1,000 MW geothermal capacity up for tender in Indonesia

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Indonesian state-owned utility PT PLN (Persero) has issued a request for proposals (RFP) for up to 1 GW geothermal projects. Interested parties are invited to submit bids to develop both geothermal steam fields and power plants with at least 5 MW capacity.

This forms part of PLN's assignment from the Government of Indonesia to develop its Geothermal Working Areas, which have a total capacity of 1,000 MW.

Eligible parties must be based in Indonesia or countries which have diplomatic relations with Indonesia. Though the latter must bid to develop projects in consortium with reputable local companies. Furthermore, eligible parties must have demonstrable experience in:

• a geothermal resource study with a minimum capacity of 10 MW,
• well drilling and testing on an oil/gas/geothermal project,
• managing a geothermal reservoir with a minimum capacity of 10 MW,

It is preferable that bidders also have experience in engineering, procurement and construction (EPC) and operation and maintenance of a geothermal power plant with a minimum capacity of 10 MW.

Successful bidders will be responsible for managing exploration risk. Should exploration be successful, they will obtain Geothermal Power Production Agreements (GPPAs). For more information on the RFP, see the Business Opportunity.

This follows PLN's recent establishment of a new subsidiary dedicated to developing geothermal projects - PLN GG. Also, it forms part of the utility company's plan to develop 4,583 MW of geothermal power between 2018 and 2027.

The Government of Indonesia aims to increase the installed capacity of its geothermal power plants from the current 1,838.5 MW to 2,058.5 MW in 2018 and 7,200 MW by 2025.