T

hree companies have passed the first stage of the selection process for the Gunung Lawu geothermal working areas amid concerns about the feasibility of such projects.

According to an announcement made by the Energy and Mineral Resources Ministry'€™s directorate general for new and renewable energy and energy conservation, the companies that have passed the first stage are PT Ormat Geothermal Indonesia, Pertamina and PT Star Energy Geothermal Indonesia.

There are two firms that failed to pass the first stage of evaluation. The failure was due to incomplete submission of the required documents, according to the directorate general.

Gunung Lawu is part of a number of working areas the ministry is offering in the open bids. Five working areas were offered in the bids that started in July, with a total estimated potential of 730 megawatts. Apart from Gunung Lawu, East Java, other working areas on offer are Kepahiang in Bengkulu, Marana in Central Sulawesi and Danau Ranau on the border of Lampung and South Sumatra.

Earlier, the new-renewable energy and energy conservation office said that it had re-launched the tender for the Danau Ranau working areas because only one firm had submitted a bid.

Indonesia is estimated to have abundant geothermal resources, however, the development of this potential is often hampered by financial and environmental issues.