JAKARTA (rambuenergy.com) – Philippines’ Aboitiz Power Corporation (AboitizPower), through its wholly-owned Singapore-based subsidiary, AboitizPower International Pte. Ltd., has entered into an agreement with PT Medco Power Indonesia to participate in the exploration and development of a potential 2×55 MW greenfield geothermal plant in East Java Province, Indonesia.
The Philippines’ company revealed the agreement in a file to the Philippines’ Stock Exchange. The company however did not disclose the amount of stakes it purchased from Medco.
PT Medco Cahaya Geothermal, the project company, as the subsidiary of PT Medco Power Indonesia was awarded the concession to develop the project and is currently in the resource validation and exploration stage.
The agreement marks the entry of the Philippines’ company to enter into Indonesia’s power projects.
Medco Power is currently developing a number of power plants, including two gas power plant PLTGU in Batam, namely PLTGU Mitra Energi Batam with capacity of 85 megawatts (MW) with investment of US$ 65 million and PLTG Energi Listrik Batam with capacity of 55 MW with investment of US$ 60 million.
In addition, Medco Power also develops two geothermal projects, namely PLTP Sarula in North Sumatera with capacity of 3×110 MW with investment of US$ 1.5 billion and PLTP Ijen in East Java with capacity of 2×55 MW with estimated investment of US$ 300 million.
PT Medco Cahaya Geothermal already signed a power purchase agreement with state electricity company PT PLN back in February 2013. Medco Cahaya won a tender from East Java provincial government in May 2011 to develop the Ijen geothermal power plant.
Under the agreement, PLN agreed to buy electricity from the PLTU Ijen at a price of 8.58 cent US dollar perkWh. As part of the deal, Medco also agreed to build transmission with capacity of 150 kV from PLTP Ijen to Banyuwangi power distribution owned by PLN along 32 km. (*)