Ijen geothermal power plant in Indonesia targets 2024 COD

Drilling start at Ijen project, East Java, Indonesia (source: Medco Power)

The 34-MW Phase 1 development of the Ijen geothermal power plant in East Java, Indonesia being developed by PT Medco Cahaya Geothermal (PT MCG) is targeting commercial operations by the end of 2024. Construction work for the project is ongoing, part of which is a 150 kV transmission line from the power plant to the PLN substation over a distance of about 28 kilometers.

“Construction is according to plan. We are trying to start operating the Blawan Ijen Geothermal Power Plant by the end of December,” said Senior Manager External Relations of PT Medco Cahaya Geothermal Ibnu Nurzaman

The Ijen geothermal project has had a long history, having secured a PPA with PT PLN back in 2013. Philippine-based Aboitiz Power withdrew from a potential joint venture with developer Medco Power in 2017, before Ormat Technologies eventually acquired a 49% stake in the project to formally found PT MCG. In 2022, the joint venture was given approval by the Ministry of Energy and Mineral Resources to drill a series of production and injection wells at the site.

PT MCG has been successful in raising funding for the project through the recent years. In 2023, PT MCG signed a Financing Agreement with PT Sarana Multi Infrastruktur (Persero) (SMI), a Special Mission Vehicle under the Indonesian Ministry of Finance. The project once again received a $126 million loan from the U.S. International Development Finance Corporation (DFC) in early 2024.

In early 2023, PT MCG also signed an EPCC contract with PT Inti Karya Persada Tehnik (IKPT) and consortium partner PT Multi Fabrindo Gemilang for the Ijen Unit 1 geothermal power plant.

A total of 83 tower units will be needed for the power transmission system connecting the Ijen power plant to the PLN substation, of which 78 had already been erected. According to Aditya Negara, Head of Geothermal at PT MCG, 37 of the towers are located on private land while the rest are in forest areas. For towers built in private land, the developer had to provide compensation to the owners.

The Ijen geothermal power plant is part of the 10-year Electricity Supply Business Plan (RUPTL) of PT PLN. Electricity generated from the power plant will be supplied to both the islands of Java and Bali.

Source: Detik Jatim and IKPT