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Economy in brief: Firms amend PPA for geothermal project
State-owned electricity firm PLN and PT Supreme Energy Rantau Dedap (SERD) have signed an amendment to the power purchase agreement (PPA) for the Rantau Dedap geothermal plant to be built in Muara Enim, South Sumatra
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span>State-owned electricity firm PLN and PT Supreme Energy Rantau Dedap (SERD) have signed an amendment to the power purchase agreement (PPA) for the Rantau Dedap geothermal plant to be built in Muara Enim, South Sumatra.
“The signing shows that the government is quite flexible and accommodative toward new and renewable energy sources. The agreement on the Rantau Dedap electricity tariffs is also based on the government’s good intentions to develop geothermal energy,” SERD president and CEO Supramu Santoso said in a press release on Tuesday.
The PPA was amended following the drilling of six exploration wells in 2015 and the completion of a feasibility study in 2016. As a result, it was confirmed that the Rantau Dedap geothermal site had enough energy resources to build a power plant with a capacity of 86 megawatts in the first phase.
Following the tariff adjustment, SERD will move toward financial closure and construction of the power plant in the hope of launching commercial operations in 2020. The electricity produced by the geothermal power plant will contribute to the Sumatra network under a 30-year PPA.
“The Rantau Dedap geothermal project reflects Supreme Energy’s effort and commitment to develop geothermal energy in Indonesia. Moreover, this project is an important part of the government’s program to boost the new and renewable energy portion in our energy mix in order to achieve sustainable energy security,” Supramu said.
