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Supreme Energy, PLN in talks to expand geothermal power plant in W. Sumatra
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The Muara Laboh geothermal power plant is located in South Solok, West Sumatra. (ENGIE/ENGIE)
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enewable energy company Supreme Energy plans to expand the generation capacity of its geothermal power plant in Muara Laboh, West Sumatra, which recently entered commercial operations.
The company is in talks with state-owned electricity company PLN and the Energy and Mineral Resources Ministry on the development of the second stage of the power plant, which would up the generation capacity by 65 megawatts, Supreme Energy vice president of relations Prijandaru Effendi said.
“The expansion would require $400 million in investments and would start once PPA negotiations are settled,” he said following the inauguration of the first stage of the power plant on Dec. 16.
The electricity from the first unit of the geothermal plant, which has a capacity to produce 85 MW, will be fed into PLN’s power distribution network in Sumatra. The new power plant is expected to supply electricity for 340,000 households.
PLN signed a 30-year power purchase agreement (PPA) for the current 85 MW supply of power. Prevailing regulations cap the price at 6.32 US cents per kilowatt hour (kWh).
Once Muara Laboh operates at 150 MW, West Sumatra will become the country’s fourth-largest geothermal power producer, exceeding North Sulawesi, which hosts the 120-MW Lahendong plant.
With 1,035 MW of geothermal reserves, West Sumatra holds Indonesia’s fourth-largest geothermal potential after West Java, North Sumatra and Lampung, according to the General National Energy Planning (RUEN) roadmap.
