Development to Start This Year, PLTP Muara Laboh Phase II is Worth USD400 Million

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA
PRESS RELEASE

NUMBER: 032.Pers/04/SJI/2020
Date: 17 January 2020

Development to Start This Year, PLTP Muara Laboh Phase II is Worth USD400 Million

After successfully launching the commercial operation of Geothermal Power Plant (PLTP) Muara Laboh Phase I with a capacity of 85 MegaWatt (MW) in South Solok, West Sumatra, on 16 December 2019, PT Supreme Energy Muara Laboh (SEML) will increase the power plant capacity by 65 MW through the development of Phase II.

The increase is a part of SEML's support to the government in realizing the 23% target for New, Renewable Energy (NRE) utilization by 2025.

Phase II development is expected to start this year, after all licenses are issued. "PT Supreme Energy is in the middle of negotiations with both Ministry of Energy and Mineral Resources (EMR) and PLN to develop Phase II with a capacity of 65 MW. The investment needed is estimated at USD400 million," said Senior Manager for Site Support, Gov. Relations & Community Development, Yulnofrins Napilus, at Connex Energy Meet Up in Padang, West Sumatra, Thursday (16/1).

Yulnofrins says that before the power plant was operational, blackouts occurred almost every day in South Solok due to PLN's limited transmission networks and frequent interruptions. After PLTP Muara Laboh is operational, fortunately, there is no blackout.

"In South Solok, electricity was often off although the district's electricity need is only 8 MW. Power outage in Solok could occur up to three times a day. PLN's power source is located 100 kilometers away in Solok. This condition is not ideal because transmission networks run through hills prone to landslides or to interruption such as fallen trees. With PLTP Muara Laboh in operation, PLN has now built better infrastructure as well as constructed two substations and 150 kVA cable transmission which are sturdier, higher, and not easily interrupted," said Yulnofrins.

Yulnofrins continues that geothermal utilization in South Solok brings positive impacts on the local communities and the regional government, and that the local communities and the regional government have provided generous support to PT SEML. As an expression of gratitude, PT SEML gives CSR assistance, for example through the development of public facilities and infrastructure around the power plant's work area.

"PT Supreme Energy is highly grateful for the support of the regional government and the local communities. As our expression of gratitude, we've supported the development of a sports hall and a number of public infrastructures such as schools, mosques, and social facilities needing assistance since before the geothermal exploration was carried out," he said.

The presence of PLTP Muara Laboh also generates huge revenue, as much as Rp15 billion per year, to the regency government.

"I hope the government will continue to support us in developing Phase II because it's a waste if we don't use the potential to the max. Sooner or later, electricity growth will demand reliable supply," Yulnofrins concluded. (IY)

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