PT Pertamina Geothermal Energi, a unit of state energy company PT Pertamina, on Friday revealed plans to spend $3 billion by 2014 to generate an additional 1,070 megawatts of geothermal-fired power from 15 domestic concessions.
Abadi Poenomo, PGE’s president director, said the spending would bring geothermal generation to 1,342 MW under the second fast-track power-generation project, including 272 MW now generated from three locations, including Kamojang, West Java, and Lahendong, North Sulawesi.
The World Bank will provide $500 million as partial funding, Abadi said, with the rest expected to come from Pertamina. The Japan International Cooperation Agency, however, has expressed interest in funding some projects, but no decisions have been made.
Some 72 percent of PGE’s revenue comes from the Kamojang geothermal plant.
Revenue from steam generation, which is tied to crude oil prices, has dropped, Abidi said.
Revenue hit Rp 1.4 trillion ($141 million) last year and is projected to fall to Rp 1 trillion in 2009. Although 2008 pretax earnings hit Rp 700 billion, they are expected to fall to Rp 500 billion this year.
Zainal Ilmie Bachrun, general manager of Kamojang PGE, said the Kamojang plant’s capacity would be upgraded from 200 MW to 270 MW. Proven reserves have the potential to produce 300 MW.
“The power generated by Kamojang is equal to 9,000 barrels of oil per day,” Zainal said. “Kamojang has 36 active production wells and eight injection wells.”
Indonesia has the potential to generate more than 27,000 MW from geothermal sources. The country plans to ultimately bring 4,733 MW of geothermal energy online.
Geothermal development has been stagnant for more than a decade due to low prices. Abadi said a reasonable price for geothermal-generated electricity would be above 9 cents per kilowatt hour, although some companies are asking for more than 11 cents.
PGE sells electricity and steam to its sister company, state utility PT Perusahaan Listrik Negara.
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