PGE allocates $300 million in funding for geothermal development 2018

PGE allocates $300 million in funding for geothermal development 2018 Well of Pertamina at Kamojang, Indonesia (source: ThinkGeoEnergy, creative commons)
Alexander Richter 14 Dec 2017

Pertamina Geothermal Energy allocates $300 million in investments into geothermal projects, specifically for the 60 MW Bukit Daun project and for the Seulawah project in Aceh.

Announced today, PT Pertamina Geothermal Energy (PGE), a subsidiary of PT Pertamina (Persero) has allocated US $ 300 million for 2018. The figure is lower than an initially mentioned US $ 314 million.

“Next year is important to implement the projects already underway, including exploration. “We are still adding more exploration activities to increase our reserves by 2018,” said Irfan Zainuddin, PGE’s President Director to World Energy.

PGE will start exploration on two projects with great potential next year, the Geothermal Working Area of Bukit Daun in Bengkulu and WKP Seulawah in Aceh.

According to Irfan, the Bukit Daun project will become PGE’s priority next year because it already has a clear plan for the development scheme to be undertaken, including the confirmed potential of 60 MW.

“Maybe Bukit Daun can be developed quicker, because we are faster explorers and already have a proven resource. Currently we estimating a potential capacity of at least 60 MW, “he said.

For Seulawah, PGE estimates it will still require two to three years because the project is still in its initial survey stage. Based on preliminary calculations, PGE believes the potential of Seulawah can reach 165 MW, but for the potential stage developed only about 2× 55 MW.

Irfan said PGE is still expanding in areas with high consumption of electricity. But in the future the company has also been eyeing developing geothermal in eastern Indonesia.

To be accelerated, he added, geothermal development, especially in remote areas still require incentives from the government. There are several necessary incentives, such as from the taxation side and the electricity pricing mechanism.

Source: Dunia Energi