
2
3
,
4
PAPER INFO ABSTRACT
Received: 02-02-2023
Revised: 10-02-2023
Approved: 26-02-2023
In recent decades, geothermal energy has become increasingly important as
an alternative energy source that can support national energy security and
economic sustainability in developing countries. This article discusses the
potential of geothermal resources and their implications for national defense
and economic sustainability in developing countries. The author presents an
overview of the potential of geothermal energy in developing countries and
then discusses its implications for national defense and economic
sustainability. This article also discusses the challenges and opportunities
faced by developing countries in harnessing the potential of geothermal
energy to strengthen energy security and support economic growth. The
method used in this research is literature analysis and case studies. Data was
collected from sources such as official government reports, academic studies,
and scientific journal articles. The results of the study show that geothermal
energy has great potential in supporting national defense and economic
sustainability in developing countries. However, there are still many
challenges to be overcome in developing the geothermal energy industry,
including difficulties in identifying geothermal resource potential and
building the necessary infrastructure to harness it. Nevertheless, this article
shows that geothermal energy can be a promising solution for developing
countries to strengthen energy security and support sustainable economic
growth.
Keywords: Geothermal Energy; Economic Sustainability; National Defense;
National Energy Security; Industry Development
INTRODUCTION
Geothermal energy is an alternative energy source that can be utilized to support national
energy security and economic sustainability in developing countries. Developing countries have
a vast potential for geothermal energy, but its utilization is still limited. According to the
International Energy Agency (IEA), the global potential for geothermal energy reached 70,000
Megawatts (MW) in 2019 (Canton, 2021). This article discusses the potential of geothermal
energy in supporting national defense and economic sustainability in developing countries.
Geothermal energy has several advantages compared to other energy sources. First, it is
renewable and can naturally replenish itself, making it a reliable long-term energy source. Second,
it is clean energy and does not produce greenhouse gas emissions or hazardous waste (Marpaung
et al., 2020). Third, geothermal energy has significant potential, especially in countries with high
geological activity.
In terms of national defense, geothermal energy can be utilized in military facilities and
securing strategic infrastructure. For example, in the United States, several military bases have
used geothermal energy to supply their energy needs (Ceres, 2016). Moreover, geothermal energy
can also serve as an alternative to fossil fuels in military vehicles.
Meanwhile, in terms of economic sustainability, geothermal energy can support the
reduction of dependence on imported energy resources, the development of the energy industry,
and the development of remote areas. However, the utilization of geothermal energy in developing
Geothermal Energy Potential In Supporting National Defense And Economic Sustainability In Developing Countries
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261
is still limited due to several factors, such as technological and financial limitations, unclear
regulations, and social and environmental issues (Ito & Ruiz, 2017).
To increase the utilization of geothermal energy in developing countries, efforts are needed
to improve technology and finance, provide clear regulations, and manage the environment
sustainably. With more optimal utilization of geothermal energy, developing countries can
effectively and sustainably support their national energy security and economic sustainability
(Indonesia, 2016).
RESEARCH METHOD
The research method used in this article is literature study and descriptive analysis. A
literature study was conducted by searching and collecting data from reliable sources such as
scientific journals, books, and government reports related to geothermal resources’ potential, the
national defense industry, and economic sustainability in developing countries. The data was then
analyzed descriptively to provide a clear picture of the potential of geothermal resources and their
implications for national defense and economic sustainability.
RESULTS AND DISCUSSION
Geothermal Energy Potential In Developing Countries
The purpose of geothermal energy potential in developing countries is to strengthen energy
security and support economic growth by using available natural resources sustainably. In
addition, geothermal energy development can also reduce greenhouse gas emissions and
accelerate the transition to clean energy. Furthermore, geothermal energy potential can be utilized
to strengthen the national defense sector by providing reliable and independent sources of energy.
Geothermal energy potential in developing countries varies depending on geological and
topographical factors. Several countries that have significant geothermal energy potential are
presented in the following Table 1.
Table 1. The Countries that have significant geothermal energy potential
Source: International Renewable Energy Agency (IRENA) The data is processed.
