Two new geothermal power plants to operate in 2009

Olivia Hutabarat and Alfian, The Jakarta Post, Jakarta 

Two geothermal power plants with a total capacity of 122 megawatts (MW) could be in operation by next year to help ease the country's power supply shortage. 

Sugiharto Harsoprayitno, the Energy and Mineral Resources Ministry's director of geothermal utilization, named the two plants as the Wayang Windu plant's unit 2 in West Java, with a capacity of 120 MW, and the Sibayak plant in North Sumatra, with a capacity of 2x6 MW. 

"Important equipment, such as turbines, have arrived at the sites, so we are optimistic the plants can begin operating next year," he said. 

The government has set a target for the Kamojang plant in West Java to start operating by 2009, but the project is caught up in a wrangle over a permit to operate in a protected forest. 

Indonesia has the world's largest geothermal reserves, with an estimated capacity of up to 27,000 MW of electricity -- equal to around 40 percent of the world's geothermal reserves. 

However, Indonesia's 18 operational geothermal plants only produce a combined 1,050 MW. 

These 18 power plants include: Salak in West Java (375 MW), Darajat in West Java (255 MW), Kamojang in West Java (200MW), Wayang Windu in West Java (110 MW), Dieng in Central Java (60 MW), Lahendong in North Sulawesi(40 MW), and Sibayak in North Sumatra (12 MW). 

The government has said geothermal power will contribute 30 percent to its second 10,000 MW power plant construction program. However, investors have demanded a revision of the government's policy on pricing. 

Meanwhile, PT Pertamina Geothermal Energy, a subsidiary of state oil and gas company PT Pertamina, is also planning to have the Lahendong geothermal power plant up and running by the end of 2008. 

The plant will have a total capacity of 60 MW, geothermal energy director Abadi Poernomo said. 

Sugiharto said the government would soon open bidding for geothermal utilization at 11 sites. 

However, he said he doubted the government target to utilize 3,000 MW power from geothermal plants by the end of 2011 would be reached, because of the long delay in pricing negotiations with state power company PT PLN. 

Investors developing geothermal sites in Indonesia must sell the electricity to PLN. 

They have demanded PLN revise the price of geothermal-produced energy in Sumatra, saying the current price is not feasible. However, PLN has thus far refused to revise the price.