The Enel Group last week said that its Enel Green Power division will work with geothermal developer PT Optima Nusantara Energi on exploration of geothermal resources for the development of the 55-MW Way Ratai geothermal project in Indonesia’s Lampung province.
The companies were awarded the right to hold the license for the exploration following a tender launched by the Indonesian Ministry of Energy and Mineral Resources (MEMR) last December.
Enel said the project will be the first developed by the company in Indonesia, and the exploration phase of the project will cost up to US $30 million.
“Indonesia is the largest economy in Southeast Asia and one of the world’s main emerging markets,” Francesco Starace, CEO and general manager of Enel, said in a July 14 statement. “We are leveraging on the latest technology and our solid experience in the geothermal field, in collaboration with our partner, to contribute to Indonesia’s ambitious energy plan for an increased share of renewables in the country’s energy portfolio.”
The tender was part of Indonesia’s plan to increase the share of renewables in its energy mix to up to 23 percent by 2025 from the current 12 percent.
According to the U.S. Energy Information Administration (EIA), Indonesia ranked third in the world in both geothermal electricity production and geothermal generating capacity in 2014, behind the U.S. and the Philippines. MEMR estimates that the country holds a potential 29 GW of geothermal capacity reserves, only 5 percent of which is currently being used.
Enel said that construction of the geothermal power plant, which depends on the results of the exploration phase, is expected to be completed in 2022.
Lead image credit: Kondephy | Wikimedia