PT Pertamina Geothermal Energy Tbk Area Lumut Balai clinches two wins at Asian Power Awards 2024

The geothermal management company’s victory was brought about by its Belanting River Tubing Programme, as well as its integration of green energy and sustainable sources of power into its power plant performance strategy.

PT Pertamina Geothermal Energy Tbk Area Lumut Balai (PGE Lumut Balai) emerged as the winner in the ESG Programme of the Year - Indonesia and Geothermal Power Project of the Year - Bronze categories at the Asian Power Awards 2024.

Integrating a green ecosystem

PGE Lumut Balai has led the Belanting River Tubing Program which integrates a cohesive green ecosystem with local empowerment.

A key achievement of the programme is its focus on establishing a green ecosystem. Through regular river clean-ups and tree-planting efforts, the initiative manages approximately 250 kg of waste monthly. It also supports local reforestation and at the same time reduces CO2 emissions by 0.822 tons annually. Reflecting PGE Lumut Balai’s dedication to environmental stewardship, this programme enhances local biodiversity and promotes sustainable practices.

Local hero Darul Qunti has been instrumental in this initiative. His leadership in environmental advocacy and tourism development has motivated community support and ensured the effective implementation of the programme. Darul’s influence highlights the importance of local leadership in achieving sustainable outcomes.

Aside from this, the programme emphasises community and women’s empowerment. With training and support from PGE Lumut Balai, local women actively participate in the tourism sector through food service management. The new skills they have gained also helped them earn additional income. 

Economically, the programme has resulted in a 30% increase in participants' incomes. Beneficiaries, including Darul and other local youth, have seen significant earnings growth, which then improves their livelihoods and contributes to the local economy. This economic boost aids in poverty reduction and stimulates local businesses.

To ensure the programme’s sustainability, PGE Lumut Balai has provided essential training, equipment, and infrastructure, as well as facilitated benchmarking trips. This comprehensive support aligns with the company’s ESG goals, fostering community well-being and environmental preservation.

Furthermore, the Belanting River Tubing Program aligns with Sustainable Development Goals (SDGs) such as poverty reduction (SDG 1), decent work and economic growth (SDG 8), and life on land (SDG 15). By creating a unified green ecosystem, boosting local incomes, and empowering women, the programme illustrates how ESG principles can drive sustainable outcomes.

The Belanting River Tubing Program demonstrates the effective integration of environmental, social, and economic elements into a cohesive strategy—which also sets a benchmark for future initiatives. 

Geothermal energy

Another environmental initiative by PGE Lumut Balai is its Lumut Balai Geothermal Power Plant (GPP) Unit I, which utilises a resource that significantly reduces greenhouse gas emissions compared to fossil fuels. The power plant, located in South Sumatera, has an installed capacity of 55 MW. It boasts impressive performance metrics during 2020 - 2023, including an Equivalent Availability Factor (EAF) of 96% and an Equivalent Force Outage Rate (EFOR) of 0.11%. As a result, the plant achieves significant emission reductions of approximately 300,000 tons of CO2 per year. 

Moreover, Lumut Balai has successfully implemented in-house load operations and governor-free applications for recovery during transmission system disturbances. This reduced loss production opportunities by 2.7 GWh from 2020 to 2023. These achievements stem from the implementation of operational excellence and effective plant performance strategies in resource and operational maintenance management.

Lumut Balai Geothermal Power Plant plans to expand its geothermal capacity to 260 MW by 2030, which could lead to a potential emission reduction of 1.5 million tons of CO2 per year. Ongoing projects include the construction of Lumut Balai Project Unit II and the development of Binary and Low-Pressure units set for 2026 and 2027, respectively. These initiatives are part of broader strategies aimed at optimising electricity production and enhancing operational efficiency.

The plant also carries out continuous improvements and effective maintenance strategies, including decline curve analysis, well monitoring, and reinjection strategies. The comprehensive maintenance programme focusses on ensuring a smooth transition through various operational phases, guaranteeing long-term reliability and efficiency.

This approach not only aligns with PGE's vision of becoming a world-class green energy company but also supports Indonesia's commitment to achieving net-zero emissions under the Paris Agreement. Indonesia is committed to achieving Net Zero Emissions (NZE) by 2060, with renewable energy playing a pivotal role in this transition. As part of the government’s strategic focus on decarbonisation, geothermal energy has been identified as a critical resource in the national energy mix, with a target of reaching 23% renewable energy by 2025.

With its contribution to community development and sustainable energy practices, PGE LMB has positioned itself as a leader in the global renewable energy sector.

The prestigious Asian Power Awards honours exceptional companies that have taken game-changing steps to address the effects of the climate crisis and meet the growing demand for energy. It also provides a platform for industry players to network, share their experiences, and learn from one another.

The Asian Power Awards is presented by Asian Power Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's revolutionary innovations and initiatives in the power industry in Asia, please contact Danica Avila at [email protected].