Panax to raise capacity of Ngebet geothermal project

By Nur Azizah

Australian-listed Panax Geothermal Limited said that it would increase the generating capacity of its Ngebel geothermal project from 165 Megawatt (MW) to 220 MW, in response to Indonesia?s growing demand for secure and renewable energy.

The company said in a press statement on Tuesday that Ngebel geothermal project, a joint venture between Panax and Indonesian private company PT Bakrie Power, is expected to increase capacity up to 220 MW, allowing the project to deliver more renewable energy to the country which power generation still dominated by fossil-based fuels.

In Indonesia, only 65 percent of residents currently have access to reliable, and grid-connected power, a problem that the Indonesian government is seeking to fix by providing incentives to accelerate the development of geothermal energy, which is abundant in the country.

The Ngebel Geothermal Project is also expected to have its tariff pricing reviewed and increased in line with the proposed feed-in tariff increase soon to be offered by the Indonesian government.

Panax Geothermal Managing Director Kerry Parker said the increase in planned capacity was a sign of Indonesia?s growing demand for geothermal.

?The Ngebel Project is originally expected to grow up to 165 MW in stages, but we can now confirm that the Indonesian government is trying to increase its initial capacity to 220 MW,? Parker said.

?In addition to this and based on our recent discussions in Indonesia, we are confident of being able to secure an increased electricity tariff for our Ngebel Project, which is located in East Java, directly under the national transmission grid,? he said.

He added that Panax was experiencing sustained and notable growth within Indonesia and was reaping the benefits of an environment specifically designed to support investment in renewable energy and encourage geothermal energy development.

?These latest developments are clear-cut examples of the benefits of investment in Indonesia and Panax looks forward to future growth and expansion in the country,? he said.

Editing by Benget Besalicto Tnb.