PGE And PLN IP Sign Agreement To Develop Potential Geothermal

JAKARTA - PT Pertamina Geothermal Energy Tbk (PGEO) and PT PLN Indonesia Power (PLN IP) have officially signed a Joint Development Agreement (JDA) in Jakarta. This JDA aims to optimize the capacity of a number of Geothermal Power Plants (PLTP) in Indonesia.

President Director of PT Pertamina Geothermal Energy Tbk, Julfi Hadi, said that JDA is a strategic step that will increase the synergy between two large domestic energy companies and as one of PGE's efforts to achieve the 1 GW installed capacity target.

"We believe this collaboration will accelerate the development of geothermal projects that are more efficient and sustainable, as one of PGE's strategic efforts to reach 1 GW in the next two years," said Julfi, Saturday, June 1.

Just so you know, this JDA is a follow-up to the signing of the Joint Development Study Agreement (JDSA) by the two companies on February 22, 2024.

One of JDA's main focuses is the development of co-generation projects in two geothermal working areas by utilizing brine or hot water resulting from vapor separation to increase the production capacity of electricity. The initial development target of the Co-Generation PLTP (Binary Plant) which is ready to be developed is PLTP Area Ulubelu Binary Unit and PLTP Area Lahendong Binary Unit, each of which has the potential to increase installed capacity by 30 MW and 15 MW.

Through the use of advanced technology and innovative approaches, the two companies hope to increase the added value of geothermal resources and accelerate the commercialization of these projects.

Julfi Hadi said that Co-Generation has the potential to increase the installed capacity of PGE to 230 MW so that it can have a significant impact in increasing the efficiency of geothermal energy.

Julfi hopes that the partnership in the application of this technology will be the main driver in accelerating the energy transition in Indonesia. According to him, this JDA allows his party to no longer only focus on increasing electricity capacity, but also on accelerating the development of geothermal energy as part of a major national energy transition strategy.

"By applying operational excellence principles, we ensure that every stage from development to project operations is carried out efficiently and with the highest quality, so as to increase the use of renewable energy," said Julfi.

The next step, PGE and PLN IP are committed to quickly and efficiently completing the Power Purchase Agreement (PPA) to ensure that these projects can be built and operational immediately so as to provide optimal benefits.

The partnership between PGE and PLN IP is also expected to be a model for similar collaborations in the future, which will accelerate energy transition and support national targets to increase the use of renewable energy.

"We hope that this JDA can be an example for other renewable energy projects in Indonesia. With strong synergy and collaboration, we can achieve a common goal of creating a more sustainable energy future," said Julfi.