Indonesian geothermal plant to rise in South Sumatra

Increasing Indonesia alternative electricity production.

A power purchase agreement has been signed for a geothermal power plant in southern Sumatra, would help accomplish that objective.

This is between Perusahaan Listrik Negara and Indonesia’s Supreme Energy, Japan’s Marubeni and France’s GDF Suez.

The three latter companies that will build the $2.2 billion facility, which will have two 110 megawatt generators.

Under the agreement, PLN will pay 8.86 cents per kilowatt hour to the consortium for 30 years, said PLN’s president director, Nur Pamudji on Monday.

Supramu Santosa, president director of Supreme Energy, said that the South Sumatran Rantau Dedap plant is among three geothermal projects the firm is currently developing.

“The investment value for the Rantau Dedap plant is around $700 million, and the total investment value is estimated at $2.2 billion,” he said.

Supramu added that the plant is expected to start generating electricity in 2017.

PLN renewable energy chief Muhammad Sofyan, said that the firm planned to sign at least 15 power purchase agreements for geothermal project in the near future. He did not provide any names.

Indonesia, which sits on top of two volcanic chains, is rich in geothermal power where it is estimated that some 40 percent of the world’s geothermal reserves are located in Indonesia.

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