PLN to receive $640m for geothermal development of six projects, Indonesia
Indonesian state-power company PT PLN receives up to $640 million in funding by PT SMI for the development of six geothermal working areas with a potential of up to 160 MW in power generation capacity.
As reported today, the Indonesian government is seriously pursuing the target of increasing renewable energy mix by 23 percent by 2025. It is seen from PLN’s investment to build geothermal power plant (PLTP) in six geothermal working areas (WKP).
Director of Strategic Procurement I PT PLN (Persero) Nicke Widyawati said it has received $640 million from PT Sarana Multi Infrastruktur (SMI). The funds are used to find the source of geothermal steam and build a PLTP. ” Six WKP already get the assignment and the decision letter has been received, ” he said in a meeting yesterday.
The six WKPs have the potential to generate 160 MW of electricity. It is relatively small compared to the installed capacity target of PLTP of 6,700-7,000 MW in the next 10 years. After obtaining the loan fund, PLN will conduct further survey and drilling.
In addition, PLN is preparing the development of eight other WKP. PLN plans to hold a third party to become a member of the consortium. ” So it could be faster, ” adds Nicke.
According to Director of Geothermal of the Ministry of Energy and Mineral Resources (ESDM) Yunus Saefulhak, six WKPs to be worked on by PLN are in Atedei (NTT), Songa Wayaua (North Maluku), Tangkuban Perahu (West Java), Borapulu (Central Sulawesi), Oka Ile Ange (NTT), and Gunung Sirung (NTT).
The loan for PLN comes from the SMI-managed Geothermal Fund. The total fund of Geothermal Fund is only Rp 3.8 trillion ($282 million). The sources come from the State Budget (APBN) worth Rp 3.1 trillion ($230 million) and the World Bank at Rp 711 billion ($53 million).
Meanwhile, until 2019, the Minister of Energy and Mineral Resources (EMR) Ignatius Jonan promised an additional supply of electricity from EBT of 3,000 MW. Throughout the last 10 months, Jonan said, a power purchase agreement has been made from the EBT plant.
In addition, there is a new power supply from PLTP of 300 MW. “With all due respect to my predecessor, I do not think anyone can reach 700 MW in 10 months,” said the former president of PT KAI.
To date, the energy mix of EBT has reached 12 percent. In order for electricity from EBT to remain affordable, the government encourages electricity consumption from geothermal and water. In line with the provision of electricity supply, electricity consumption for the transportation sector will be increased.
The target, no more fuel consumption in transportation. ” If you can start walking. France by 2040 is not allowed to sell fossil fuel cars. India even 2030, ” he said.
If the supply of electrical energy comes from domestic environmentally friendly energy, dependence on the use of fuel oil will decrease.
Source: Jambi Express