The construction of the geothermal plant, located in the province of Lampung, depends on the results of the exploration. If the project proceeds, it would be completed and brought into operation in 2022. The estimated energy produced would be roughly 430 GWh a year, energy that would then be sold to the public utility PLN, as part of a 30-year Power Purchase Agreement
In 2015, through a partnership with the Indonesian company PT Optima Nusantara Energy, which specializes in the development of geothermal projects, the companies were awarded the rights for geothermal resource exploration in preparation for the construction of the 55-MW Way Ratai project, following a public tender called by the Ministry of Energy and Mineral Resources.
Way Ratai is Enel’s first project in the country and marks the company’s entrance into the Indonesian renewables market.
“Indonesia is southeast Asia’s largest economy and one of the main emerging markets in the world. This award is a first step for the growth of Enel’s activities in the region,” said Francesco Starace, CEO of Enel.
The Asian country’s commitment to using clean energy characterizes the National Energy Plan 2016-2025, which aims to increase the share of renewables in the energy mix from the current 13 percent to 23 percent by 2025, with geothermal energy holding a prominent place.