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Supreme Energy still renegotiating electricity tariff with PLN for Muara Laboh geothermal plant

JAKARTA (rambuenergy.com) – PT Supreme Energy is currently renegotiating with state electricity PT PLN over electricity tariff purchase for Muara Laboh geothermal power plant. PLN will be the off-taker for the electricity produced by the geothermal power plant, which is located in Solok Selatan District, West Sumatera.

CEO of Supreme Energy Supramu Sentosa said the development of the geothermal project has begun since 2008, starting with a survey. So far, the company has drilled 8 wells, with geothermal energy potential of 80 MW.

The total investment to develop the project is estimated to reach US$130 million. PT Supreme Energy Muara Laboh, which will carry out the project, opted to renegotiate the electricity tariff as the power capacity of the planned geothermal power plant would reach only 80 MW, below initial projection of 220MW.

At the weekend, the Energy and Mineral Resources Ministry Sudirman Said visited Muara Laboh geothermal project site to assess the progress of the project.

The minister called on PLN to speed up the renegotiation, so that the developer of the Muara Laboh geothermal energy project can move ahead with constructing production facilities to take the project into commercial operation phase.

Indonesia has the largest geothermal potentials in the world, which is estimated at 40 percent of the world’s geothermal energy potentials. Indonesia has the potential to develop 27,000 MW of geothermal power plants, however, so far only less than 5 percent of geothermal energy has been utilized, led by Chevron of US, as the largest geothermal producer in the country.

PLTP Rantau Dedap

In addition to developing Muara Laboh geothermal project, Supreme Energy is also developing PLTP Rantau Dedap through its unit PT Supreme Energy Rantau Dedap (PT SERD).

PLTP Rantau Dedap is projected to generate a 2×100 megawatt (MW) power plant, called PLTP Rantau Dedap. The electricity from the geothermal power plant will be supplied to state utility firm PT PLN.

PT SERD is jointly owned by PT Supreme Energy (Indonesia), GDF Suez Energy International (French) and Marubeni (Japan). In addition to Rantau Dedap,

PLTP Rantau Dedap is part of the second phase of the government’s 10,000 MW power crash program. Supreme Energy is found by businessman Supramu Santosa.

PLTP Rantau Dedap plans to invest around US$700-800 million to develop PLTP Rantau Dedap. “We hope the development of the project will stimulate the development of geothermal energy in Indonesia, which is still relatively untapped,” he said.

 

On Nov. 12, 2012 PT SERD signed a Power Purchase Agreement (PPA) with the PT PLN. The signing was done by President & CEO of SERD, Supramu Santosa and President Director of PT PLN, Nur Pamudji, witnessed by Minister of Energy and Mineral Resources, Jero Wacik.

Signing of PPA marks a key milestone as it defines the contractual rights and obligations of the parties during the exploration phase, construction phase and operation phase – conditions which are necessary to start exploration drilling activities. (*)

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