Thru this JDSA, the two firms have set a number of feasibility study targets, including co-generation projects and a new scheme to increase the commerciality of geothermal projects by utilizing hot water resulting from steam separation. President Director of Pertamina Geothermal Energy, Julfi Hadi, said that there is a potential additional 230 MW of capacity that can be developed by implementing co-generation. Priority locations for bottoming units have been identified in Ulubelu (30 MW) and Lahendong (30 MW).
“The next target is an attractive Internal Rate of Return (IRR) project with a quick completion of the Power Purchase Agreement (PPA) according to the price corridor in Presidential Decree 112/2022,” Julfi further added in his statement. According to the PGEO Director, the use of proven and mature technology can result in high efficiency, lower CAPEX, and a faster date of commercialization.
Bernadus Sudarmanta, Director of Business and Commerce Development at PLN IP, described the partnership as the first step in realizing the energy transition and an important achievement towards better geothermal business growth.
The JDSA is particularly special as a partnership between one of Indonesia’s biggest geothermal developers and PLN as the sole off-taker of power generation in the country. This provides an optimal scenario for maximizing the business commerciality of geothermal and aligning strategic efforts to achieve Indonesia’s geothermal growth targets in the coming years.
Just recently, PGEO formed a partnership with Turkish energy company Kipas Holding to cooperate on the exploration of geothermal resources both in Türkiye and Indonesia, with possibility of joint investment in third countries. The signing of this agreement is the latest in a string of projects the PGEO has secured in alignment of their international expansion efforts.
