Mitsubishi Power Will Build New Geothermal for Indonesia

Mitsubishi Power is expanding its geothermal infrastructure in Indonesia. The company has received an order from PT Pertamina Geothermal Energy (PGE), a subsidiary of the state-owned oil and gas group PT Pertamina, for construction of a 55-MW unit at the Lumut Balai Unit 2 geothermal power station.

The order is for a steam turbine, generator, and other related equipment at Lumut Balai. The turnkey contract announced Dec. 5 calls for development of the project, located in the Indonesian province of South Sumatra, with Mitsubishi Corp., China’s SEPCO III Electric Power Construction Co., and Indonesian engineering firm PT Wijaya Karya.

The new unit is expected to enter commercial operation in 2024.

Expanding Renewable Energy

Mitsubishi officials on Monday said the project is part of the Indonesian government’s plan to expand power generation from renewable resources. The government has a target for the country to receive 23% of its power supply from renewable energy by 2025. Mitsubishi in a news release said PGE has received financing support for the project from the Japan International Cooperation Agency.

Artist’s rendering of a new geothermal power unit expansion at the Lumul Ball plant in Indonesia. Courtesy: Mitsubishi Power

Kazuki Ishikura, President Director of MHI Group local subsidiary PT Mitsubishi Power Indonesia, said, “Indonesia has the world’s second-largest geothermal potential, and we are honored to have a hand in supporting power plants across Indonesia that leverage this massive potential—from the Darajat geothermal power plants in West Java, Kamojang geothermal power plant in Bandung and now, the Lumut Balai II geothermal power plant. It is our honor to be selected as a trusted partner for Pertamina Geothermal Energy to deliver secure and sustainable power to millions across the nation, and realize Indonesia’s renewable energy targets.”

Mitsubishi Power will be in charge of the basic design of the geothermal power generation facilities. The company will supply the steam turbine, generator, and other main accessory equipment. Mitsubishi Power also will supply engineers to provide guidance for installation and trial operation.

Power Demand Rising

Indonesian officials said power demand is rising rapidly in the country as economic activity resumes after declining electricity use during the pandemic. PGE is focusing on building new geothermal plants to increase electricity output.

Mitsubishi Power to date has supplied six systems for geothermal power plants in Indonesia, with a combined output of about 400 MW. The company has developed more than 100 geothermal units across 13 countries, totaling about 3.2 GW of generation capacity.

Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).

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