Rantau Dedap Geothermal Loan Agreement Deal (Photo Credit : Supreme Energy Rantau Dedap)

JAKARTA (TheInsiderStories)–PT. Supreme Energy Rantau Dedap (SERD) started exploitation stage in Rantau Dedap Geothermal Power Plant located in Muara Enim, Lahat, and Pagar Alam, South Sumatra characterized by wells drilling of RD-I3 on Saturday (4/8).

Geothermal Power Project Dedap Rantau will provide additional non-tax state revenue of US$106.87 million for the exploitation and utilization.

It also brings the additional income namely the total contribution of US$626 460 explorations, total Fixed Fee for exploitation and utilization (30 Years) amounted to US$4.25 million, contribution for non-tax revenue/royalties assuming the generation of electricity 681.9 GWh per year of US$85 million during the exploitation and utilization, and production bonus for 3 Muara Enim, Lahat and Pagar Alam amounted to US$17 million during the production.

This geothermal power plant will be developed in two phases with an overall capacity of 220 MW. Phase I of 86 MW is planned to be COD in mid-2020 while the second phase of 134 MW is targeted to COD in 2025.

Rantau Dedap geothermal power plant will be able to provide electricity for more than 130 thousand households. In addition to the construction phase, the project will create 1200 new jobs.

Geothermal energy is becoming one of the national priorities, given the magnitude of geothermal resources Indonesia reached 28.5 GW. The installed capacity of geothermal power plants in Indonesia up to now about 1948.5 MW, and is the second largest producer of geothermal electricity in the world, after the United States.

The Government through the Ministry of Energy and Mineral Resources has given approval to SERD to enter the exploitation phase by letter Minister No. 2224/31/MEM.E/2018 dated March 9, 2018. This approval was given on the basis that PT SERD has completed exploration activities (2010-2018) includes geoscience surveys, infrastructure development, drilling six exploration wells and test wells and the preparation of a feasibility study document.

SERD as holder of License Geothermal, has reached financial close on March 23, 2018 with the Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB), Nippon Export and Investment Insurance (NEXI) and international commercial banks (Mizuho Bank, Ltd., Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation) amounted to US$540 million for the development of Unit 1.

The total cost for the project is about US$700 million. In addition, PT. SERD has also received a price adjustment through amendments to the power purchase agreement (PPA) with PT. PLN (Persero) on November 6, 2017, which was originally USD 8.86 cent per kWh to 11.76 cents USD per kWh.

Exploitation in Rantau Dedap Geothermal Project includes drilling 16 geothermal wells and coupled with the construction of geothermal power plants Dedap Rantau Phase I with a capacity of 86 MW by the consortium of PT. Engineering Industries and Fuji Electric Co. Drilling RD-I3 is the first of 16 wells drilled exploitation (14 production wells and two injection wells) with an average capacity of 7.8 MW / well.

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