PT Pertamina Geothermal Energy said on Monday it had secured $1 billion in loans from the World Bank and the Japan International Cooperation Agency to develop three geothermal power plants in Sumatra and Sulawesi.
“The World Bank and JICA each will provide us with a $500 million loan with tenors of 40 years,” president director Abadi Poernomo said.
The World Bank’s loan will be used to develop the 20 megawatt Lahendong plant in North Sulawesi and the 110 MW first stage of the Ulubelu plant in Lampung, Sumatra, Abadi said.
The JICA loan will be used to develop the 110 MW Lumut Balai plant in South Sumatra, he said.
Pertamina Geothermal, a subsidiary of state oil and gas company PT Pertamina, plans to spend $200 million next year to develop 27 new geothermal wells at the three plants and four other planned developments in Sumatra and Java. The seven plants are expected to add a total of 270 MW of power to the national grid by latae 2012, as part of the second stage of the government’s “fast-track” 10,000 MW power-generating program.
Geothermal plants make up about 30 percent of the 10,000 MW expected to come on stream in the second phase of the program, which is projected to finish in 2014.
Also on Monday, the Energy Ministry made public a Dec. 4 regulation setting a maximum price cap of 9.7 cents per kilowatt hour on geothermal energy sold to state power company PT Perusahaan Listrik Negara.
Abadi welcomed the cap, which he said was in line with international prices. “It’s reasonable enough, and the regulation will reduce the risk for producers,” he said.
Forced to sell electricity at below the cost, PLN often insists on paying lower-than-market rates.