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PLN seeks approval for management of three geothermal working areas

View in the mountains of North Sumatra (source: Flickr/ martin_canon500d, creative commons)
Alexander Richter 5 Mar 2018

PT PLN has submitted a proposal for the management of three geothermal working areas assigned to the government through the Ministry of Energy and Mineral Resources (ESDM).

PT PLN (Persero) submitted a proposal for the management of three geothermal working areas assigned to the government through the Ministry of Energy and Mineral Resources (ESDM).

Tohari Hidayat, Head of New and Renewable Energy Division (EBT) of PLN, revealed that there are actually more than three WKP that have been in demand, but as the selection process finally only three are processed.

“There are three that have been processed, the rest are seen again. This may not be interesting to develop,” Tohari said.

The assignment to the SOEs in accordance with Article 28 of Law No. 21 of 2014 on geothermal. Beleid said, the government in the exploration, exploitation and / or utilization may assign public service agency or state-owned business entity in the field of geothermal.

Assignment is given after verification and evaluation in accordance with the auction procedure applicable to private business entities, including for SOEs must also submit a guarantee fund of exploration commitments of US $ 10 million.

Some of the potential WKP assigned to PLN include WKP Gunung Endut 40 MW in Banten with an investment of around US $ 160 million, Sipoholon Ria-Ria 20 MW in North Sumatra with an estimated investment of US $ 80 million and Bora Pulu 40 MW in Central Sulawesi with an investment of approximately US $ 160 million. As well as WKP Lake Ranau with an estimated reserve of 210 MW is planned to have a development capacity of only 110 MW. The proposed business pattern is the total project with the highest reference price of US $0.146/ kWh. The project is also targeted to start on stream by 2022.

PLN has previously received assignment rights in several WKPs such as WKP Ulumbu in Manggarai Regency, East Nusa Tenggara with a potential of 40 megawatts (MW); WKP Mataloko in Ngada District, East Nusa Tenggara with potential of 20 MW; WKP Tulehu in Central Maluku District, Maluku) with potential of 60 MW; WKP Tangkuban Perahu-Ciater in Subang Regency (West Java) with potential of 60 MW; WKP Atadei in Lembata District (East Nusa Tenggara) with potential of 10 MW; and WKP Songa Wayaua in South Halmahera Regency (North Maluku) with potential of 10 MW.

According to Tohari, it is possible that PLN will participate in developing geothermal WKP. By partnering PLN can transfer geothermal development experience, thus creating efficient management.

“Maybe we will partner. PLN also the term can not be alone as well. The goal PLN needs to develop it must know also the actual cost how much. So if we have the negotiation experience alone, “said Tohari. (RI)

Source: Dunia Energi