PLN obtains funds from SMI for geothermal projects

State-owned electricity firm PT PLN has signed a MoU with state-owned financing firm PT Sarana Multi Infrastruktur (SMI) under which the latter will provide up to US$640 million funds to help finance the development of six geothermal working areas, Kontan reported on Thursday.

The paper quoted PLN Director of Strategic Procurement I Nicke Widyawati as saying that the funds will be used to among others finance exploration activities at the geothermal working areas. ?We have obtained preliminary data from the Ministry of Energy and Mineral Resources but we?ll need to carry out further survey (to estimate the geothermal potential),? she said.

The paper said the government has assigned PLN to develop six geothermal working areas with potential electricity generation capacity of 160 MW. The paper did not disclose the name of the geothermal working areas.

But this portal quoted Head of New and Renewable Energy Division at PLN, Tohari Hadiat as saying early August that PLN has been assigned to develop three geothermal working areas, namely WK Atadei in East Nusa Tenggara with power generating capacity potential of 10 MW; WK Songa Wayaua in North Maluku with power generating potential of 10 MW; and WK Tangkuban Perahu in West Java with power generating potential of 60 MW. He said PLN will seek partners to help develop the projects.

SMI, which specializes in providing funds for infrastructure projects, obtains so-called geothermal funds from international donors including the World Bank. (*)