Petromindo|Thomas
State-owned electricity firm PT PLN signed on Wednesday an amendment to its previous power purchase agreement (PPA) with independent power producer PT Supreme Energy Rantau Dedap (SERD) for the latter?s Rantau Dedap geothermal power plant project, which spans Muara Enim and Lahat regencies, South Sumatra Province.
SERD said in a statement that the PPA amendment includes an adjustment to the tariff of electricity from the power plant to be sold to the utility company. The statement did not disclose the new tariff and the previous tariff figures.
SERD CEO Supramu Santoso said that the tariff adjustment shows that the government is quite flexible and accommodative in the development of renewables specifically geothermal energy.
Exploration results of the Rantau Dedap geothermal area confirm the development of an 86 MW geothermal power plant in the first phase. The statement said that negotiation for the PPA amendment has started since 2016, which was finally approved by Minister of Energy and Mineral Resources Ignasius Jonan early November 2017.
SERD said that following agreement on the tariff adjustment, the company will seek to reach financial close of the project, implement exploitation drilling, and start construction process, with the aim that the power plant can start operation in 2020. The electricity will be sold to PLN for a 30-year period.
SERD, which was set up in 2008, is a consortium comprising of PT Supreme Energy, ENGIE, and Marubeni Corporation.
Editing by Reiner Simanjuntak
