PGE-PLN IP Agree on Electricity Tariff for 15 MW Lahendong Geothermal Power Plant Project
Jakarta (ANTARA) - The consortium of PT Pertamina Geothermal Energy Tbk (PGE) and PT PLN Indonesia Power (PLN IP) has reached an agreement on the electricity tariff with PT PLN (Persero) for the development of the Lahendong Bottoming Unit geothermal power plant project with a capacity of 15 megawatts (MW).
The agreement forms part of the project development process and reaffirms the commitment of all parties to optimising the utilisation of geothermal energy as a clean and sustainable energy source.
“The tariff agreement reached is also an important step in the procurement process for the power plant through the Independent Power Producer (IPP) scheme before the project enters the next development stage,” said PGE President Director Ahmad Yani in a statement in Jakarta on Tuesday.
The Lahendong Bottoming Unit geothermal power plant project is a development that utilises binary (bottoming cycle) technology. This technology processes residual heat from the operation of existing geothermal power plants to generate additional electricity, thereby making energy utilisation more optimal.
Through this approach, heat that was previously unused in the power generation process can be converted into additional electrical energy. Ahmad Yani described this achievement as a follow-up step by PGE together with PLN IP in supporting the acceleration of the national energy transition.
“We welcome the progress of this project, which continues to run according to plan. The use of bottoming technology allows the remaining geothermal energy potential from existing power plant operations to be utilised more optimally,” he said.
“Through this technology, residual heat that was previously untapped can be reconverted into electricity, thereby increasing generation efficiency while strengthening the contribution of geothermal energy in the national clean energy mix. Moving forward, we are ready to proceed with this project to the next stages so that its benefits can soon be felt by the community,” he added.
Following the tariff agreement, the project will enter the next stages, starting from the formation of a joint venture, the Engineering, Procurement, Construction, and Commissioning (EPCC) process, to the preparation of the Power Purchase Agreement (PPA). The project is targeted to achieve Commercial Operation Date (COD) in 2028.
Previously, at the end of December 2025, PGE and PLN IP had also agreed on the electricity tariff for the Ulubelu Bottoming Unit geothermal power plant project with a capacity of 30 MW. Both projects are part of the synergy between the two state-owned enterprise affiliates under PT Pertamina (Persero) and PT PLN (Persero) in developing geothermal energy in 19 existing projects with a total capacity of around 530 MW.
As a pioneer in geothermal energy development in Indonesia with more than four decades of experience, PGE continues to expand the utilisation of geothermal potential through technological innovation and strategic project development.
Currently, PGE manages an installed capacity of 727 MW from six operational areas. The company is also developing several new projects to increase installed capacity in the coming years.