JAKARTA (TheInsiderStories) - The Indonesian government will continue to push the use of geothermal energy in Indonesia, as part of efforts to achieve the use of renewable energy of 23% of total energy usage in Indonesia by 2025. The statement was made by the Energy and Mineral Resources Minister Ignasius Jonan during a visit to geothermal plant (PLTP) Sarulla in North Tapanuli, North Sumatera province on Friday.
“Under the RUPTL (Electricity Supply Business Plan), the renewable energy usage is set at 22.6% (of total energy usage) in 2025. This is our responsibility to control the effect of glass-house effect as well as the use of primary energy efficiently so that the electricity tariff becomes more cheaper,” he said.
PLTP Sarulla Unit 1 with capacity of 1×110 MW, has started Commercial Operation Date (COD) on March 18 2017. The unit 2 of PLTP Sarulla, with capacity of 110 MW, is scheduled to start the COD on Nov. 23, 2017 and Unit 3’s COD on May 23, 2018. PLTP Sarulla unit 3 will also has capacity of 110 MW, making the plant as the largest geothermal power plant in Southeast Asia.
PLTP Sarulla is developed by a consortium of Sarulla Operation Limited (SOL) consisting of PT Medco Power Indonesia (MPI), Itochu Corporation, Kyushu Electric Power Corporation, and Ormat International Inc. The operator (SOL) has so far drilled 13 wells and plans to drill 20 more wells. The EPC of the project is carried out by Hyundai Engineering and Haliburton.
The project is one of the largest geothermal project being developed in Indonesia with total investment of US$1.7 billion. The project is funded by Japan Bank For International Cooperation (JBIC), Asian Development Bank (ADB) and consortium of some commercial banks.
Minister Jonan said his ministry encourages PLTP Sarulla to tap the geothermal energy potentiality in North Sumatera. “We support this geothermal project,” he said.
The operator of the power plant claimed that PLTP Sarulla is one of the most efficient geothermal power plant in Asia as it uses combined cycle turbine. Its binary technology allows the company to reuse the waste gas for additional electricity, said Minister Jonan.
PLTP Sarulla is developed thorugh Joint Operating Contract (Kontrak Operasi Bersama) between PT Pertamina Geothermal Energy (PGE) and Sarulla Operation Limited (SOL) in accordance with amendment of second KOB and Energy Sales Contract (ESC), signed on 14 April 2013.
The power plant’s electricity will be delivered to North Sumatera power grid system and is expected to meet electricity needs in the region.
PGE
Separately PGE targes to launch COD of two geothermal power plants, namely PLTP KRH Unit 1 with capacity of 30 MW and ulubelu Unit 4 with capacity of 55 MW in second semester 2017.
Once with these two projects begin commercial operation, PGE’s geothermal plants installed capcity will rise to 617 MW. The two projects’ investments reached US4398.9 million consisting of US$294.9 million for business development (74%) and US$104 million for non business development. (*)