PLN invites partners for joint study in three geothermal sites in Indonesia
PT PLN is inviting experienced partners to conduct joint studies for resource and feasibility assessment of three geothermal working areas in Indonesia.
State-owned electricity company PT PLN (Persero) is inviting qualified and experienced partners to conduct joint studies, which will proceed with partner selection, for the development of three of PLN’s Geothermal Working Areas (WKP) in Indonesia.
Interested participants may acquire the EoI form and NDA draft by registration through email to geothermal.energy@pln.co.id cc: tony.widiatmoro@pln.co.id and burhanuddin.aulia@pln.co.id not later than 14:00 Western Indonesia Time on the 18th of November 2024. The schedule of the Pre-Proposal Meeting will be announced later.
The three sites considered under this invitation are as follows:
- WKP Tulehu (20 MW) – Central Maluku Regency, Maluku Province
- WKP Mt. Tangkuban Perahu (40 MW) – Subang, Bandung, and Purwakarta Regency, West Java Province
- WKP Mt. Ungaran (55 MW) – Semarang and Kendal Regency, Central Java Province
PLN, as the holder of geothermal working area licenses, commits to developing its Geothermal Working Areas (approximately 260 MW) assigned by the Government of Indonesia under Geothermal Law No. 21/ 2014. PLN has finished preparing detailed 3G Studies (Geology, Geochemistry, and Geophysics) for the Geothermal Working Areas. For Tulehu, 5 (five) exploration wells have been drilled by PLN.
The Participants may choose all, 1 (one), or 2 (two) of the Geothermal Working Areas.
The Participants may consist of either (i) a single entity or (ii) a Consortium.
Scope of work
The scope of the work for the project is briefly summarized below:
- The selected partner(s) through the project company will sign a Geothermal Exploration and Energy Conversion Agreement (GEECA) with PLN to carry out all the works related to the PLN Geothermal Working Areas, which include drilling activities, feasibility studies, construction of the plant, energy conversion, and operation and maintenance
- During the exploration period, PLN is responsible for obtaining permits, acquiring land, and constructing drilling infrastructure according to the design proposed by the project company.
- Meanwhile, the project company’s responsibilities include conducting studies, preparation works and executing the exploration drilling activities. Upon successful exploration of geothermal resources and confirmation of the project’s economic viability, the project will proceed with the involvement of both the selected partner(s) and a PLN Subsidiary.
- The selected partner(s), along with the PLN Subsidiary, will be responsible for operating and maintaining the Geothermal Steam Field Facility, handling the design, engineering, financing, construction, testing, commissioning, ownership, operation, and maintenance of the Geothermal Power Plant, with the obligation to transfer ownership to PLN eventually.
This invitation continues the partner selection process carried out previously using the Geothermal Exploration and Energy Conversion Agreement (GEECA) scheme. However, in this process, Participants will be able to conduct comprehensive studies in advance. PLN is open to adjusting the terms and conditions in the GEECA scheme by considering input from Participants, which is part of the studies’ integral aspect.
Summary of process
After registration, the Participants shall sign and submit an Expression of Interest (EoI) and a Non-Disclosure Agreement (NDA). Once it is submitted, the GEECA Document and resource study data report (Data Room) will be shared. The participants then shall prepare and submit a proposal consisting of results analysis of technical data and preliminary study, gap analysis, plan for additional study, and input on the GEECA scheme. The proposal will be evaluated and intensively discussed with the Participants to conclude with the Joint Study Agreement.
The Partner(s) interested in doing the Joint Study will prepare and submit a Study Report consisting of a field/detail study, comprehensive and integrated analysis, exploration plan, development plan (may only apply for Tulehu), preliminary techno-economic study, and modification or input on the GEECA scheme.
Following the Study Report, the Partner Selection will be conducted with either a limited tender or direct appointment method, exclusive only to the Participant(s) completing and submitting the Study Report based on the Joint Study Agreement.
The milestone process for partner selection is generally illustrated here: https://tinyurl.com/PLN-
Source: Email correspondence
