PLN to receive $640m for geothermal development of six projects, Indonesia

PLN to receive $640m for geothermal development of six projects, Indonesia

The Indonesian government is seriously pursuing the target of increasing
renewable energy mix by 23 percent by 2025. It is seen from PLN's investment
to build geothermal power plant (PLTP) in six geothermal working areas
(WKP).

Director of Strategic Procurement I PT PLN (Persero) Nicke Widyawati said it
has received $640 million from PT Sarana Multi Infrastruktur (SMI). The
funds are used to find the source of geothermal steam and build a PLTP. "
Six WKP already get the assignment and the decision letter has been
received, " he said in a meeting yesterday.

The six WKPs have the potential to generate 160 MW of electricity. It is
relatively small compared to the installed capacity target of PLTP of
6,700-7,000 MW in the next 10 years. After obtaining the loan fund, PLN will
conduct further survey and drilling.

In addition, PLN is preparing the development of eight other WKP. PLN plans
to hold a third party to become a member of the consortium. " So it could be
faster, " adds Nicke.

According to Director of Geothermal of the Ministry of Energy and Mineral
Resources (ESDM) Yunus Saefulhak, six WKPs to be worked on by PLN are in
Atedei (NTT), Songa Wayaua (North Maluku), Tangkuban Perahu (West Java),
Borapulu (Central Sulawesi), Oka Ile Ange (NTT), and Gunung Sirung (NTT).

The loan for PLN comes from the SMI-managed Geothermal Fund. The total fund
of Geothermal Fund is only Rp 3.8 trillion ($282 million). The sources come
from the State Budget (APBN) worth Rp 3.1 trillion ($230 million) and the
World Bank at Rp 711 billion ($53 million).

Meanwhile, until 2019, the Minister of Energy and Mineral Resources (EMR)
Ignatius Jonan promised an additional supply of electricity from EBT of
3,000 MW. Throughout the last 10 months, Jonan said, a power purchase
agreement has been made from the EBT plant.

In addition, there is a new power supply from PLTP of 300 MW. "With all due
respect to my predecessor, I do not think anyone can reach 700 MW in 10
months," said the former president of PT KAI.

To date, the energy mix of EBT has reached 12 percent. In order for
electricity from EBT to remain affordable, the government encourages
electricity consumption from geothermal and water. In line with the
provision of electricity supply, electricity consumption for the
transportation sector will be increased.

The target, no more fuel consumption in transportation. " If you can start
walking. France by 2040 is not allowed to sell fossil fuel cars. India even
2030, " he said.

If the supply of electrical energy comes from domestic environmentally
friendly energy, dependence on the use of fuel oil will decrease.

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Link to Original Article:
http://www.thinkgeoenergy.com/pln-receives-640m-for-geothermal-development-o
f-six-projects-indonesia/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com