PT Supreme Energy Muara Laboh (SEML), a joint company between PT Supreme Energy Sumatera, Sumitomo Corporation and Inpex Geothermal Ltd, signed an amandement of power purchase agreement (PPA) with State power utility PT PLN on December 23, 2024 to develop units 2 and 3 (140 MW) of Muara Laboh geothermal located in South Solok regency, West Sumatra province.
This PPA amendment follows the issuance of approval for electricity price adjustments from the Minister of Energy and Mineral Resources and an approval letter from the Minister of Finance indicating that the Muara Laboh Units 2 and 3 PPA Amendments are eligible to be signed by PT PLN and SEML.
The Muara Laboh Geothermal Power Plant (PLTP) project will increase electricity reliability in Sumatra, with a Commercial Operation Date (COD) target for Unit 2 (80 MW) in early 2027 and Unit 3 (60 MW) in 2033. The electricity generated will be distributed by PT PLN through the Sumatra grid to increase the energy mix from renewable energy and strengthen electricity supply in the region, providing electricity to around 760,000 households.
The additional capacity of the Muara Laboh PLTP project will reduce emissions by approximately 900,000 tons of CO2 per year. The project also has the potential to make significant contributions through royalty payments and production bonuses to the local government. The construction of Units 2 and 3 will create employment opportunities for around 1,500 people and encourage local economic growth in the surrounding area.
Muara Laboh PLTP began operating for Unit 1 (approximately 85 MW) on December 16, 2019 and is currently showing excellent performance in supplying electricity to PLN.
“The development of Units 2 and 3 of Muara Laboh PLTP, which requires an investment of US$900 million, is proof of strong commitment of Supreme Energy and its international partners to the development of geothermal energy in Indonesia,” Founder & Chairman of PT Supreme Energy, Supramu Santosa, said as quoted in a statement on Friday, December 27, 2024.
“This is in line with the Indonesian government’s renewable energy mix target as well as the net zero emission target by 2060. We appreciate the strong and continuous support from the government, PLN and the people of South Solok,” he added.
Other projects
In addition to Muara Laboh PLTP, PT Supreme Energy also developed the Rantau Dedap PLTP in South Sumatra with a capacity of 91.2 MW, which has reached COD on December 26, 2021. Rantau Dedap PLTP is developed and operated by PT Supreme Energy Rantau Dedap (SERD), which is a joint venture between PT Supreme Energy Sriwijaya, Marubeni Corporation, Tohoku Electric, INPEX Geothermal Ltd. and PT Energia Prima Persada (PAMA/UT).
Through PT Supreme Energy Rajabasa (SERB), which is a joint venture between PT Supreme Energy Lampung, Sumitomo Corporation and INPEX Geothermal Ltd, SEML is also preparing an exploration program for the Mount Rajabasa Geothermal Working Area located in South Lampung regency, Lampung. Exploration activities will commence as soon as the extension of the PJBTL with PT PLN (Persero) is finalized.
