PT Pertamina Geothermal Energy (PGE) and PT PLN Indonesia Power (PLN IP) have signed a Letter of Intent (LOI) for the purchase of electricity from two geothermal power projects in Indonesia, namely the 15-MW Lahendong Bottoming Unit in North Sulawesi and the 30-MW Ulubelu Bottoming Unit in Lampung. The agreement was announced during the recently held 12th Indonesia International Geothermal Convention & Exhibition (IIGCE).
The signing of the LOI further formalizes the tariff agreements that had already been finalized earlier this year, both for Lahendong and Ulubelu.
As PLN Indonesia Power President Director Bernadus Sudarmanta, the two new units will use bottoming technology to process and utilize heat from existing geothermal power plants. This helps optimize the potential of geothermal resources and increase installed capacity without relying entirely on new development in Geothermal Working Areas (WKPs).
“Utilizing bottoming technology is one way to optimize geothermal resources in existing WKPs. This way, generation capacity can be increased by optimizing available assets and resources,” added Bernadus.
The collaboration between PGE and PLN rings true to the message conveyed by Energy and Mineral Resources Minister Bahlil Lahadalia during his speech at the IIGCE. The Minister called for close cooperation between regulatory agencies and project developers to ensure that geothermal projects continue to progress through standardized processes and clear financial incentives. An important part of the country’s ambitions for geothermal growth is a review of the current incentive and tariff scheme for geothermal power.
“When regulators, PLN, developers, and all stakeholders work together, I am confident that we can optimize Indonesia’s geothermal wealth into reliable, clean energy and become a driving force for Indonesia in the future,” said Bahlil.
Source: Kontan.co.id and SWA.co.id
