PLN Indonesia to set benchmark for Tanzania geothermal development

Gunung Salak, Indonesia (source: flickr/ Adhard, creative commons)

Indonesia’s state-owned electricity company PT PLN (Persero) has re-established an MOU with Tanzania Electric Supply Co Ltd (Tanesco) with the aim of supporting geothermal development in Tanzania. Part of the agreement is to designate the Gunung Salak geothermal power plant in West Java as a benchmark for Tanesco’s own plans for geothermal power development.

Tanesco is Tanzania’s state-owned public utility that is responsible for the generation, transmission, and sale of electricity in the country. Geothermal development in Tanzania has so far been facilitated by the Tanzania Geothermal Development Company (TGDC), a subsidiary of Tanesco.

According to Edwin Nugraha, Direct of PT PLN, Tanesco will study the business transformation process of PLN so that it can develop a more reliable and sustainable electricity system in Tanzania. The Gunung Salak facility was selected as benchmark, not only for its reliable power supply to West Java, but also because it runs a carbon trading unit using voluntary carbon units (VCUs).

Moreover, the MOU between PLN and Tanaesco covers four scopes of cooperation:

• Digitization of services including generation and distribution
• Development of core business utilities including maintenance, repair, and operation
• Development of non-core business utilities such as power quality solutions
• Capacity building training through internships of Tanesco employees with PLN’s digital transformation and electricity core business sector.

Boniface Gissima Nyamo-Hanga, Managing Director of Tanesco, expressed his admiration for the operating systems implemented by PLN during a visit. The virtual power plant was particularly notable, as it can be used as a digital training medium. “I am very happy to have visited here. In the future, we will develop a similar system in Tanzania. We also want to exchange expertise in developing this system.”

PLN is currently involved in the development of several geothermal sites in Indonesia. The state-owned firm recently published a tender for well logging services in the Ulumbu and Mataloko sites, and announced the selection of Star Energy to co-develop the Kepahiang geothermal prospect.

Source: Republika.id and Katadata.co.id