TOPIC 'Geothermal Energy' on Dec 12, 2008 (CET)
Indonesia Auctioning Off Geothermal Sites
There is a power crisis in Java and Bali. Their combined power grid is operating at 250 MW below demand. To help facilitate the production of more power, the government of Indonesia is set to auction geothermal resources in Ijen, Banyuwangi and Ngebel, Ponorogo. The capacity of both sites is said to be over 400 MW.
The government is preparing to open a tender for the bidding of the two geothermal projects. Tutut Herawati, chief of the provincial energy and mineral resources agency, said a joint effort and combined team from the central government will be responsible for selecting the winners. The offer will be made of three million (USD) per kilowatt hour and each project will recognize three winners. The first winner is to pay $10 million first, to assure the pledge, and must be able to begin operations within six months. If all conditions are not met, the contract will go to the second winner.
The geothermal activity area in Ijen is positioned on the border between Banyuwangi and Bondowoso. It was recently designated as a mining site and is believed to be capable of producing 185 MW. The geothermal resource in the Ngebel region sits on the border between Ponorogo and Madiun. It is believed capable of producing 120 MW.
Foreign and local investors must run their power supply through PT PLN’s electricity grid in Java-Bali. PT PLN is the state-owned electric company.
If the auction goes well, Tutut stated that there are nine additional geothermal sites, for a total power capacity of 580 MW, that will be made available at auction in the future. These sites are in Madiun, Probolinggo, Mojokerto, Malang, Pacitan, and Sumenep. The government is planning exploration of more possible geothermal sites in Seulaweh and Jaboi (Aceh), Ungaran (Central Java), Jailolo (North Maluku), Cisolok (West Java), Tangkuban Perahu, Mt. Tapomas, and Sokoria (East Nusa Tenggara).
Sherry Irvin
on behalf of the
BascoTec Internet Limited
Technologie Park 13
33100 Paderborn
Germany
TAGS: power crisis, power grid, power production, geothermal resources, geothermal projects, central government, mineral resources, geothermal sites,
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