In a drive to leverage Indonesia's vast geothermal poetntial, PT Pertamina Geothermal Energy Tbk and PT PLN Indonesia Power have signed a joint development agreement (JDA) in Jakarta to optimise the capacity of several geothermal power plants (PLTP) in the country.
This JDA comes after the joint development study agreement (JDSA) that the companies signed in February.
Julfi Hadi, President Director of PT Pertamina Geothermal Energy Tbk, said, "The signing of this JDA demonstrates our strong commitment to increasing the utilisation of Indonesia's abundant geothermal resources to support the acceleration of the national energy transition, achieve the government's commitment to the Enhanced National Determined Contribution (NDC), and the Net Zero Emission programme in Indonesia. We believe this cooperation will accelerate the development of more efficient and sustainable geothermal projects as one of PGE's strategic efforts to achieve 1 GW in the next two years."
The JDA primarily aims to develop co-generation projects in two geothermal working areas. The approach will involve utilisation of brine or hot water from steam separation, to stimulate electricity production.
The initial target for the PLTP Co-Generation (Binary Plant) development is in the Ulubelu Binary Unit and Lahendong Binary Unit PLTP areas, potentially adding 30 MW and 15 MW of installed capacity, respectively.
Noting that the initiative can increase PGE's installed capacity by up to 230 MW, Hadi said, "This JDA allows us to focus on increasing electricity capacity and accelerating geothermal energy development as part of the national energy transition strategy. By applying principles of operational excellence, we ensure that every stage from development to project operation is carried out efficiently and with the highest quality, thereby increasing the use of renewable energy."
Next step: Power Purchase Agreement
Following the success of the JDA, the PGE and PLN IP will soon make effective a power purchase agreement (PPA). "We hope this JDA can serve as an example for other renewable energy projects in Indonesia. With strong synergy and collaboration, we can achieve our goal of creating a more sustainable energy future," Hadi said.
Also present at the JDA signing was Norman Ginting, Project and Operations Director of Pertamina New & Renewable Energy (Pertamina NRE), who appreciated and hoped that this collaboration and synergy could continue. "Today, Pertamina through PGE and PLN through PLN IP have successfully signed a JDA as an important milestone for geothermal development. Pertamina NRE highly appreciates this step and hopes that in the future, these two important national energy SOEs can collaborate and synergise to drive more massive decarbonisation," Ginting said.
Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, said, "Geothermal development is an effort to support the Government in achieving the national energy mix target and also Pertamina's effort in developing New Renewable Energy."
