PT Geo Dipa Energi plans to build the second Patuha geothermal power plant located in the Ciwidey region of West Java, said the official on Wednesday (03/11) - Photo by the Company

JAKARTA (TheInsiderStories) – State power producer, PT Geo Dipa Energi plans to build the second Patuha geothermal power plant located in the Ciwidey region of West Java, said the official on Wednesday (03/11). The new turbine is projected to produce an additional power by 55 megawatts (MW) in 2023 and needs an investment of US$197 million.

The director at the energy and mineral resources (EMR) ministry, Ida Nuryatin Finahari said in a written statement, Patuha and other projects Dieng in Central Java, holds tremendous geothermal potential that can be converted into a 400 MW power plant. Currently, the two projects has installed capacity 60 MW, respectively.

“We want to install again with the same capacity at the two wells to reach the government’ targets produce 150 MW by 2023. To that, we plans to drill again in July 2020,” added by Geo Dipa’ president director Riki Firmandha Ibrahim

Beside the two projects, currently, he elaborated, there are potential three new wells in five locations at eastern Indonesia. The site located in Waisano and Nage, East Nusa Tenggara and Jenolo in Halmahera, North Maluku, also Bituang in Southeast Sulawesi. Others, he said, still waiting for government approvals. The three wells have potential resources of 30 MW.

According to director of state assets at the finance ministry, Meirijal Nur, Geo Dipa, PT Sarana Multi Infrastruktur (SMI) and PT Penjamin Infrastruktur Indonesia (PII) has obligation to run the “government drilling program”. Through the program, the government wants to help the investors to invest in Indonesia’ geothermal projects.

Jointly, the third parties will explore the potential geothermal projects around the archipelago starting an early process to obtained proven resources. So far, he adds, not many investors are interested in geothermal projects because the exploration costs very expensive.

“That’s why the government take over the position. We and World bank has an agreement to run the Geothermal Resource Risk Mitigation (GREM) project in the form of soft loans to run the government drilling program,” said Nur.

Based on World Bank data, GREM project need costs $465 million and ready to disburse if Indonesia needed. The official added, combined with SMI loans, guaranteed by PII and implemented by Geo Dipa it will help to realize the program.

He stated, “After proven we will be offered to investors, both domestic and foreign, including Geo Dipa.”

Indonesia is committed to providing clean energy that is able to reduce gas emissions by 29 percent in 2030. The government is targeting geothermal energy to contribute 7,241.5 MW in 2025 to support the achievement of new and renewable energy by 23 percent.

In addition to Geo Dipa, the government has assigned two state-owned enterprises, PT Pertamina and PT Perusahaan Listrik Negara (PLN) to explore new and renewable energy in the country. At present, the total installed capacity of the three companies around 744.5 MW or 38.2 percent of the total installed capacity.

Geo Dipa itself has completed and operates the Patuha 1 Geothermal Electricity Project with an installed capacity of 735 MW. The company is currently developing Candradimuka, Umbul Telomoyo Temple, and Arjuno Welirang in Central Java.

The Asian Development Bank (ADB) estimates that the project requires US$475 million and to be funded from company equity and a soft loan from the agency.

The groundbreaking of the project was carried out by finance minister Sri Mulyani Indrawati in April 2019 and is expected to start operating in 2023.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com