Pertamina Geothermal Energy (PGE) and PLN Indonesia Power (PLN IP) have signed a Joint Development Agreement (JDA) in order to increase the geothermal power generation capacity of a number of Geothermal Power Plants (PLTP) in Indonesia.
Julfi Hadi, President Director of PT Pertamina Geothermal Energy Tbk said that this JDA is a strategic step to increase synergy between two large domestic energy companies.
Currently, Indonesia has very abundant geothermal resource potential. On the other hand, Pertamina Geothermal Energy is also pursuing a capacity target of 1GW. Increasing the utilization of this potential can accelerate the national energy transition in accordance with the country’s commitment to achieving Net Zero Emissions.
Julfi believes this collaboration will accelerate the development of more efficient and sustainable geothermal projects as PGE’s strategic effort to reach 1 GW in the next two years.
This JDA collaboration is a follow-up to the signing of the Joint Development Study Agreement (JDSA) between the two on February 22, 2024.
The main focus of this collaboration is the development of co-generation projects in two geothermal working areas using brine or hot water from steam separation. This technology can increase electricity production capacity.
Through the use of advanced technology and innovative approaches, the two companies hope to increase the added value of geothermal resources and accelerate the commercialization of projects being developed.
Julfi said that this Co-Generation technology project could potentially increase PGE’s installed capacity by up to 230MW so that it could have a significant impact in increasing geothermal energy efficiency.
Julfi hopes that through this partnership the application of technology can become the main driver of accelerating the energy transition in Indonesia.
This JDA also has the potential for companies not only to focus on increasing electricity capacity, but also to accelerate the development of geothermal energy as part of the grand national energy transition strategy.
“By applying the principle of operational excellence, we ensure that every stage from development to project operations is carried out efficiently and with the highest quality, so as to increase the use of renewable energy,” he said.
The next step, PGE and PLN IP are committed to completing the Power Purchase Agreement (PPA) quickly and efficiently, to ensure that projects can be immediately built and operated to provide optimal benefits.
