Supreme Energy Strikes Geothermal Power Deal In Indonesia Worth Billions

Supreme Energy: Powering Indonesia’s Future with Geothermal Energy

Geothermal energy continues to gain traction in Indonesia as a sustainable and reliable energy source, thanks to visionary initiatives like those of Supreme Energy. Backed by an unwavering commitment to environmental sustainability and energy security, Supreme Energy has positioned itself as a leader in geothermal development across Indonesia.

Powering Progress: The Landmark Power Purchase Agreement

In December 2012, Supreme Energy, in collaboration with Japan’s Marubeni and France’s GDF Suez, signed a groundbreaking Power Purchase Agreement (PPA) with Perusahaan Listrik Negara (PLN). This partnership set the stage for the development of the Rantau Dedap geothermal power plant in South Sumatra, a project worth $2.2 billion.

The Rantau Dedap plant, with its planned two 110 MW generators, underscores Indonesia's ambition to harness its geothermal potential. Despite logistical challenges posed by the plant’s remote location, Supreme Energy has already begun constructing critical infrastructure, including access roads. The plant is anticipated to commence electricity generation by 2017.

Why Geothermal Energy?

Indonesia’s position atop two volcanic chains gives it access to 40% of the world’s geothermal reserves, offering a unique opportunity to lead in renewable energy production. Geothermal energy aligns with the Indonesian government’s ambitious targets for electricity capacity expansion:

55,000 MW by 2020

17% renewable energy contribution by 2025

The government’s decision to revise feed-in tariffs to between 11 and 18 cents per kilowatt-hour for geothermal energy has been instrumental in attracting private investments. This tariff structure incentivizes geothermal projects in various locations, ensuring equitable and sustainable energy development.

Supreme Energy’s Vision and Values

Supreme Energy’s President Director, Supramu Santosa, describes the Rantau Dedap plant as one of three major geothermal initiatives under the company’s umbrella. These efforts underscore the company’s dedication to not just providing energy but also contributing to Indonesia's green energy transformation.

Beyond business, Supreme Energy remains committed to fostering local community development, enhancing the ESG (Environmental, Social, and Governance) journey, and leveraging geothermal knowledge to drive innovation.

The Future of Geothermal Energy in Indonesia

PLN’s renewable energy chief, Muhammad Sofyan, confirmed plans for at least 15 additional PPAs, cumulatively targeting up to 2,000 MW of geothermal energy. This momentum highlights Indonesia’s resolve to embrace renewable energy as a cornerstone of its energy mix.

The government’s 2025 energy mix targets—20% diesel, 30% gas, 33% coal, and 17% renewable energy—further emphasize geothermal's critical role in reducing reliance on fossil fuels while ensuring energy independence.

Thoughts

Supreme Energy is not just developing power plants; it is creating pathways for a greener and more sustainable Indonesia. As the world grapples with climate change, projects like Rantau Dedap exemplify the innovative approaches required to transition toward clean energy solutions.

The Indonesian Geothermal market has been on the rise lately and at Alphaxioms we take pride in being part of such a stride.

For further insights into Supreme Energy’s groundbreaking projects and updates on Indonesia's renewable energy landscape, explore their publications or connect directly via their head office in Jarkata.

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