PLN to form geothermal subsidiary
Monday, March 27 2006 - 01:32 AM WIB
State electricity company PT PLN considers establishing a subsidiary specialized in generating geothermal power.
Company president Eddy Widiono said on Saturday that PLN would sell shares in the new firm to public in order to raise capital. At least 300 investors are needed to provide a start-up capital of Rp 24 billion for the firm to be called PT Resolusi Energi.
?There are still many studies that should be carried to form the publicly-owned firm that will use geothermal steam as source of energy. But, PLN is ready to gamble on the establishment of the firm,? Eddy said as quoted by Kompas.
According to him, Indonesia has the potential to generate 27,000 megawatt (MW) of power using geothermal resources. However, only 780 MW of power has thus far been generated using the resource. (*)