PT Medco Power Indonesia (Medco Power), a subsidiary of PT Medco Energi Internasional (MedcoEnergi), through its business unit PT Medco Cahaya Geothermal (MCG), a jointly owned company of Medco Power and Ormat Technologies (NYSE:ORA), commenced commercial operations at the Ijen Geothermal Power Plant, the first geothermal power facility in East Java.

This project, in parallel with the country’s renewable energy development program,  is meant to support the government’s energy transition agenda and renewable energy target achievement. The Ijen Geothermal Power Plant, with a planned total capacity of 110 MW, began operations with its first phase delivering 35 MW to the Java electricity grid, under a 30-year purchase power agreement (PPA). 

Supported by 83 transmission towers and a 150kV transmission line, the project will enhance grid stability and expects to generate power to approximately 85,000 households in Java-Bali system. 

In 2024, Ijen received awards on occupational safety and health from the Directorate General of Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources (ESDM), and zero accident award from East Java provincial administration. Ijen power plant will be the second geothermal facility of Medco Power, after Sarulla in North Sumatra.

Medco Power is also evaluating other geothermal prospects in Bonjol, West Sumatra and Samosir, North Sumatra.

“The successful development of Ijen Geothermal Phase-1 demonstrates Medco Power’s capacity to harness Indonesia’s geothermal resources using the latest technologies. This milestone reinforces our commitment to expand our renewable energy portfolio and support Indonesia’s plan to accelerate renewable energy development,” Eka Satria, President Director of Medco Power, said as quoted in a statement on Friday, February 7, 2024.

Roberto Lorato, CEO of MedcoEnergi, said the commencement of operations at Ijen Geothermal reinforces MedcoEnergi’s commitment to delivering sustainable energy solutions. 

This project , Lorato added, is also an important part of the company’s effort to achieve Net Zero Emissions for Scope 1 and 2 by 2050, and Scope 3 by 2060, while supporting Indonesia’s energy security and climate goals.