PGE, PLN and Medco start joint study at Ulubelu and Lahendong

Ulubelu Unit 3 & 4, Lampung, Indonesia (source: Sidiq Nurbiyantoko)

As reported by Kata Data in Indonesia today, state-owned Pertamina Geothermal Energy (PGE) and PLN GG, together with privately owned Medco Power Indonesia will start the first phase of a joint study on geothermal resources in two areas.  We previously reported on these plans for cooperation on resource development in Indonesia.

The potential for additional geothermal power generation in the working areas of Ulubelu is 10 MW, and in WKP Lahendong 5 MW. There are efforts made that these geothermal development will be concluded as soon as possible, according to PGE Corporate Secretary Sentot Yulianugroho.

“The target is the end of this year or early next year,” he said to Katadata.co.id. In this joint study , the three companies will conduct studies on their respective Geothermal Working Areas (WKP), which are spread over seven regions, with a potential development of 700 MW.

According to Sentot, this joint study is to increase the installed capacity of geothermal in the working areas of PGE as well as Medco and PLN. Both conventional systems and those using binary technology or low pressure.

In January this year, PLN GG and PGE signed a Memorandum of Understanding (MoU) for the Joint Study of the development of geothermal power plants. Both parties will hold a joint study to study the development and optimization of geothermal energy utilization in PGE’s geothermal working area (WKP). On the other hand, currently PGE is also waiting for the government’s decision on the plan to merge the geothermal assets of state-owned companies. The three companies planned to put under one holding company are PT Pertamina Geothermal Energy, PT Geo Dipa Energi (Persero), and PT PLN Gas & Geothermal.

According to Sentot, all parties involved are currently conducting studies to carry out the mandate of the Ministry of SOEs. The studies carried out cover all aspects, both legal and commercial. “If the consolidation is as soon as possible in accordance with the government’s mandate. Furthermore, it is hoped that geothermal energy can be developed towards the government’s energy mix target ,” he said.

Source: KataData