Govt set to auction 375 MW geothermal plant projects

In the middle of this year, the government is set to auction a number of areas with geothermal energy potential that can be developed, in a bid to increase the capacity of the country?s geothermal power plants, The Jakarta Post reported on Monday.

The areas to be auctioned are expected to generate at least 375 megawatts (MW) of power.

The geothermal director at the Energy and Mineral Resources Ministry Tisnaldi, said the working areas to be offered include Lake Ranau in Lampung and South Sumatra, with a potential production capacity of 110 MW, Mount Lawu in Central and East Java with 100 MW Mataloko in East Nusa Tenggara with 30 MW, Simbolon Samosir in North Sumatra with 80 MW and Way Ratai in Lampung with 55 MW in power potential.

?Regarding Way Ratai, there still needs to be several discussions with state-owned electricity firm PT Perusahaan Listrik Negara to ensure it conforms with its electricity procurement plan. We will keep trying to offer more areas,? Tisnaldi said.

Despite its abundant geothermal resources, the country only has a handful of geothermal power plants. The country is estimated to have 29 gigawatts (GW) of geothermal potential or around 40 percent of the world?s resources. However to date, the installed capacity of geothermal power plants is only 1,341 MW.

This year, there will be only 62 MW in additional capacity that will come from Patuha plant (55 MW), Ulumbu plant (5 MW) and Cibuni plant (2 MW), according to Tisnaldy.

?If we carry out new tenders now, the additional capacity will be seen only in the next 6 to 7 years,? he said, adding that there were around 1,500 MW geothermal projects currently being developed from previous offerings. (*)