Ormat Technologies may be appointed to develop N. Sumatra geothermal project
Monday, December 5 2016 - 02:31 AM WIB
US-based Ormat Technologies, which has set up a consortium with Indonesian firm PT Optima Nusantara, may potentially be appointed as the developer of the Simbolon Samosir geothermal power plant project in North Sumatra, if no other bidder participates in the ongoing tender, an official said.
Bisnis Indonesia quoted Director of Geothermal at the Ministry of Energy and Mineral Resources, Yunus Saefulhak as saying Monday that Ormat participated in the tender for the Simbolon Samosir geothermal working area when it was first opened in October, but as by the November 22 deadline no other bidder made an offer, the ministry decided to repeat the tender on December 1.
Yunus said that if no other bidder participated in the repeated tender by the December 19 deadline, the Ormat consortium has the potential to be directly appointed as developer of the project. But he said the direct appointment will also be based on evaluation of various aspects including technical, financial, work program, and exploration commitment. ?If the interested (company) remains one, there will be direct appointment,? Yunus said.
The 168,800 hectares Simbolon Samosir geothermal working area, spanning the regencies of Samosir, Toba Samosir, Tapanuli Utara, Humbang, Hasundutan, and Dairi in North Sumatra Province, holds estimated reserves of 150 MW and temperature reservoir estimate of 240 degree Celsius.
The government plans to develop a 110 MW geothermal power plant in the area with commercial operation date target of 2024. The electricity ceiling price from the project has been set at US$15.5 per kWh in accordance with Minister of Energy and Mineral Resources Decree No 17/2014. (*)