Next, a graph will be presented showing the countries that produce the most electricity
using geothermal energy.
United States
• The capacity of
geothermal power
plants in the
United States
reached 3,965
MW in 2020.
• The state of
California is the
main center for
geothermal
energy
development in
the United States
with a capacity of
over 2,600 MW
Indonesia
• The capacity of
geothermal power
plants in
Indonesia reached
2,134 MW in
2020.
• Indonesia has a
large number of
geothermal
resources with a
potential of up to
29,000 MW, the
largest in the
world located on
the island of Java
and Sumatra
Philippines
• The capacity of
geothermal power
plants in the
Philippines
reached 1,868
MW in 2020.
• The Philippines
has a potential
geothermal
resource of up to
4,900 MW.
Turkey
• The capacity of
geothermal power
plants in Turkey
reached 1,646
MW in 2020.
• Turkey has a
potential
geothermal
resource of up to
2,000 MW.
New Zealand
• The capacity of
geothermal power
plants in New
Zealand reached
1,026 MW in
2020.
• New Zealand has
a potential
geothermal
resource of up to
3,500 MW.
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Figure 1. Geothermal Energy in Several Countries
Source: International Geothermal Association
From the graph, it can be seen that the United States is the highest user of geothermal
energy in the world due to its large and widely distributed geothermal resource potential in several
regions such as California, Nevada, and Oregon. In addition, the US government has provided
support and incentives for the development of geothermal energy through various policies and
programs such as the Production Tax Credit (PTC) and Investment Tax Credit (ITC) (Kebijakan
Energi Nasional, 2014).
Benefits Of Geothermal Energy For National Defense
Geothermal energy can play an important role in strengthening national energy resilience
and securing strategic infrastructure in several developing countries. Some developing countries,
such as the Philippines and Kenya, have utilized geothermal energy to meet national energy needs
and strengthen national defense infrastructure (Merem et al., 2019).
In the Philippines, geothermal energy has been utilized since the 1970s and is now the
second-largest source of energy after fossil fuels. In addition, geothermal energy is also used in
some military facilities and strategic infrastructure security in the Philippines. This is done to
ensure a stable and secure energy supply for national defense purposes.
Meanwhile, in Kenya, the use of geothermal energy has also increased since the 1980s and
is now the third-largest primary energy source after hydro and fossil fuels. In addition, the use of
geothermal energy is integrated with national defense needs and strategic infrastructure security
in Kenya, such as its use in military facilities and communication networks.
The use of geothermal energy to strengthen national energy resilience and secure strategic
infrastructure in several developing countries can help reduce dependence on fossil fuels that are
vulnerable to price and supply fluctuations. In addition, the use of geothermal energy can also
help meet national energy needs sustainably and in an environmentally friendly way. Some
examples of potential uses of geothermal energy in the defense industry sector are:
1. The use of geothermal energy for air conditioning in military buildings and command centers.
This can reduce energy consumption from conventional AC, reduce costs, and extend the
lifespan of AC equipment (Darwish & Al-Dabbagh, 2020).
2. Utilization of geothermal energy in the production of firearms. One example is the use of
geothermal heat energy in the tempering process of steel, which is required in the production
of firearms (Kehinde et al., 2018).
0
500
1000
1500
2000
2500
3000
3500
United States Philippines Indonesia Mexico Italy
Amount in Megawatt Electrical (MWe).
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263
3. The use of geothermal energy in the production of explosives. An example is the utilization of
geothermal steam to dry explosives, thereby reducing the need for fossil fuels and reducing
carbon dioxide emissions (Hill, 2019).
Related to the energy needs to support the national defense sector in several countries aimed
at ensuring the continuity of military operations and national defense as well as supporting
military mobility and logistics. Some examples of countries that have high energy needs for their
national defense sector include the United States, the United Kingdom, and Japan, with the
following data:
1. According to a study conducted by the US Department of Defense, energy consumption for
military purposes in the country accounts for around 3% of the total national energy
consumption (Hartkopf, 2012).
