PLN has appointed Japan-based Sumitomo Corp. to construct a geothermal power plant in Lampung, Indonesia representing a total investment of USD 156.7 million. The Ulubelu geothermal plant located in the province’s Tenggamus regency will have two power generation units each with a capacity of 55MW. Mr Nasri Sebayang director for planning and technology at PLN said that the power plant would supply power to the PLN grid in Lampung and South Sumatra. He added that the power plant will receive steam from the geothermal field in Ulubelu district, which is operated by PT Pertamina Geothermal Energy, a subsidiary of state oil and gas company PT Pertamina. The project will be financed with a loan from Japan International Cooperation Agency. The loan will also cover the funding for the construction of a 150 kilowatt power grid and substations. The power plant is expected to begin commercial operations by 2012.
