Feasibility study approved for Blawan Ijen geothermal project, Indonesia
Having finished the exploration phase, PT Medco Cahaya will now proceed to the drilling at the Blawan Ijen geothermal project in East Java, Indonesia.
During a community event for the Balawan Ijen Geothermal Project Unit 1 Development, Directorate General of New, Renewable Energy and Earth Conservation (EBTKE) Director of Geothermal Harris Yahya provided important updates on the status of the geothermal project in East Java, Indonesia.
PT Medco Cahaya Geothermal (PT MCG), the developer of the project, has received approval for a feasibility study o the Blawan Ijen Geothermal Project from the Ministry of Energy and Mineral Resources (MEMR). With this approval, the project proceeds to the exploitation phase where PT MCG has plans to drill four production wells, two reinjection wells, and one make-up well. Other supporting infrastructure including access roads, well pads, and drilling water distribution lines will also be built.
PT MCG is a joint venture between PT Medco Power and Ormat Technologies. In 2019, Ormat secured a 49% stake in PT MCG and, concurrently, the Blawan Ijen Geothermal Project.
According to the results of the exploration studies submitted by PT CG, Phase 1 of the development will have a target capacity of 31.4 MW (net). We had reported on the conclusion of exploration works in Blawan Ijen earlier this year. However, the Electricity Supply Business Plan of PT PLN (Persero) indicates a total development plan of 110 MW with a COD date of 2024 for Phase 1 (55 MW) and 2026 for Phase 2 (55 MW).
If successfully developed, Blawan Ijen will be first geothermal power plant in East Java. According to the ESDM, East Java has a total geothermal potential of 1012 MW across 12 locations. Only three of these are in the process of development so far (including Arjuno-Welirang and Ngebel-Wilis), with only Blawan Ijen showing results at this point.
The Government of Indonesia continues to encourage the development of geothermal projects to contribute to the goal of increasing by 23% the share of renewable energy in the power mix by 2025. Earlier this year, Presidential Regulation 112/2022 was signed to set new prices for the purchase of power from renewable sources, including geothermal.