JAKARTA (RambuEnergy.com)- PT Supreme Energy Rantau Dedap, a subsidiary of PT Supreme Energy, said it will start drilling geothermal wells in Rantau Dedap in the middle of this year.
Supramu Santoso, Chief Executive Officer of Supreme Energy, was quoted by Bisnis Indonesia daily as saying that the company expects to secure financing in March this year, that will allow the company to start the drilling activities.
Supreme Energy is currently seeking loans from Japan Bank for International Cooperation (JBIC) and Asia Development Bank (ADB) to fund the Rantau Dedap geothermal power plant (PLTP Rantau Dedap), which is located in Muara Enim, South Sumatera.
In the first phase, the company plans to develop geothermal power plant with an installed capacity of 86 MW, supported by 12-16 geothermal wells. The drilling is scheduled to last for one year.
The company has signed power purchase agreement (PPA) with state electricity company PLN in November 2017. Based on the deal, PLN will buy electricity from the power plant at a tariff of 11.76 cent USD per kWh. (*)