Minister urges PLN to speed up power price negotiation with geothermal developers
Monday, November 30 2015 - 01:53 AM WIB
The minister made the remarks in a statement issued Saturday following a visit to the Muara Leboh geothermal power plant project in West Sumatra, whose developer PT Supreme Energy Muara Leboh, a unit of PT Supreme Energy, has been engaged in protracted power purchase price negotiation with PLN.
?We have a large geothermal potential, in fact, experts said that about 40 percent of world?s geothermal resources are located in Indonesia. But if there?s no breakthrough, in completing existing geothermal projects, then investors will not be interested in entering the sector,? Sudirman said, adding that to help increase the utilization of geothermal as the key renewable source of energy in the country, obstacles must be quickly resolved.
?I demand PLN to accelerate the negotiation process with the developers not only in relation to Muara Leboh geothermal power plant project, but also other projects by observing the latest condition and development,? Sudirman explained.
CEO of PT Supreme Energy Supramu Santosa said that his company is currently still in negotiation with PLN over the price of power to be purchased by the latter from the Muara Leboh project.
The Muara Leboh project started in 2008 following the completion of survey activities during the year, and currently has completed drilling program at eight wells, with the finding of proven reserves of about 80 MW.
Supreme Energy is seeking for price negotiation as the geothermal reserves found was lower than the initial estimate of 220 MW. Supreme Energy has already spent about US$130 million in the project.
Editing by Reiner Simanjuntak