PGE Executes Lumut Balai Unit 4 Geothermal Power Plant Project in South Sumatra with 55 MW Capacity
PT Pertamina Geothermal Energy Tbk (PGE) has begun the execution phase of the Lumut Balai Unit 4 Geothermal Power Plant (PLTP) in South Sumatra, with a capacity of 55 megawatts (MW).
The project is located in the Lumut Balai and Margabayur Geothermal Working Areas (WKP) in South Sumatra.
“The execution of this project solidifies the Company’s long-term development plans to support the acceleration of the national clean energy transition,” said PGE President Director Ahmad Yani in an official statement in Jakarta on Monday.
The project development sequence begins with infrastructure construction, exploration well drilling, production testing, and issuance of the Notice of Resource Confirmation (NORC), with a target completion in October 2027.
As an initial phase, PGE will conduct drilling of three exploration wells, with an estimated investment of US$32.21 million.
“Through the development of the Lumut Balai Unit 4 PLTP project, PGE not only focuses on adding installed capacity potential but also reflects the Company’s commitment to ensuring the sustainability of clean energy supply while enhancing the reliability of the national geothermal portfolio,” said Ahmad.
“Moreover, this project is an important part of supporting the achievement of national energy mix targets and strengthening Indonesia’s contribution to realising Net Zero Emissions,” he added.
From a technical perspective, the Lumut Balai WKP has a vast geothermal resource area, ranging from 22 to 66 km². Recent geoscience studies and reservoir simulations indicate that existing reserves can support the additional 55 MW capacity development for Unit 4.
The Lumut Balai Unit 4 PLTP project is targeted to achieve full operation (commercial operation date/COD) in 2032, bringing PGE’s total Lumut Balai Area capacity to 220 MW, with the addition of Lumut Balai Unit 3 in 2030.
PGE Director of Exploration & Development Edwil Suzandi added that the drilling location is in a highly prospective geological area.
“This exploration area is located around the main upflow zone with high permeability characteristics that have been verified through various geoscience studies and comprehensive technical assessments. With the support of this technical data, the future development of Lumut Balai Unit 4 PLTP is expected to proceed more directed, efficient, and with a more measurable success rate,” he explained.
Meanwhile, PGE Operations Director Andi Joko Nugroho emphasised that this project will also contribute to the overall optimisation of geothermal working area management.
“The Lumut Balai Unit 4 PLTP project is a strategic step to increase proven reserves while ensuring the sustainability of Lumut Balai WKP development. This exploration plays an important role in driving the realisation of the 1 gigawatt (GW) development target as part of PGE’s expansion strategy,” he stated.
The Lumut Balai Unit 4 project is included in the 2025-2034 Electricity Supply Business Plan (RUPTL).
Commercially, the project has strong prospects with an available Power Purchase Agreement (PPA) plus an escalation scheme.
In addition, the projected annual electricity demand growth in South Sumatra Province of 6.072 percent serves as a major supporting factor for the project development.
“Through a combination of technical readiness, strong commercial prospects, and national policy support, PGE is optimistic that the development of Lumut Balai Unit 4 will provide significant contributions to strengthening national energy resilience based on reliable and sustainable clean energy,” he concluded.