PT Supreme Energy signs PPA Amendment for Muara Laboh geothermal expansion
PT Supreme Energy Muara Laboh has signed a PPA Amendment for the development of the 140-MW expansion of the Muara Laboh geothermal power plant in Indonesia.
PT Supreme Energy Muara Laboh (SEML) has signed a Power Purchase Agreement (PPA) Amendment with state-owned power distributor PT PLN (Persero) for the developments of Units 2 and 3 of the Muara Laboh Geothermal Power Plant in the Solok Selatan Regency in West Sumatra, Indonesia. The target Commercial Operation Dates (COD) for the two power plants are in early 2027 for the 80-MW Unit 2 and 2033 for the 60-MW Unit 3.
With the issuance of tariff adjustment approval from the Minister of Energy and Mineral Resources and the consent letter from the Minister of Finance, the PPA Amendment for Muara Laboh Units 2 and 3 has met the conditions for signing by PT PLN (Persero) and SEML. The first phase of the Muara Laboh Geothermal Power Plant, with 85 MW of installed capacity, started operations in December 2019.
The additional capacity from Units 2 and 3 will provide electricity to 760,000 households connected to the Sumatra grid. It will also increase the contribution from renewables to Indonesia’s energy mix, thus reducing emissions by about 900,000 tons of CO2 per year. The construction phase of the power plants is also expected to provide jobs to around 1500 people, thus boosting the local and regional economy with employment opportunities and, eventually, royalty and production bonus payments to the local governments.
PT SEML is a joint venture between PT Supreme Energy Sumatera, Sumitomo Corporation, and INPEX Geothermal Ltd.
“The development of Units 2 and 3 of the Muara Laboh Geothermal Power Plant, that requires the investment of USD 900 million, demonstrates the strong commitment of Supreme Energy and its international partners to advancing geothermal energy in Indonesia. This is in line with the Indonesian Government’s energy mix target from renewables as well as the target for net zero emission by 2060. We deeply value the ongoing support from the Government, PLN, and the Solok Selatan community,” said Supramu Santosa, Founder & Chairman of PT Supreme Energy.
In addition to Muara Laboh Geothermal Power Plant, PT Supreme Energy had developed the Rantau Dedap Geothermal Power Plant in South Sumatra with a capacity of 91.2 MW, which achieved COD on December 26, 2021. This project is developed and operated by PT Supreme Energy Rantau Dedap (SERD), a joint venture involving PT Supreme Energy Sriwijaya, Marubeni Corporation, Tohoku Electric, INPEX Geothermal Ltd., and PT Energia Prima Nusantara (PAMA/UT).
Through PT Supreme Energy Rajabasa (SERB), a joint venture between PT Supreme Energy Lampung with Sumitomo Corporation and INPEX Geothermal Ltd., the company is also preparing exploration activities for the Rajabasa Geothermal Working Area in Lampung Selatan Regency, Lampung Province. Exploration will begin upon completion of the PPA extension with PT PLN (Persero).
Source: Email correspondence
