PLN, PGE assigned to develop eight geothermal working areas

The government will assign this year state-owned power firm PT PLN and state-owned geothermal company PT Pertamina Geothermal Energy (PGE) to develop eight geothermal working areas amid lack of interest from private investors due among others to the huge investment requirement, Bisnis Indonesia reported on Tuesday.

The paper quoted Director General of New and Renewable Energy Rida Mulyana as saying that the appointment of the two state firms is part of efforts to accelerate the development of the geothermal sector in the country. He added that the policy is in line with Law No 21/2014 on geothermal.

The paper said that according to Ministry of Energy and Mineral Resources document, the eight geothermal working areas have the potential to produce a combined 320 MW of electricity, and will require total investment of US$1.28 billion.

PLN will be assigned to develop four geothermal working areas (or WKPs). The first is WKP Sembalun located in West Nusa Tenggara, with planned capacity of 2x10 MW, and targeted to start commercial operation in 2021. Second is WKP Mataloko in East Nusa Tenggara, with planned capacity of 20 MW and planned operation in 2019. Third is WKP Ulumbu in East Nusa Tenggara with planned capacity of 2x20 MW, with the first unit targeted to start operation in 2020 and the second in 2024. The fourth is WKP Tulehu in Maluku with planned capacity of 2x10 MW, and targeted to start operation in 2018.

Meanwhile, PGE will also be assigned four WKPs. The first is WKP Kotamobagu in North Sulawesi with planned capacity of 4x20 MW, and targeted to start commercial operation in 2025. Second is WKP Iyang Argopuro in East Java with planned capacity of 55 MW, and is targeted to begin commercial operation in 2023. Third is WKP Gunung Gede Pangrango in West Java with planned capacity of 55 MW, and is targeted to start operation in 2024. The fourth is WKP Ciater in West Java with planned capacity of 30 MW and planned operation in 2024. (*)