PLN, Supreme Energy agree on adapted PPA for Rantau Dedap geothermal project
The 86 MW Randau Dedap geothermal power project in Indonesia can now continue with the signing of an amendment to the existing power purchase agreement. The project is a joint development by PT Supreme Energy, Marubeni and Storengy.
The 86 MW Rantau Dedap geothermal project had a signed power purchase agreement, signed in 2012, but not much has happened with the project since then. We reported earlier on ongoing negotiations to adapt the PPA and it now seems things have been conclude.
State-owned power utility PLN and the developer PT Supreme Energy Rantau Dedap (SERD) have now signed the amendment to the PPA. The project is a joint development by PT Supreme Energy, Marubeni and GDF Suez (now Storengy).
“The signing indicates that the Government is flexible and accommodative of new renewable energy The agreement on the price of electricity for Rantau Dedap is also a good faith of the Government for the development of geothermal,” said SERD President & CEO Supramu Santoso in a press release on this week.
The PPA Amendment which includes tariff adjustment is an important step for the Rantau Dedap PLTP project, following the completion of the drilling of six exploration wells by 2015 and feasibility studies in 2016. The exploration activities confirmed that the capacity to be generated is sufficient to build a power plant with a capacity of up to 86 MW (net) for phase I.
Operation of the Rantau Dedap geothermal power plant is expected to start operation in 2021. The price of the PPAs lies between $0.08 and $0.11/ kWh.
For this Rantau Dedap PLTP project, the PPA electricity price adjustment and amendment process has started since 2016 and at the beginning of November 2017 , ESDM Minister Ignatius Jonan finally approved the price adjustment.
“The success of this tariff adjustment is the result of intensive and constructive negotiations between the parties, driven by a common goal to accelerate the development of geothermal energy as part of renewable energy in Indonesia,” Supramu said.
After the tariff adjustment phase, SERD will perform the financial close process , exploitation drilling, and power plant construction to achieve Commercial Operation Date (COD) in 2020. The electricity generated will be sent to the Sumatra network built and owned by PT PLN (Persero) based on PPA for 30 years.
PLTP Rantau Dedap is a National Strategic Project. The plant is also a national project and is included in the 10,000 MW Power Stage Development Program Phase II based on Presidential Regulation no. 04 of 2010 and Regulation of the Minister of Energy and Mineral Resources (ESDM) No 15/2010 jo.01 / 2012 jo. 21/2013.