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West Sumatra’s first geothermal plant kicks off at 85 MW
Indonesia's Supreme Energy has begun operating the first geothermal in West Sumatra toward fulfilling the government's new and renewable energy policy.
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Indonesian multinational Supreme Energy has commenced operations at it Muara Laboh geothermal power plant in South Solok, West Sumatra, the first geothermal plant in the province. (ENGIE/ENGIE)
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akarta-based renewables company Supreme Energy has commenced operation of its 85-megawatt (MW) Muara Laboh geothermal power plant in South Solok regency, West Sumatra, the first electricity generator of its kind in the province, according to official data.
Supreme Energy said in a statement on Dec. 16 that the US$580 million power plant could power up to 340,000 homes in the area. Construction on the geothermal power plant kicked off in 2012, when the company started exploring geothermal wells in the region.
The company signed a 30-year purchase agreement with state-owned power company PLN in 2008.
“The commercial operation of Muara Laboh [...] represents the strong commitment of Supreme Energy and its international partners toward the development of geothermal energy in Indonesia,” said Supreme Energy CEO Supramu Santosa.
Going forward, Supreme Energy and its foreign partners, French electricity company ENGIE and Japanese diversified conglomerate Sumitomo Corporation, are to commence the second phase of operations, during which the plant’s production capacity will be increased to 175 MW.
“ENGIE’s championing of the Muara Laboh geothermal project is in line with our group’s ambition to accelerate the world’s zero-carbon transition and install 9 GW of renewable energy capacity globally by 2021,” said ENGIE Asia-Pacific president Paul Maguire.
According to the Energy and Mineral Resources Ministry, the 2018 total installed production capacity for West Sumatra was 791.32 MW, primarily from coal-fired power plants (54.7 percent) and hydropower plants (32 percent). The province did not have a working geothermal plant last year.
Renewable energy is high on the government's agenda. However, an assessment by the Agency for the Assessment and Application of Technology (BPPT) has concluded that Indonesia would reach a new and renewable energy mix of just 13 percent by 2025, much lower than the targeted 23 percent.
