Details on Sarulla Project, North Sumatra Indonesia

Details on Sarulla Project, North Sumatra Indonesia Mount Kerinci, Sumatra, Indonesia - not directly related to story (source: Tom Casadevall, commons/ wikimedia)
Alexander Richter 7 Oct 2010

An overview article on the the Sarulla geothermal power plant project in North Sumatra, Indonesia, a JV between Indonesian PT Medco Energi Internacional, U.S. listed Ormat Technologies and Japanese Itochu and Kyushu Electric, provides a good overview on the project.

The Sarulla Geothermal Power Project in North Sumatra, Indonesia is a joint project by PT Medco Energi Internacional, Ormat Technologies, Itochu and Kyushu Electric. The estimated investment is about US$1 billion.

“The Sarulla Geothermal Power plant was first considered in 2005. PT Geo Dipa Energi, a company jointly owned by PLN and PT Pertamina was awarded the contract to build the plant. However, the construction did not take place due to the purchase price dispute between the consortium and the PLN.

PLN had previously agreed to pay $4.64 per KWh for electricity purchased from the plant but the consortium was insisting on a higher price due to increase in the cost of construction by $200m. After long negotiations the deal was finally signed in April 2010 for $6.79 per KWh for a period of 30 years.

The new ESC allows the consortium to pay high tariffs in the early years of commercial operation. The tariff will be gradually reduced in later years. The parties to the contract have also agreed for a 90 day schedule to resolve other contractual issues to facilitate the financing and signing the revised ESC.

The ESC is not yet finalised and is subject to verification by the state audit agency. It is also pending approval from the Ministry of Energy and Mineral Resources.”

For full details on the projects see link below.

Source: Power Technology