2. A study by Jones and Jenkins (2018) showed that the national defense sector in the UK
consumes around 14 terawatt-hours of energy each year, with the majority used for military
operations and transportation (Andrews & Nwapi, 2018).
3. According to the annual report of the Japanese Ministry of Defense, total energy consumption
for military purposes in the country increased by 6% in 2020 (Japanese Ministry of Defense,
2021).
In Indonesia itself, according to the Ministry of Defense report in 2020, around 5-10% of
the national defense budget is used to finance the operational facilities of national defense,
including energy and fuel procurement. The energy needs to run national defense facilities, such
as military bases and training facilities, including energy for lighting, heating, cooling, water
treatment, and so on. In addition, the energy needs for military operations can also include the
need to operate military vehicles, aircraft, and naval ships. However, specific data on energy
needs for the national defense sector is difficult to obtain due to national security reasons.
The Benefits Of Geothermal Energy For Economic Sustainability
The utilization of geothermal energy in developing countries can provide significant
benefits in supporting economic sustainability, especially in reducing dependence on imported
energy resources. By utilizing abundant geothermal resources, countries can produce energy
independently and reduce the cost of importing fossil fuels. In addition, the development of
geothermal energy industries can also have positive impacts on job creation and local economic
growth.
An example of a developing country that has developed geothermal energy potential to
support economic sustainability is the Philippines. According to the Philippine Department of
Energy, geothermal energy is the country's second-largest energy resource after coal, with a
potential capacity of over 4,000 megawatts. The utilization of geothermal energy in the
Philippines has contributed significantly to the provision of sustainable energy and the reduction
of dependence on imported fossil fuels (Abraham & Nkitnam, 2017).
Geothermal energy can also support economic sustainability in developing countries
through the development of energy industries, as geothermal energy is a renewable energy source
that can be utilized to meet the energy needs of the industrial sector. The use of geothermal energy
can reduce dependence on limited fossil fuels and minimize negative impacts on the environment
(Kalicki & Goldwyn, 2013).
Examples of the utilization of geothermal energy for the development of energy industries
can be seen in countries such as Iceland, the Philippines, and Mexico. Iceland has successfully
developed its aluminum industry by utilizing abundant geothermal and hydroelectric energy.
Meanwhile, the Philippines and Mexico also rely on geothermal energy to meet their industrial
energy needs.
Furthermore, the utilization of geothermal energy can also support the development of
remote areas in developing countries. For example, in countries such as Kenya, the Philippines,
and Indonesia, geothermal power plants have been built in remote areas, improving access to
reliable and affordable electricity for local communities. In addition, the development of
geothermal energy in remote areas can create local job opportunities and enhance regional
economies.
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Challenges In Utilizing Geothermal Energy Potential
The utilization of geothermal energy potential in developing countries still faces several
challenges. One of the main challenges is the limitation of technology and finance in developing
and utilizing geothermal resources. The technology required to extract geothermal energy is
highly sophisticated and requires significant investment costs. Additionally, a shortage of skilled
human resources also poses a constraint in developing the geothermal energy potential in
developing countries.
Moreover, financial constraints are also a problem that needs to be overcome. The
investment cost to build geothermal power plants is usually high and takes a long time to generate
profits. The sources of funds for such investments are also limited and often difficult to obtain in
developing countries.
Unclear regulations also pose a challenge in utilizing geothermal energy potential in
developing countries. This is because unclear legal regulations and arrangements can affect the
development and investment process in the geothermal energy sector. Uncertainty in regulations
can also affect investor interest and slow down the development of geothermal energy projects.
For example, in Indonesia, there are several regulations and policies that have not been
well-integrated in the development of geothermal energy. In addition, the lack of certainty in
financing and contract regulations also becomes a major obstacle in developing geothermal
energy projects in the country.
Furthermore, social and environmental issues are challenges that must also be faced in
utilizing geothermal energy potential in developing countries. The infrastructure development
process to generate geothermal energy can cause social impacts such as land conflicts, forced
evictions, or injustice for local communities. Additionally, geothermal energy development can
also affect the environment such as the risk of water resource damage, increased seismic activity,
and the spread of toxic gases.
