Ormat Technologies, a leading US geothermal and energy storage company, has started commercial operation (COD) of the first section of the 35 MW Ijen geothermal power plant in Indonesia.
This marks a milestone for the power plant in East Java with a planned total capacity of 110 MW. There is a long-term power purchase agreement for the plant with a term of 30 years. The commissioning of the Ijen plant is also an important step for Ormat in its corporate strategy to consistently expand its global geothermal portfolio and extend its presence in Indonesia.
The new power plant will be jointly operated by MCG, a joint venture between Medco Power (51 percent share) and Ormat Technologies (49 percent share).
“Indonesia has one of the largest geothermal potentials globally and with the geothermal targets set by the Indonesian government, we plan to expand our operations in the country. Achieving COD at Ijen demonstrates our strong development capabilities and our commitment towards advancing our short and long-term growth targets in our Electricity segment,” said Ormat CEO Doron Blachar, welcoming the commissioning of the first phase of the project.
According to Ormat, the Indonesian government plans to install plants with a geothermal capacity of 7,200 MW (7.2 GW) by 2035, which would make geothermal energy a cornerstone of the country’s renewable energy strategy. At the end of 2023, Indonesia ranked second in the world with a geothermal capacity of around 2,400 MW for electricity generation, behind the USA with around 4,000 MW.
