bonanza?

this should ease some concern...did for me :)

Bakrie Power Prepares US$ 777 M for Three Geothermal Projects
BY NOVAN DWI PUTRANTO & NURSEFFI DWI WAHYUNI
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JAKARTA (IFT) - PT Bakrie Power, a subsidiary of PT Bakrie & Brothers Tbk (BNBR), allocates US$ 777 million for the development of three geothermal power plants (PLTP) with total capacity of 225 - 250 megawatts (MW). Ali Herman Ibrahim, Director of Bakrie Power, said the three PLTP will be built in Sokoria in East Nusa Tenggara, Dairi Prima in North Sumatra and Ngebel in East Java.

Bakrie Power takes Panax Geothermal Limited, a company in the geothermal sector listed in the Australia Stock Exchange. The two companies will develop geothermal potential in Sokoria with capacity of 30 MW, the Dairi Prima geothermal plant in North Sumatra with capacity of 30-55 MW and the PLTP Ngebel in East Java, with capacity of 3x55 MW.

Panax Geothermal said the company is ready to invest US$ 500 million per year for geothermal development in Indonesia, starting in 2013.

Bakrie Power has a 55 percent stake in Sokoria, and 51 percent in Dairi Prima. Whereas, in the Ngebel PLTP project, the said company also has a majority stake of 65 percent. The selling price of electricity from the Sokoria PLTP is US$ 12.5 cents per kilowatthour (kWh). While, the prices for the Dairi Prima PLTP is US$ 15 cents per kWh and Ngebel PLTP project at US$ 7.55 cents per kWh.

M Sofyan, Chief of Renewable Energy Division at PLN, said the company and Bakrie Power are still in the process of negotiating the prices for the three PLTP. PLN targets that the power purchase agreement with Bakrie Power will be signed this year.

In addition to Bakrie Power, PLN is also renegotiating the purchase price of geothermal electricity from the Jailolo area in West Halmahera, North Maluku. The project will be developed by PT Star Energy Geothermal Halmahera. Sofyan said the renegotiation is being done because PLN considered that the purchase price based on the auction results was too high.

The geothermal tender auction held by the local government of Jailolo area resulted in a purchase price of geothermal electricity at Rp 1,727.54 (US$ 0.18) per kWh. The price of electricity is more expensive than the selling price of geothermal electricity at US$ 9.7 cents per kWh, set by the government in the Minister of Energy and Mineral Resources Regulation No. 2 of 2011.

Data from the Directorate General of Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, states that Star Energy plans to build a geothermal power plant with capacity of 10 megawatts in Jailolo, or about 13 percent of the expected total reserves of 75 megawatts.

Star Energy targets the power plant to begin operation in 2015. With proper infrastructure, the cost of drilling a geothermal well amounts to an average of US$ 8 million. "In Jailolo, the drilling costs could reach US$ 10 million per well," said Sanusi Satar, Vice President External Affairs of Star Energy.

Indonesia's geothermal potential has currently reached 29,038 MW, located in 276 locations. The potential is made up of 13,171 MW of resources and 15,867 MW of reserves. This year, the capacity reaches 1,226 MW. In 2015, geothermal development is targeted to increase up to 3,156 MW. (*)