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Government earmarks Rp 700b for geothermal power in W. Java, C. Java
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Renewable energy: A geothermal power plant in Dieng, Central Java. Geothermal power has become an increasingly significant source of renewable energy. (Tempo/-)
T
he government is set to inject Rp 700 billion (US$49.83 million) into state-owned geothermal company Geo Dipa Energi next year to increase the company’s production capacity and support renewable energy projects.
Geo Dipa said in a statement that the state capital injection (PMN) from the Finance Ministry would be used to develop a 55 megawatt (MW) geothermal power plant in Patuha, West Java province, and another 55 MW plant in Dieng, Central Java. The plants are expected to be operational by 2023.
Geo Dipa president director Riki Firmandha Ibrahim told reporters in Jakarta on Wednesday that the company was focusing this year on procuring equipment and inking contracts.
“Next year, we will begin drilling and constructing the plants jointly financed by the multilateral lender ADB,” he added.
The Asian Development Bank (ADB) loans would finance up to 70 percent of the two plants, whose combined price tag is $370 million, while Geo Dipa finances the remaining 30 percent, according to the statement.
The two plants currently have an installed capacity of 110MW but Geo Dipa expects them to reach 270MW by 2023.
Indonesia, which had an installed geothermal capacity of 1,948MW last year, aims to almost quadruple its capacity to 7,200MW by 2025, as stipulated in the Road Map for Geothermal Development 2019-2030.
