PT Supreme Energy expects to start work on 65 MW expansion of Muara Laboh this year

PT Supreme Energy expects to start work on 65 MW expansion of Muara Laboh this year Drilling Rig on site of the Muara Laboh geothermal project, Indonesia (source: Sumitomo Corp.)
Alexander Richter 17 Jan 2020

With the first phase of the Muara Laboh geothermal power plant successfully started, PT Supreme Energy is now targeting to start work on a 65 MW expansion of the plant this year.

PT Supreme Energy Muara Laboh (SEML) will develop the Muara Laboh Phase II geothermal power plant (PLTP) with a capacity of 65 MW with an investment of US $ 400 million this year, so a news report from Indonesia this morning.

Senior Manager for Site Support Gov. Relations & Community Development Yulnofrins Napilus said the increase in the capacity of renewable energy-based power plants is part of SEML’s support to the government in achieving the target of utilizing renewable energy (EBT) by 23% by 2025.

Phase II development is expected to begin this year after the licensing is issued. Previously, SEML had successfully operated the Muara Laboh PLTP, Phase I with a capacity of 85 MW, located in Solok Selatan, West Sumatra.

“PT Supreme Energy is also in talks with the Ministry of Energy and Mineral Resources [ESDM] and PLN to develop phase II with a capacity of 65 MW. This development is expected to require an investment of around US $ 400 million,” he said as quoted in the release, Friday (17 / 1/2020).

Yulnofrins revealed that prior to the geothermal power plant, in South Solok there were frequent blackouts almost every day due to the limited PLN electricity transmission network and frequent disruptions. However, after the operation of Muara Laboh PLTP, now there are no more blackouts.

Blackouts can occur three times a day. In fact, the electricity demand in South Solok is very small, which is only only 8 MW.

“PLN’s electricity source from Solok is far, around 100 kilometers. That’s not ideal because it crosses hills that are easily landslides, easily disturbed like fallen trees. Now with the PLTP, PLN has built better infrastructure, including providing two substations “the mains and 150 kVA cable transmissions are more sturdy, tall, and not easily affected by interference,” he said

In addition to the community, the existence of Muara Laboh PLTP also has a positive impact on the local government. The regional government gets additional revenue of IDR 15 billion per year for the district government where the PLTP is located.

“Hopefully the government still supports us for the development of phase II because unfortunately we do not optimize the potential. Sooner or later the electricity demand will experience growth that demands the availability of supplies,” he said.