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Jakarta Post

PLN’s geothermal plants likely to miss deadline

  • Rabby Pramudatama

    The Jakarta Post

Jakarta   /   Thu, July 26 2012   /  08:18 am

State electricity company PT Perusahaan Listrik Negara (PLN) reveals that there are 13 geothermal power plant projects that are likely to miss development deadlines and are still stuck in exploration stages.

PLN renewable energy chief Muhammad Sofyan said that partners responsible on the upstream production side were struggling with a variety of problems that slowed down the exploration process, ranging from a lack of supporting infrastructure to tough licensing procedures and financing.

“I am afraid if we don’t discuss the matter with our partners, all exploration phases will take longer than we expected,” Sofyan said.

According to the 2003 Geothermal Law, contractors are given three years to complete the exploration stages of a project with a possible two-year extension. All of project development deals were signed by PLN and partners in April 2010.