PLN Encourages Geothermal Investment In The Country To Increase

Photo: Doc. PLN

JAKARTA - PT PLN (Persero) opens cooperation in geothermal development with the level of return of investment Internal Rate of Return (IRR) that is attractive to investors. President Director of PT PLN (Persero) Darmawan Prasodjo said, PLN offers a sharing investment scheme in geothermal development through the Geothermal Exploration and Energy Development Agreement (GEEDA) scheme. PLN offers the GEEDA scheme to investors, which is expected to be able to encourage geothermal investment in Indonesia. "The potential for geothermal investment in Indonesia is very large and is a potential business that can be developed. This joint step is also a joint effort to achieve the Net Zero Emission (NZE) target by increasing clean energy," Darmawan told the media, quoted Tuesday, April 18. Dammawan explained that PLN had conducted a study of the nine working areas. Offered. Through the GEEDA scheme, said Darmawan, geothermal development was carried out through collaboration between PLN as off-taker and investors. This new scheme is a breakthrough from PLN. If in the past, the development of WKP PLN was only off-taker, now PLN opens up opportunities for cooperation with various parties from the upstream side. Starting from exploration to becoming electricity production. "Through this scheme, PLN prioritizes fairness of partnership so that this collaboration covers from upstream to downstream. The hope is, "With this cooperation scheme, it is able to make investors do not hesitate to invest in the geothermal sector," said Darmawan. Dammawan also explained that through this GEEDA scheme it is also able to increase the Internal Rate of Return (IRR) which is attractive to investors. In addition, PLN as a BUMN offers a cooperation scheme with cost recovery from the cost of exploration of geothermal work areas. On different occasions, Project Manager Financing from McDermott Will & Emery Clarinda Tjia-Dharmadi ensures that the GEEDA investment scheme offered by PLN is able to increase investment interest. Through this GEEDA scheme, PLN summarizes the end-to-end cooperation process from upstream to downstream by sharing development risks. "This scheme is a good investment cooperation in the midst of uncertain economic conditions. By sharing risks and sharing investments in geothermal projects in Indonesia, this is able to increase investment certainty as well as more attractive investment returns. "Investors," said Clarinda. Of the 9 WKP offered by PLN, there are 4 WKPs that have qualified data progress and study completeness. These four PLN mainstay WKPs already have supporting infrastructure to carry out deeper exploration. The four WKPs are WKP Songa Wayaua 10 Megawatt (MW), WKP Tangkuban Boat 20 MW, WKP Atadei 10 MW, WKP Tulehu 20 MW. First, WKP Songa Wayaua is located on Bacan Island, South Halmahera Regency, North Maluku Province. Second, WKP Atadei located in Lembata Regency, NTT Province. Third, WKP Tangkuban Boat located in Subang Regency, Purwakarta Regency and Bandung Regency, West Java Province. This field has an energy potential of 20 MW. Fourth, WKP Tulehu with a capacity of 20 MW located on Ambon Island, Central Maluku Regency, Maluku Province. PLN hopes that with this cooperation opportunity it can become a catalyst in accelerating the achievement of the NZE target in 2060. PLN prioritizes collaboration and fairness principle in this pattern of business cooperation.