To overcome social and environmental problems, a comprehensive and participatory
environmental study needs to be conducted before the development process begins. In addition,
good environmental management and the involvement of local communities in the decision-
making process are also necessary.
Case Study
1. Geothermal Drilling Project In The Philippines
One case study on the use of geothermal energy in the Philippines is the geothermal
drilling project known as the "Maibarara Geothermal Power Plant" located in the province
of Batangas, Philippines. The project started in 2008 and was completed in 2014, with a total
energy production capacity of 20 MW.
This project was carried out by an Indonesian geothermal energy developer, PT
Supreme Energy, together with several local and international partners. The project aimed to
strengthen the national energy resilience of the Philippines and reduce dependence on fossil
fuels.
Moreover, the project also had positive impacts on the economy and the environment
in the surrounding area. The local government provided various incentives, including tax
exemptions and business permits, to encourage investment in geothermal energy.
However, the project also faced several challenges, such as complicated permit and
environmental clearance issues, as well as difficulties in obtaining funding for larger project
development. Despite these challenges, the project is still considered a successful example
of geothermal energy development in developing countries like the Philippines
2. The Use of Geothermal Heating System in Iceland
One famous example of a geothermal heating system in Iceland is the Hellisheidi
Geothermal Power Plant. The plant is not only used for power generation but also for heating
the nearby city of Reykjavik through a district heating system. The plant uses a combination
of flash and binary cycle technologies to extract heat from geothermal reservoirs and
generate electricity. It has a capacity of 303 MW for power generation and 133 MW for
thermal energy. The system typically uses pipes connected to hot springs underground and
Geothermal Energy Potential In Supporting National Defense And Economic Sustainability In Developing Countries
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265
delivers the hot water to heaters or radiators spread throughout the buildings (Mikhaylov,
2020).
The advantages of the geothermal heating system in Iceland are as follows:
1. Renewable energy, Geothermal heating is a renewable energy source that will not run
out, so there is no need to worry about energy scarcity in the future.
2. Environmentally friendly, The geothermal heating system does not produce greenhouse
gas emissions or other pollutants, making it environmentally friendly and helping to
reduce the impact of climate change.
3. Efficient, Geothermal heating has high efficiency, resulting in relatively low operating
and maintenance costs.
4. Stable, The geothermal heating system in Iceland is stable and reliable throughout the
year, thanks to the abundant geothermal resources
5. Can be integrated with other energy systems, Geothermal heating can be integrated with
other energy systems, such as solar panels or wind turbines, to increase efficiency and
reduce operating costs.
Although geothermal heating systems have many advantages, they also have some
limitations, such as the high initial installation cost and not all areas in the world having enough
geothermal resources to be used as an energy source. However, in Iceland, the use of geothermal
heating systems has been proven successful and provides many benefits to the local community
and environment (Lygnerud, 2019).
Government Policy Related To The Development Of Geothermal Energy And the National
Defense Industry
There are several connections between government policy in developing countries and
the development of geothermal energy and national defense industries. For example,
governments can take policy measures to strengthen the national defense industry by using
geothermal energy technology as a source of energy to ensure national energy security.
According to the Ministry of Energy and Mineral Resources of the Republic of Indonesia,
Indonesia has great potential in developing geothermal energy with a potential capacity of
around 29,000 MW. Therefore, the Indonesian government has taken several policy measures
to encourage the development of geothermal energy in the country, such as providing tax
incentives and permits for geothermal energy projects (Ministry of Energy and Mineral
Resources, 2021).
In addition, the government has also taken steps to strengthen the national defense
industry in Indonesia. For example, the Indonesian government has formed the Ministry of
Defense and carried out various programs for developing main weaponry systems to enhance
the country's defense capabilities (Ministry of Energy and Mineral Resources, 2021).
In this context, geothermal energy can be used as a source of energy that can ensure
national energy security, especially in building a reliable national defense system. For example,
the United States Department of Defense has used geothermal energy technology to provide
reliable and affordable sources of energy for U.S. military bases in various countries (U.S.
