The signing of PPA Amendment for Rantau Dedap Geothermal Project

Posted on: November 16th, 2017 by Relation Staff

Jakarta, 16 November 2017. Today, PT Supreme Energy Rantau Dedap (SERD) and PT PLN (Persero) signed the amendment of Power Purchase Agreement (PPA) for the Rantau Dedap Geothermal Project, located in Regency of Muara Enim and Lahat, City of Pagar Alam, South Sumatera Province, with total capacity of 220 MW at Ministry of Energy and Mineral Resources (EMR) Office. The amendment of PPA  was signed by Supramu Santoso, President & CEO of SERD and President Director of PT PLN (Persero), Sofyan Basir witnessed by Minister of EMR, Ignasius Jonan and Chairman of Indonesia Geothermal Association (INAGA/ API), Prijandaru Effendi.  This amendment of PPA is the most important milestone of the project upon completion of the exploration drilling in 2015 and the feasibility study in 2016 that confirmed the reserves capacity of steam is only sufficient to build a power plant with a capacity up to 86 MW for the 1st phase.

Supramu Santoso, President & CEO of SERD said that “the development of Rantau Dedap Geothermal represents a long persistent efforts and strong commitment of Supreme Energy in the development of Geothermal Resources in Indonesia which is an important part of the Government of Indonesia plan to boost the share of renewable energy in the country’s energy mix to achieve a sustainable energy security”.

The original  PPA was signed on November 12, 2012 and the amendment of PPA  to reflect the tariff adjustment was required for developing the project based on the results of the feasibility study report. The price adjustment and PPA amendment process have been started since 2016, and in early November 2017, The Minister of EMR finally approved the price adjustment. This successful adjustment process is a result of intensive and constructive negotiations between the parties, driven by the goal congruence for accelerating the development of geothermal energy as part of renewable energy in Indonesia. Following the tariff adjustment agreement, SERD will continue with the Financing Close process, exploitation drilling, and power plant construction with required COD in 2020.

The electricity generated will be dispatched to Sumatera Grid constructed and owned by PT PLN (Persero) based on a Power Purchase Agreement for 30 years. Rantau Dedap Geothermal Power Plant is a National Strategic Project.