Pertamina Geothermal wins bid for 165 MW Gunung Lawu project

Gunung Lawu, East Java, Indonesia (source: flickr/ Ridho Akbar Mauludi, creative commons)

Alexander Richter 3 Mar 2016

Pertamina has won a bid for the geothermal power project at Gunung Lawu in East Java, as reported this morning by the Jakarta Post.

There were two companies bidding for the project, Pertamina and Star Energy Geothermal, according to the Directorate of Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources. Pertamina offered an electricity price of $0.10/ kWh for the future geothermal power plant, while Star Energy offered $0.14/ kWh.

The project will be developed by Pertamina Geothermal Energy, which “plans to follow up with an exploration survey, evaluation of moves to determine drilling coordinates and preparations for exploration drilling, including obtaining permits, which will take some time,” Irfan Zainuddin, PGE President said. “Results of explorations will determine the next steps.”

The Gunung Lawu geothermal working area has an estimated geothermal power generation potential of 165 MW. The working area stretches over two provinces and several regencies — Karanganyar, Sragen and Wonogiri in Central Java, as well as Ngawi and Magetan in East Java.

The open bid for the Gunung Lawu geothermal working area is part of a number of offerings held by the new-renewable energy office to speed up electricity production capacity from renewable resources.

Apart from Gunung Lawu, a number of open bids are still running, including for the Danau Ranau working area in South Sulawesi, Way Ratai site in Lampung, Marana in Central Sulawesi and Gunung Talang Bukit Kili in West Sumatra. Tenders for the projects are still ongoing. The new renewable energy office expects the open bids to be completed by April or May to allow winning companies to quickly progress on the projects.

Source: Jakarta Post