Indonesia Offers $420m Geothermal Projects in Sumatra and Maluku i

Indonesia is set to become the world's second largest geothermal power producer, overtaking the Philippines, with its capacity to generate geothermal electricity expected to increase by 385 megawatts next year. (Reuters Photo/Beawiharta)

By : Dion Bisara | on 2:15 PM September 27, 2016
Category : Business, Economy

Jakarta. Two geothermal working areas in Jambi and North Maluku, worth a total $420 million, will be offered by the government towards reaching renewable energy goals, a ministry representative said.

The government has established 33 projects for investors after passing the geothermal law in 2014 which allows exploitation of forested areas to tap 29,000 megawatts of geothermal energy potential.

The latest two projects are the 110-megawatt Graho Nyabu power plant in Jambi, which covers an area of 109,000 hectares and has an estimated reserve of 200 megawatts, and the 20-megawatt Gunung Hamiding power plant in North Maluku on 42,100 hectares, with an estimated reserve of 265 megawatts.

Yunus Saefulhak, director of geothermal services at the Ministry of Energy and Mineral Resources, said investors can submit their offers by Oct. 20.

Benchmark prices offered for Graho Nyabu geothermal block is capped at 15 cents per kilowatt-hour and 22.6 cents per kilowatt-hour for Gunung Hamibing, Yunus said.

Two more geothermal projects will be up on offer later this month — the 10-megawatt Gunung Galunggung in West Java and the 20-megawatt Gunung Wilis in East Java, and two more are being prepared for auction — the 20-megawatt Marana in South Sulawesi and the 65-megawatt Gunung Talang-Bukit Kili in West Sumatra.

According to the ministry, 25 more projects with a total capacity of approximately 1,500 megawatts will be auctioned by 2018.

Since the law passed two years ago, the government has only auctioned the 165-megawatt Gunung Lawu on the border of East and Central Java, and the 55-megawatt Way Ratai in Lampung. The first project was won by state-owned energy company Pertamina, while the second by Enel Green Power, an Italian multinational renewable-energy corporation, and a local firm Optima Nusantara Energi.

By 2025, Indonesia wants to reach the capacity of 7,000 megawatts from geothermal power plants. Currently, the capacity is only 1,404 megawatts.

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