Development of Dieng, Patuha Geothermal Power Plants Continued
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 258.Pers/04/SJI/2020
Date: 19 August 2020
Development of Dieng, Patuha Geothermal Power Plants Continued
Indonesia's geothermal potential according to Indonesian Geological Agency totals 23.9 Giga Watt (GW) until December 2019. However, data from Geothermal Directorate of Ministry of Energy shows that the potential has only been used by 8.9% or 2,130.6 MW. The government has set a target of increasing geothermal utilization to 7,241.5 MW or 16.8% in 2025. Therefore, the government has continued to make every effort to advance geothermal utilization.
The utilization of geothermal power as a source of energy will definitely thrive with the signing of three agreements on the development of PLTP (Geothermal Power Plant) Dieng 2 and PLTP Patuha 2, namely between PT Geo Dipa Energi (Persero) and PT Penjaminan Infrastruktur Indonesia (Persero), between Financing and Risk Management Directorate General of Ministry of Finance and Asian Development Bank (ADB), and between PT Geo Dipa Energi (Persero) and ADB.
"The utilization of renewable energy must be increased not only to realize the target of 23% renewable energy in the energy mix in 2025, but also to move towards low carbon economy. The utilization of geothermal energy which will improve environmental condition is something that we hope for. This is because the operations of geothermal power plant produce virtually no carbon emissions that continuously damage the earth," said President Director of PT Geo Dipa Energi (Persero) Riki Firmandha Ibrahim shortly before the virtual signing on Wednesday (19/8).
Therefore, continued Riki, the development of geothermal power plants supports the government's commitment to reducing carbon emissions set out in the Paris Agreement that was reached at the 25th session of the Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC-COP 25).
Asian Development Bank (ADB) Country Director for Indonesia, Winfried F. Wicklein, added that both geothermal projects will help Indonesia fight climate change and make Indonesia's electricity system sustainable, reliable, and efficient. The development projects will also promote an increase in the business world and encourage consumers to access affordable, reliable, and modern energy.
"Our assistance is in line with Indonesia's long-term target of achieving economic and energy growth, including maximizing the use of local energy resources, increasing the energy mix, and ensuring environmental sustainability," said Winfried.
The signing of the cooperation for the development of PLTP Dieng 2 and PLTP Patuha 2 projects was carried out between PT Geo Dipa Energi (Persero) and PT Penjaminan Infrastruktur Indonesia for guarantee and indemnity agreement, between PT Geo Dipa Energi (Persero) and ADB for loan agreement, and between Directorate General of Financing and Risk Management of Ministry of Finance and ADB for implementation agreement.
With the signing of the cooperation agreements, Indonesia will have an additional capacity of 110 MW (2x55 MW) from geothermal power plants. Construction is expected to start late 2020, while operation (COD) is scheduled for 2023. Both power plants are the government's priority and vital projects, as set out in Decision of Minister of EMR No. 1567 K/21/MEM/2018 and Regulation of Minister of EMR No. 40 of 2014. These power plants are the first geothermal projects with ADB that are financed under a direct lending scheme.
PLTP Dieng 2 and PLTP Patuha 2 offer huge benefits not only on global and national scales but also at regional levels. The Production Bonus paid annually to the regency governments as well as Community Development and Corporate Social Responsibility programs will further improve the economy of the local communities. In fact, these projects will bring direct benefits to all layers of the village society.
The existence of the power plant projects will provide job opportunities to the locals, both men and women. According to a study, the construction of a 200 MW geothermal power plant has the potential for employing about 0.5 person per MW, excluding additional workers such as security guards, daily workers, etc. Meanwhile, as many as 1,000 workers will be employed at the peak of the construction stage. (IY)
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