PLN opens tender for Lahendong power plant

The Jakarta Post, Jakarta

State electricity company PLN has opened a tender for the construction of a 20-megawatt (MW) geothermal power plant in North Sulawesi.

PLN director for primary energy and power generation Ali Herman Ibrahim said on Saturday that the engineering, procurement and construction (EPC) tender for the Lahendong power plant would close on Jan. 25, 2005.

"The EPC tender for the development of the Lahendong geothermal power plant is now open," Ali was quoted by detik.com as saying.

He said the company expected the construction of the power plant to be completed in 20 months and was expected to be operational by March 2007.

"PLN will cooperate with PT Pertamina as the owner of geothermal resources. We have already agreed on the terms of agreement, but we have not yet decided on the price," Ali said.

PLN's use of geothermal resources for power generation is considered strategic, not only because of its abundance in the country, but also because its use will reduce the firm's reliance on the more expensive fuel-based energy, and so help cut costs.

Situated on the so-called "ring of fire" volcano belt, Indonesia has an enormous supply of geothermal resources.

Data from the Indonesian Geothermal Association (INAGA) shows that Indonesia accounts for 40 percent of the world's geothermal resources, which has a potential to generate more than 20,000 MW of electricity.

Indonesia currently has several geothermal power plants with a combined output capacity of 747.5 MW, or about 5 percent of the total geothermal potential.