GDF Suez reaches closes financing for exploration phase of Indonesian goethermal power project
GDF SUEZ and Supreme Energy have reached financial closing allowing for the first drawdown under a US$50 million facility agreement with the Asian Development Bank (ADB) and Clean Technology Fund regarding the initial phase of a 240 MW geothermal project in Indonesia.
Located in South Sumatra, the Rantau Dedap project has a targeted capacity of 240 MW. The initial phase will consist of geothermal resource exploration involving the civil infrastructure construction, drilling and testing of wells. The developers expect to complete the exploration drilling program in 2015.
If developed to the targeted capacity, the Rantau Dedap is expected to provide access to electricity for around 480,000 households for over 30 years and an estimated net reduction in carbon dioxide emissions equivalent to 1.1 million tons per year.
The project will be implemented under a 35-year geothermal operating license, a 30-year power purchase agreement (PPA) with Perusahaan Listrik Negara, the national electricity utility company, and a business viability guarantee from the Ministry of Finance.
GDF SUEZ is also developing two other geothermal exploration projects in Indonesia:
- one in Muaralaboh in Western Sumatra and
- one called the Rajabasa project, on the Southern tip of the island.
With a hundred and forty active volcanoes, Indonesia has the largest geothermal potential on the planet, with 40% of the world’s reserve. The three geothermal power plants should meet 50% of the target set by the Indonesian government development program of 10,000 MW by 2025.
