Japan International Cooperation Agency give fresh loans US$225 million for a geothermal power plant projects, Hululais - Photo by PLN

JAKARTA (TheInsiderStories) – Japan International Cooperation Agency (JICA) give fresh loans US$225 million for a geothermal power plant projects, Hululais, local media reported yesterday (10/15). Early 2019, state-owned power producer PT Perusahaan Listrik Negara (PLN) and PT Pertamina Geothermal Energy (PGE) has ground the 110 megawatts (MW) projects located in Bengkulu province.

The Hululais project is one of the key projects of Crash Program II. Both companies has requested the pre feasibility study to the Japanese Government in 2010 for obtaining ODA loan.

Previously, PLN reported needs an investment around $1 billion to complete eight geothermal projects during 2023 – 2024. While, Indonesian government noted the country needs around $15 billion funds to meet the geothermal targets until 2025.

Currently, PLN has 11 geothermal working areas, which is three blocks were developed by the producer, and eight others were worked with partners. The eight blocks are Kepahiang in Bengkulu with a potential of up to 110 MW, Songa Wayaua in North Maluku (10 MW), Atadei in Nusa Tenggara Timur or NTT (5 MW), Sirung in NTT (5 MW), Tangkuban Parahu in West Java (60 MW) ), Oka Ile Ange on Flores Island, NTT (10 MW), Mount Ungaran in Central Java (55 MW), Lake Ranau in Lampung (20 MW).

To work on the eight blocks, the power producer has partnered with five companies. The five who have passed the pre-qualification are Indonesia-based oil and gas drilling contractor PT Apexindo Pratama Duta Tbk (IDX: APEX), Indonesian oil and gas producer, PT Medco Energi Internasional Tbk (IDX: MEDC), Halliburton Indonesia, United States’ renewable energy company Ormat Technologies Inc., (NYSE: ORA), and Japan’ Itochu Corporation.

Within the next three months, PLN will announce the distribution of blocks which will be worked on by the five partners. In this division, there are partners who will work on more than one block with PLN.

Moreover, PGE, a unit of state energy company PT Pertamina  targeting to installed geothermal power plants with total capacity 1,112 MW in 2026, said the president director Ali Mundakir.

Earlier this month, PGE conducted a first synchronize geothermal energy in South Sumatra with a capacity of 55 MW and is targeted to operate commercially by the end of August, he adds. At present, PGE already operates five geothermal areas with a total installed capacity of 617 MW, consisting of Kamojang 235 MW in West Java, Ulubelu 220 MW in Lampung, Lahendong 120 MW in North Sulawesi, Karaha 30 MW in West Java, and Sibayak 12 MW in North Sumatra.

Unit of Pertamina is also developing geothermal at the Hululais project, Sungai Penuh project in Jambi, and geothermal energy unit 2 in South Sumatra, as well as three exploration initiatives in the Seulawah Project in Aceh, Gunung Lawu Project, Central Java, and the Bukit Daun Project in Bengkulu.

Mundakir estimates the 617 MW of geothermal energy will reduce emissions by 3.2 million tons of CO2 per year and save oil and gas reserves by 29 MBOEPD. He added that geothermal development is one of Pertamina’ aspirations in the framework of developing green energy.

At the same event, director general for renewable energy at the energy and mineral resources (EMR) ministry Sutijastoto revealed only 1,948.5 MW or 7.8 percent of the geothermal potential is utilized. To be able to boost 23 percent of renewable energy in 2025 geothermal is expected to be 7,200 MW.

“So an additional 5,000 MW is needed with funds of around $15 billion in the next 5 years,” he stated.

The government has targeted the use of new and renewable energy in the electricity sector to reach 23 percent by 2025. And, of the total energy mix in the electricity sector, contributions from geothermal energy are expected to contribute up to 11 percent by 2025.

Coal currently makes up around 60 percent of the country’s energy mix versus about 5 percent from geothermal power, according to data from PLN.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com