Improvement of the Muara Laboh geothermal plant, West Sumatra

Our friends of geothermal information outlet Panas Bumi Information in Indonesia late last calendar year shared the tale of Supramu Santosa, the CEO of PT Supreme Electricity on the journey to the Muara Laboh, geothermal power plant in West Sumatra, Indonesia.

The plant with an mounted electric power generation capacity of 85 MW was formally inaugurated in February 2020, so about a 12 months in the past.   Supramu said, from 17 geothermal points in West Sumatra, only Muara Laboh can be utilized as an electricity source for fueling the energy demand in the Sumatra energy grid.

Due to the fact Indonesia was hit by the Asian economical crisis in 1989, only two personal companies succeeded in conducting geothermal exploration, one particular of which is Supreme Strength.

Supramu hopes that Supreme Energy’s success in setting up the Muara Laboh PLTP will trigger the accomplishment of geothermal utilization at other points in West Sumatra and in other areas in the country.

According to Supramu, the proportion of failure and achievements in geothermal utilization is well balanced, at around 50 perent (50% results or 50% failure), with quite massive investment decision price and a quite extended enhancement system.

“Geothermal investment decision has a quite huge hazard and the advancement phrase is pretty extended. From commence to manufacturing, it will take 8 a long time, that is, if standard, ”said Supramu.

Even for the Muara Laboh PLTP, stated Supramu, Supreme Power took around 12 a long time to the level of commercial operation and relationship to the PLN transmission community.

“The 12 a long time long period of time was carried out from the beginning of the geological research to production. Namely from 2008 to 2019, “he spelled out.

Supramu described the journey of geothermal utilization in Muara Laboh. In 2008, Supreme Strength executed a geological and bodily examine at the web site. The benefits are then submitted to the government (MEMR).

“In 2008 we carried out a industry analyze, the benefits were then submitted to the federal government for a tender. In 2010 Muara Laboh was tendered. So it took Supreme Strength two a long time to wait around for the tender because publishing the analyze final results, “he described.

In accordance to Supramu, the principal impediment in geothermal development in Indonesia is tariffs. According to him, it took Supreme Electrical power 4 several years to achieve an agreement on the tariff for Muara Laboh and PLN.

“In 2012, a rate settlement with PLN was only achieved. And as lengthy as there is no arrangement, Supreme Power continues to devote dollars. So within just those four a long time I ongoing to battle, “he explained.

Right after the cost is achieved, he ongoing, the firm then explores with infrastructure improvement routines. Among them are the road to the mountain to the place of the action.

“Before drilling, we 1st had to establish a street to the mountain. The duration of the street is around 30 km. For that on your own it will cost was close to USD 30 million, ”said Supramu.

“This activity took a few a long time, particularly since the Muara Laboh PLTP had to be built in the mountains,” he described.

After creating the street, Supreme Vitality then drilled 6 exploration wells.

“The very first very well worked very very well. But the second, 3rd, and fourth wells unsuccessful. Meanwhile, the fifth properly is little and the sixth properly is medium, ”he stated.

Exploration actions were being accomplished in 2014. Then in 2015 it entered the exploitation phase.

Supramu conveyed that from the wells that have been drilled, it is identified that Muara Laboh geothermal vitality can generate a capacity of all around 200 MW. However, since West Sumatra only desires 80 MW, its improvement was capped at that dimensions and need.

“So only about a 3rd of what was in the beginning planned. But thank God, we are nevertheless grateful that now 85 MW have even flowed and been productive throughout enhancement, “said Supramu.

He additional that through enhancement, 13 wells were drilled. The funding for 1 effectively was up to USD 7 million. So the overall expenditure of Supreme Energy arrived at USD 587 million pounds or nearly Rp. 9 trillion.

“It prices Rp. 9 trillion. But thank God we were being profitable even although the economic problem. As a gratitude to the folks of West Sumatra, I constructed a corridor for sports and conferences, “said Supramu.

In accordance to Supramu, apart from the issue of tariffs, geothermal utilization also faces problems from the bordering atmosphere, specifically the resistance of the folks who do not realize the value of geothermal.

As is regarded, the Muara Laboh PLTP has officially operated due to the fact last December 2019. For stage 2 of enhancement, the corporation is however negotiating a rate with PLN.

The procedure of the Muara Laboh PLTP further provides to the trustworthiness of electrical power supply in the West Sumatra region. Electricity from this PLTP can electrical power up to 340 thousand households.

Muara Laboh PLTP is managed by PT Supreme Electricity Muara Laboh (SEML), a joint venture enterprise PT Supreme Energy, ENGIE, and Sumitomo Corp.

Resource: Panas Bumi News