Hitay hopes to conclude PPA for geothermal project this year
Monday, August 7 2017 - 02:46 AM WIB
PT Hitay Daya Energi aims to sign this year power purchase agreement (PPA) with state-owned electricity firm PT PLN for the planned development of a 20 MW geothermal power plant (PLTP) in Gungung Talang-Bukit Kili geothermal working area, West Sumatra Province.
?We?re rushing to complete the PPA, if possible this year. In the first quarter of 2018, we plan to start drilling of the first geothermal well, out of the target to drill four wells in the area,? said Managing Director of Hitay, Julfi Hadi to Petromindo.com over the weekend.
He said that the electricity tariff of the PLTP Gunung Talang-Bukit Kili power plant project has been set at 12.75 US cents per kWh during a tender process.
The company was appointed by the government last year to develop the 27,000-ha Gunung Talang-Bukit Killi geothermal working area, located in Solok Regency, which has estimated reserves of 65 MW, according to the Geology Agency. The government assigns Hitay to develop a 20 MW power plant, which is targeted to start operation in 2022.
"We are focusing on the development of 20 MW, and we will do the next development in following phase, which we believe is far more than the estimated capacity during tender. We want it to be as quickly as possible, so that it can be economical," he said.
Julfi said currently the company is completing infrastructure work to support the power plant project.
"Apart from that, we are also making campaign to introduce the project to the local people there," he explained.
Editing by Reiner Simanjuntak