Indonesian geothermal power plant worth USD 700m begins operation

The Phase-1 Rantau Dedap geothermal power plant in Indonesia. Source: Marubeni Corporation.

January 10 (Renewables Now) - A geothermal power plant in Indonesia that absorbed an investment of more than USD 700 million (EUR 618m) has achieved its commercial operation date on December 26, 2021, it was announced on Friday.

The Phase-1 Rantau Dedap Geothermal Power Generation project, with a capacity of 91.2 MW, was developed by PT Supreme Energy Rantau Dedap (SERD), a joint venture between PT Supreme Energy, Engie SA (EPA:ENGI), Marubeni Corporation (TYO:8002) and Tohoku Electric Power Co Inc (TYO:9506).

The plant is located in Muara Enim Regency, Lahat Regency and Pagar Alam City, South Sumatra Province. Its development process lasted more than 10 years, from the start of a preliminary study in 2008, the signing of a power purchase agreement (PPA) in 2012 and its amendment in late 2017, to reaching a financial close in 2018.

"Rantau Dedap project is the most challenging geothermal project due to its remoteness with steep terrain, high elevation (2,600 masl) and constructed in the midst of Covid-19 pandemic,” said Supramu Santosa, founder and chairman of PT Supreme Energy.

The plant now dispatches its output to the PT PLN (Persero) Sumatra grid transmission system to support the reliable supply of electricity in the Sumatra area. The PPA has a term of 30 years.

(USD 1.0 = EUR 0.883)

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