Ormat Technologies (ORA) and PT Medco Power Indonesia (“Medco Power”) through their subsidiary company, PT Medco Cahaya Geothermal (“MCG”), signed a Financing Agreement with PT Sarana Multi Infrastruktur (Persero) (“SMI”) for development of Ijen Geothermal Power Plant. The signing was witnessed by Harris Yahya, Geothermal Director of the Ministry of Energy and Mineral Resources, Adi Lumakso Director of Generation Management of PT PLN (Persero), Hilmi Panigoro President Director of MedcoEnergi, Doron Blachar CEO of Ormat, Eka Satria President Director of Medco Power and Edwin Syahruzad President Director of SMI.
The Ijen power plant will be developed in stages with the first phase of the development is expected to generate 34 MW in 2025. MCG, a jointly owned company between Medco Power (51% equity share) and Ormat Technologies (49% equity share), will develop and operate the first geothermal power plant in East Java. Ormat also signed a contract as a key contractor on OEC supply for this project.
“This signing is another step to support Indonesia’s economy towards clean renewable energy and another step in Ormat’s long term plan to increase its presence in the country both as a geothermal power plant owner and as an equipment supplier,” said Doron Blachar, Ormat’s Chief Executive Officer.
“This signing is another milestone of our climate change strategy to expand our renewable power portfolio,” said Hilmi Panigoro. Eka Satria added, “This signing demonstrates Medco Power's commitment to developing clean and renewable power for Indonesia post completion of the Riau gas-fired CCPP of 275MW and Sumbawa Solar PV of 26MWp in 2022.”
Through his speech, Edwin Syahruzad also mentioned his appreciation for this partnership, “This project is a milestone to contribute Indonesia's commitment to climate change. PT SMI also would thank USAID SINAR for their support in this project.”
