Jakarta – Indonesia’s efforts to strengthen its renewable energy mix have received a significant boost by adding capacity to the Muara Laboh Geothermal Power Plant (PLTP) in South Solok, West Sumatra. The project, managed by PT Supreme Energy Muara Laboh (SEML), is scheduled to begin commercial operation (COD) of Unit 2 in early 2027 with a capacity of 80 MW.
“The development of Muara Laboh PLTP Unit 2 and Unit 3 is a strategic step to increase the reliability of Sumatra’s electricity supply while supporting Indonesia’s net zero emission target by 2060,” said Supramu Santosa, Founder & Chairman of PT Supreme Energy, in a press statement, Thursday, December 26.
Muara Laboh Unit 3, with a capacity of 60 MW, is planned to start operating in 2033. These two new units add a total capacity of 140 MW and are important milestones in developing renewable energy in the country.
Investment and government support
Unit 2 and Unit 3 development projects require an approximately USD 900 million investment. Supramu underlined that this big step was realised thanks to close cooperation with international partners such as Sumitomo Corporation and INPEX Geothermal Ltd.
The Amendment to the Power Purchase Agreement (PJBTL) for Unit 2 and Unit 3 with PLN was signed on December 23, 2024. This follows the approval of electricity price adjustments from the Minister of Energy and Mineral Resources and an approval letter from the Minister of Finance.
Muara Laboh PLTP has been operating Unit 1 since 2019, producing 85 MW of electricity for the Sumatra grid and serving around 760,000 households. With the addition of Unit 2 and Unit 3, the total carbon emissions that can be reduced reach 900,000 tons of CO2 per year.
“This project not only reduces carbon emissions but also provides substantial economic benefits to the surrounding community, including through royalty payments, production bonuses, and job creation for 1,500 people,” Supramu explained.
PT Supreme Energy also manages other projects, such as the Rantau Dedap geothermal power plant in South Sumatra, which has a capacity of 91.2 MW and has been operating since 2021. Meanwhile, exploration in the Gunung Rajabasa Geothermal Working Area in South Lampung is being prepared by PT Supreme Energy Rajabasa (SERB). (Hartatik)
