Tata Power, India's integrated private power company, announced that the consortium comprising of Tata Power (47.50%), Origin Energy Limited (47.50%) and PT Supraco Indonesia (5%) were declared as the successful bidder for the Sorik Marapi geothermal project in Northern Sumatra, Indonesia.
The Sorik Marapi project is estimated to support the development of approximately 240 MW of geothermal generation capacity. The project will be developed by PT Sorik Marapi Geothermal Power (“SMGP”), a Special Purpose Vehicle formed by the Consortium.The Consortium would undertake a detailed exploration programme over the next 18 months. The expected Commercial Operation Date (COD) for the project is June 2015.
Speaking on the occasion, Mr. Prasad R Menon, Managing Director, Tata Power said, “Tata Power is happy that itsefforts to explore new avenues in the renewable space is moving on asteady path and in the right direction. Tata Power has a strong mission to achieve at least 25% of its generation portfolio through renewable sources of energy by 2017, geothermal energy being one of the prime renewable growth engines. The Sorik Marapi exploration is testament to our faith in the untapped potential of geothermal energy. I would like to take this opportunity to congratulate the entire team that has put in their relentless efforts during the bidding process. Our association with Origin Energy has been fruitful and rewarding. This is in line with our overall growth strategy to build global relationships and partnerships with organizations which are leaders in their field.”
Origin’s Executive Director, Finance and Strategy, Ms. Karen Moses said“The Joint-Venture is consistent with Origin’s strategy of pursuing exploration opportunities for energy resources near growing markets. This joint venture is reflective of our belief that geothermal can provide large scale renewable base load energy.”
Indonesiais situated on the Pacific ‘Ring of Fire’ and is expected to have approximately 27,000 MW of potential conventional geothermal resources(considered the largest in the world). Indonesia currently has 1196 MW in geothermal generation in operation.
Tata Power with generation capabilities in Hydro, Thermal, Solar and Wind energy has nearly 3000 MW in operation with an additional 5500 MW in construction. Tata Power has a 10% stake in Geodynamics Ltd., a listed Australia-based organization specializing in geothermal energy and Enhanced Geothermal Systems (EGS). Along with Geodynamics, Tata Power is reviewing the potential of geothermal prospects outside Australia to secure a foothold in the growing renewable energy markets. Tata Power is committed to investments in the energy and utilities space in Indonesia.