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PLN to build geothermal power plants in North Sulawesi

| Source: JP

PLN to build geothermal power plants in North Sulawesi

Yongker Rumthe, The Jakarta Post, Manado

State-owned electricity company PT PLN is developing power plants
using geothermal energy in North Sulawesi to replace the
hydropower ones which are expected to cease functioning within
ten years due to the rapid disappearance of Lake Tondano.

Harry Lumentut, spokesman for PLN's Region VII overseeing
North Sulawesi, Central Sulawesi and Gorontalo, told The Jakarta
Post recently that the planning was based on the fact that North
Sulawesi had abundant geothermal energy reserves that could be
utilized for decades and the state-owned oil company PT Pertamina
had successfully developed two geothermal projects in Lahendong,
Tomohon and Minahasa.

He said that according to recent research conducted by PLN-
hired experts, the province's volcanic territory had an abundance
of geothermal resources that could be used to drive the power
plants for a long time.

"Based on the researchers' recommendations, PLN is developing
geothermal power plants in Tompaso, Minhasa and in Bukit Ambang,
Mobago Regency. The two plants will be able to produce 555
megawatts which is enough to meet the total power demand in
Sulawesi," he said.

He added that PLN was still negotiating with Pertamina on the
operation of the Lahendong geothermal plants because according to
the law, PLN has a monopoly on the supply of power to consumers.

Pertamina has also developed a mega project of geothermal
plants in Sarulla, Central Tapanuli, North Sumatra.

Harry explained the investment for geothermal projects was
relatively more expensive than diesel-powered plants but cheaper
than hydro powered-plants.

He said they would need to invest US$800 per kiloWatt for a
diesel-power plant while a geothermal plant needed $1,300 per
kiloWatt and a hydropower plant needed $1,500 per kiloWatt.

Harry however said geothermal plants had other benefits
because geothermal resources were renewable and environmentally
friendly, the operating costs were slight lower than hydropower
and that geothermal energy could be utilized for medical and
agricultural purposes.

"We saw some of the geothermal energy's uses when we conducted
a comparative study in Thailand and other Asian countries
recently," he cited.

He said he was optimistic that it would lead to lower
electricity rates in Sulawesi.

He said local people would be included as shareholders in the
projects to win their support.

Harry acknowledged that the two hydropower plants would be
closed down because in the next ten years, Lake Tondano would no
longer be able to supply water to the two power plants.

"According to a recent study conducted by the Japan
International Cooperation Agency (JICA), the lake's water level
has dropped to a depth of only 17 meters from 40 meters in 1934
due the shrinking catchment areas around the lake and the
sedimentation from 35 tributaries flowing into the lake," he
said, while adding that millions of tons of silt per year was
piling up in river.

Abnormal oversiltation is usually caused by deforestation
upstream because of massive disturbance of jungle topsoil.

Due to the technical and environmental problems, PLN's
operational costs have increased by 50 percent over the last
several years.

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