Geothermal Captive Use for Powering Mining Sites: Worldwide Experience and the Potential and Challenges for Implementation in Indonesia

In conventional geothermal electricity trading, geothermal plant operators sell electricity to off-takers, who then distribute it to end users such as industries. However, some industries are located too far from the existing grid for a cost-effective connection, which forces them to generate electricity independently to support their operations. Our study assesses the potential for geothermal captive use in Indonesia’s mining sector, where mining companies develop geothermal resources to generate electricity and meet their own energy needs. While previous research has explored the global potential, economic benefits, and environmental advantages of geothermal power in mining—often from broad geographic or regulatory perspectives—few have provided a detailed, site-specific analysis of Indonesia’s mining sector. Our study addresses that gap by identifying and evaluating specific mining sites in Indonesia for geothermal captive use. It contributes to the literature by combining practical mining site assessments with targeted insights to support the transition from fossil fuels to geothermal captive use for powering remote mining operations. Examples from Lihir (Papua New Guinea) and Florida Canyon (United States) demonstrate successful applications of this model, yet it remains largely untapped in Indonesia. By reviewing global case studies, we explore captive use mechanisms and extract lessons relevant to the Indonesian context. Although geothermal captive use is still rare in Indonesia, findings indicate several mining sites with potential for its adoption. We underscore the environmental benefits of geothermal energy compared with conventional sources such as diesel and natural gas. However, overcoming technical, economic, and regulatory challenges is crucial for successful implementation. In conclusion, geothermal captive use offers clear benefits for energy-intensive industries in Indonesia, enhancing energy independence, reducing environmental impacts, and supporting broader geothermal adoption in industrial settings.