Aceh and Pertamina sign JV agreement on Seulawah geothermal project

News screenshot from Aceh Portal
Alexander Richter 1 Aug 2017

The Government of Aceh and PT Pertamina have signed the agreement to form a joint venture around the Seulawah geothermal power project in Aceh.

Yesterday, the Government of Aceh signed a Joint Venture agreement for the development of the Seulawah geothermal power project, a joint venture by the Aceh Regional Development Company (PDPA) with PT Pertamina Geothermal Energy.

The signing was done by Director of Regional Development Company of Aceh (PDPA) Muhsin, Director of PT. Pertamina Geothermal Energy Irvan Zainuddin, as well as Aceh Governor Irwandi Yusuf, in Aceh Governor’s office on July 31, 2017.

Aceh through the Aceh Regional Development Company (PDPA) and PT Pertamina through its subsidiary PT Pertamina Geothermal Energy, form PT Geothermal Energy Seulawah (GES) to develop a geothermal power plant in Seulawah.

Aceh Governor Irwandi Yusuf said the project has been on the drawing board for six years. It is expected now that this project can be completed within 3.5 years or a maximum of 4 years, and thereby help with the ongoing electricity crisis in Aceh.

“Hopefully with this signing of the agreement in Aceh constraints for development are removed,” said Irwandi.

Irwandi said that the people of Aceh have long lived in the limitations of electricity, even the bad electricity in Aceh so far has also affected the investment sector hampered.

Irwandi said that the peak load of electricity demand in Aceh is around 325 megawatts (MW), so to serve the needs well, ideally PLN has 50 percent energy reserves of that need, or about 500 MW, but in reality, currently only 340 MW.

On that occasion, Irwandi also explained that this geothermal project has actually been initiated the first time in 2008. The idea was well received by the German Government, which in 2009 was willing to grant funds of $10 million.

Drilling is planned to be conducted soon to determine how much power could be derived from the project. Under conservative estimates, the potential is expected to be up to 165 MW.

For the initial phase of the development, Pertamina and PDPA are planning with the development of 55 MW.

Irwandi also hoped that in the future, geothermal energy can be found at shallower depth, so it will require less capital. He cited as in Sabang that the heat energy of the earth can be obtained at a depth of 1,200 meters. “Hopefully this also happens in Seulawah, so soon we will enjoy enough electricity,” said Irwandi.

Meanwhile, Director of PT. Pertamina Geothermal Energy Irvan Zainuddin said, his company would do everything possible to finish the project within the deadline mentioned Irwandi Yusuf.

The signing ceremony was attended by Deputy Governor of Aceh Ir. Nova Iriansyah, MT, Deputy Chairman of the Aceh House of Representatives, Sulaiman Abda, Assistant Secretary of Aceh, Head of Public Relations and Protocol Secretary of Aceh, Mulyadi Nurdin, and a number of other SKPA leaders.

Source: Aceh Portal