November 12th, 2012. PT Supreme Energy Rantau Dedap, entered into a Power Purchase Agreement (PPA) with Indonesian state-owned electricity utility Perusahaan Listrik Negara (PLN). The PPA is for the sale and purchase of power from the Rantau Dedap geothermal project in South Sumatra and will be developed under the Independent Power Producer (IPP) scheme.
Signing of PPA marks a key milestone as it defines the contractual rights and obligations of the parties during the exploration phase, construction phase and operation phase – conditions which are necessary to start exploration drilling activities. Commercial operation of the Rantau Dedap geothermal project is expected to start in 2017.
The capacity of Rantau Dedap geothermal project foreseen in the PPA is 2 x 110 MW. The electricity generated will be dispatched for 30 years to the Sumatera Grid owned by PT PLN (Persero). The Rantau Dedap Geothermal Project is included in the 10,000 MW Power Plant Acceleration Development Program Phase II (Presidential Regulation No. 4/ 2010) as amended by Presidential Regulation no 48 of 2011.
In the end of year 2010, PT Supreme Energy in consortium with GDF SUEZ Energy International, was selected as the winner of the concession (WKP) tenders for the Rantau Dedap geothermal resource area. On December 29th 2010, the geothermal mining license (IUP), valid for a period of 35 years, was awarded to PT Supreme Energy Rantau Dedap through the Decree of South Sumatra Governor.
PT Supreme Energy, GDF Suez Energy International and Marubeni Corporation bring to the geothermal sector in Indonesia an unmatched combination of technical skills, geothermal expertise and IPP development, construction and operational experience in Indonesia and worldwide.