Department of Defense, n.d.).
The goal of government policy in developing countries related to the development of
geothermal energy is to utilize the potential of geothermal energy as an environmentally friendly
source of energy that can support national energy resilience. In addition, the development of
geothermal energy can also help reduce dependence on imported energy resources and reduce
greenhouse gas emissions.
In achieving these goals, the government can provide incentives and financial support for
research and development of geothermal energy technology, facilitate private investment in the
geothermal energy sector, and increase access to and use of geothermal energy in society.
Here are some government policies in developing countries related to geothermal
energy development and the national defense industry:
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a. Philippines
The Philippine government launched the "Geothermal Energy Development
Program" in 2012 to increase the development of geothermal energy in the country.
This program includes fiscal incentives, licensing ease, and technical support to
overcome investment barriers. In addition, the Philippine government also launched
the "Defense Industry Support Program" in 2019 to strengthen national defense
capabilities by increasing the self-sufficiency of the defense industry.
b. Turkey
The Turkish government adopted the "National Geothermal Action Plan" in
2014 to increase the development of geothermal energy in the country. This program
includes fiscal incentives, regulatory and licensing improvements, technical support,
and financing. In addition, the Turkish government also encourages the development
of the national defense industry through the "Turkish Defense Industry Development
Strategy" program, which includes financial support, training, and regulatory
improvements.
c. Kenya
The Kenyan government adopted the "Geothermal Risk Mitigation Facility"
program in 2012 to mitigate investment risks in geothermal energy development in the
country. This program includes fiscal incentives, financing, and technical support. In
addition, the Kenyan government also encourages the development of the national
defense industry through the "Kenya Defense Forces Modernization Program," which
includes equipment and technology upgrades, training, and capacity building.
d. Indonesia
1) The National Long-Term Electricity Development Plan (RPJPN) 2019-2038
targets 7.2 GW of electricity capacity from geothermal energy by 2030.
2) The Government Policy on Utilization of Geothermal Energy as a Source of
Electricity, issued in 2017. This policy provides incentives and facilities for
investors to develop geothermal energy projects in Indonesia.
3) The Government's New and Renewable Energy (EBT) Enhancement Program for
National Development, which focuses on the development and utilization of
renewable energy sources, including geothermal energy.
4) The Government Policy on Acceleration of National Defense Industry
Development (2019-2024), which aims to increase the production and self-
sufficiency of the national defense industry, including the energy sector.
5) Collaboration between the Ministry of Energy and Mineral Resources and the
Ministry of Defense to strengthen defense self-sufficiency through national
energy development, including geothermal energy.
CONCLUSION
Based on the discussed article, it can be concluded that geothermal energy has great
potential in supporting national defense and economic sustainability in developing countries. In
the context of national defense, geothermal energy can provide a stable and reliable energy supply
for military needs, minimizing the risk to national energy resilience. In addition, the development
of geothermal energy can also help developing countries achieve greenhouse gas emissions
reduction targets and utilize renewable energy.
However, there are several challenges in utilizing the potential of geothermal energy in
developing countries, such as technological and financial limitations, unclear regulations, as well
as social and environmental issues. Therefore, support from the government and private sector is
needed in the development of geothermal energy.
The Indonesian government has established several policies and programs to encourage the
development of geothermal energy, such as the National Energy General Plan 2019-2038, the
National Energy Policy, and the New and Renewable Energy Development Program. However,
Geothermal Energy Potential In Supporting National Defense And Economic Sustainability In Developing Countries
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267
further efforts are still needed to overcome existing challenges and maximize the potential of
geothermal energy in Indonesia.
In the context of the national defense industry, geothermal energy can be used to meet
energy needs in military operations, such as military bases and other defense installations. In
addition, the development of geothermal energy can also strengthen national energy resilience
and help in the development of the national energy industry.
Overall, geothermal energy has great potential in supporting national defense and economic
sustainability in developing countries. However, support from the government and private sector
is needed in the development of geothermal energy and overcoming existing challenges to
maximize its potential.
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