Pertamina wins bid for geothermal power plant

Indonesian state-owned Pertamina won the rights to build geothermal power plants in Gunung Lawu, East Java. Pertamina won the bid against rival, PT Star Energy Geothermal Indonesia.

The Gunung Lawu geothermal power plant will be developed by Pertamina’s geothermal subsidiary, PT Pertamina Geothermal Energy (PGE), said PGE president director Irfan Zainuddin.

“PGE plans to follow up with an exploration survey, evaluation of moves to determine drilling coordinates and preparations for exploration drilling, including obtaining permits, which will take some time,” Irfan said to Jakarta Post. “Results of explorations will determine the next steps.”

Gunung Lawu geothermal is estimated to support up to 165 megawatt (MW) in capacity, stretches through two provinces and several regencies — Karanganyar, Sragen and Wonogiri in Central Java, as well as Ngawi and Magetan in East Java.

“It is also expensive as geothermal power plant development in Indonesia usually needs US$4 million per megawatt in investment,” Yunus Saifulhak, the geothermal director at the ministry, previously said to the Jakarta Post.

Under its long-term electricity procurement target, the government aims to see at least 25 percent of total power generation by 2025 supported by renewable energy, including the utilization of geothermal power plants.