Government to assign PLN to develop two additional geothermal areas

The Ministry of Energy and Mineral Resources will assign state-owned electricity firm PT PLN to develop two additional geothermal working areas (WKP), namely WKP Bora Pulu in Central Sulawesi Province and WKP Gunung Sirung in East Nusa Tenggara Province, Bisnis Indonesia reported on Tuesday.

The paper said that WKP Bora Pulu is estimated to have geothermal reserves of 123 MW, and PLN is expected to develop a 40 MW geothermal power plant (PLTP). Meanwhile, the WKP Gunung Sirung is estimated to have reserves of 125 MW with plan to develop a 5 MW PLTP. The two power plants are targeted to start operation in 2025.

Director of Geothermal at the ministry, Yunus Saefulhak told the paper that a ministerial decree on the appointment of PLN to develop the two WKPs is expected to be issued at the end of this year.

Meanwhile, PLN is expected to submit to the ministry proposals for the development of the two projects.

PLN has been assigned to develop six WKPs, and is targeted to develop a total of 14 WKPs through 2019 with potential electricity generating capacity of 1,000 MW. The utility firm has recently obtained US$640 million loans from state-owned infrastructure fund PT Sarana Multi Infrastruktur, which manages the government?s geothermal fund. Yunus said that the loan will be used to help finance exploration activities at the WKPs assigned to PLN. (*)