GDF SUEZ and International Power (70% owned by GDF SUEZ) announce that IPR-GDF SUEZ Asia, together with project partners PT Supreme Energy and Sumitomo Corporation, has signed 30-year Power Purchase Agreements (PPAs) for two 220MW geothermal projects with PLN, the state-owned utility of Indonesia. The Ministry of Finance of the Republic of Indonesia has issued a Government Guarantee Letter for the two projects, covering the obligations of PLN under the PPA.
The two projects, called Muara Laboh and Rajabasa, are planned to be built on Sumatra island to deliver power to the region which continues to experience high demand growth. Both projects are included in the Indonesian Government’s second fast-track programme, of which around 4,500MW should come from geothermal sources. Signing of the PPAs is a necessary pre-condition to commencing exploratory drilling for geothermal resource. Following confirmation of the resource, project financing and EPC (Engineering, Procurement and Construction) arrangements will be negotiated. Subject to the timing of these, both projects are expected to start operation in 2016.IPR-GDF SUEZ Asia has a 35% interest in the projects.
Notes to Editors
IPR-GDF SUEZ Asia is one of the leading independent power producers in Indonesia with 1,280MW (gross) of operating assets and 815MW (gross) of additional capacity under construction. Last year it entered into a joint venture agreement with Marubeni Corporation and PT Supreme Energy for the development of another 220MW Rantau Dedap geothermal project in the South Sumatra Province.