In the 1990’s the Government of Indonesia set out to accelerate the domestic exploration and development of geothermal resources. The Government invited private companies to cooperate with PERTAMINA, both on the upstream side to explore and develop potential geothermal energy resources to produce energy and the downstream to build power plants (PLTP) and convert such geothermal energy into electricity based on the Joint Operation Contract (JOC).
At present, there are 5 JOC projects in Indonesia, JOC Darajat (Star Energy Geothermal), JOC Gunung Salak (Star Energy Geothermal), JOC Wayang Windu (Star Energy Geothermal), JOC Sarulla (Sarulla Operations Ltd), and JOC Bedugul (Bali Energy Ltd). JOC Bedugul is the only remaining JOC yet to commence operations and is expected to develop its significant proven reserves in the near future.
In relation to the project, the power production as per the JOC are sold to the Buyer which in this case is the State Electricity Company PLN based on the Energy Sales Contract (ESC) for 30 years.
The Indonesian government has set a target of 23% renewable energy by 2025. Geothermal power will play a key role in achieving the government’s target and current generation capacity is expected to quadruple, growing to 7,200 megawatts.
In the Electricity Supply Business Plan (RUPTL) of PLN year 2021-2030, Bedugul Geothermal Power Plant (PLTP) is expected to immediately produce and contribute to meeting the electricity demand in Bali Province.